DIFFERENCE BETWEEN COMPREHENSIVE VS BUMPER TO BUMPER INSURANCE

It's a challenging decision while selecting the right type of vehicle insurance, especially when there are various options available.

Bumper to bumper and comprehensive insurances are among the most popular choices. As these both insurance types offer extensive coverage, but people often consider these two types to be the same. 

However there is a distinct difference in both serving specific insurance needs depending on the circumstances. To make informed decisions about vehicle insurance purchase it is important to understand the differences between these two. In this comprehensive blog post we will be exploring the key differences between comprehensive and bumper to bumper insurance.  

 

What is Comprehensive Insurance?

Comprehensive vehicle insurance is an extensive insurance policy which compensates for the own vehicle damage along with the third party liabilities. This plan acts as an all in one solution that offers financial coverages to third party damages caused to people, vehicles, or property and also safeguards damages to your own vehicle.

Although comprehensive insurance provides extensive coverage, it deducts depreciation costs while settling claims. This means you have to bear a portion of repair or replacement cost from your own pocket.

 

What is Bumper to Bumper Insurance?

Bumper to bumper insurance or zero depreciation insurance is not a standalone type of insurance. Instead it is an add-on cover that enhances the policy coverage without deducting the depreciation of the vehicle parts being repaired or replaced.

Unlike comprehensive insurance, bumper to bumper car insurance compensates for full cost of repairing or replacing vehicle parts without accounting for depreciation. This means that if your car is damaged, the insurer will cover the full cost of new parts for repairs, regardless of the car’s age.

Bumper to bumper coverage is beneficial especially for new or high-value cars. It ensures you receive the maximum claim amount without any deductions for wear and tear on parts like the bumper, engine, and other components. 

However, bumper-to-bumper coverage may come with certain limitations, often only covering a specific number of claims within the policy term. It’s ideal for car owners who want top-level protection and minimal out-of-pocket expenses when making a claim.

Difference Between Bumper to Bumper Vs Comprehensive Insurance

Sr.No.	Features	Bumper to Bumper	Comprehensive Insurance
1	Coverage Scope	Bumper-to-bumper insurance covers almost all parts of the car, including bumpers, the engine, and many other components.	Comprehensive insurance covers damages to the car from accidents, theft, fire, natural disasters, and third-party liability.
2	Depreciation	With bumper-to-bumper insurance, there is zero depreciation, meaning you receive the full cost of repairs without deductions for wear and tear.	Comprehensive insurance accounts for depreciation, so the payout is lower for older parts.
3	Repair Costs	Bumper-to-bumper insurance provides a higher claim payout, as there’s no deduction for depreciation on parts.	Comprehensive insurance has a lower claim payout because depreciation is applied to some parts.
4	Ideal for	This type of insurance is ideal for new or high-value cars, or for people who want maximum protection with minimal out-of-pocket expenses.	Comprehensive insurance is suitable for all car owners who need well-rounded protection for their vehicle.
5	Add-On Requirement	Bumper-to-bumper coverage is usually purchased as an add-on along with comprehensive insurance.	Comprehensive insurance can be purchased as a standalone policy, with optional add-ons like zero depreciation available.
6	Cost	Bumper-to-bumper insurance has a higher premium due to its extensive coverage without depreciation deductions.	Comprehensive insurance generally comes with a lower premium compared to bumper-to-bumper coverage.
7	Number of Claims Allowed	Bumper-to-bumper insurance often limits the number of claims allowed per policy term.	Comprehensive insurance does not have a specific limit on claims, but frequent claims may impact the no-claim bonus.

 

When to Buy Bumper to Bumper Insurance Cover?

If Your Vehicle is Less Than 5 Year Old

If your vehicle is less than 5 years old bumper to bumper cover ensures to incur complete compensation for repair or part replacement in the initial years of vehicle ownership.

 

If You Own Luxury/Premium Vehicle

If you have a luxury and expensive vehicle with significantly high repair cost. Zero depreciation cover ensures you are not burdened with out of pocket expenses.

 

If You are New Learner Driver

As a new driver you may be afraid of frequent need of repairs and considering complete coverage without depreciations.

 

If You Want Maximum Coverage

If you are worried about the out of pocket expenses and want to cover your vehicle with full coverage you can consider buying bumper to bumper insurance cover.
 

Conclusion

Although comprehensive insurance offers full coverage against damages of your own vehicle along with third party liabilities. Bumper to bumper cover enhances the coverage of insurance to full extent not allowing the insurer to deduct the depreciations during the claim.  It totally depends on the individual budget, need, and future requirements.

 

Comprehensive Vs Bumper to Bumper Insurance- FAQs

 

How can I check if my motor insurance includes bumper-to-bumper coverage?

You can check your policy document for terms like "Nil Depreciation Cover" or "Zero Depreciation Cover." If either is listed, you have bumper-to-bumper coverage as an add-on.

 

Can I add bumper-to-bumper coverage to any type of car insurance?

You can usually add bumper-to-bumper coverage to a comprehensive insurance policy, but it’s not available with third-party-only policies.

 

Which is better: bumper-to-bumper or comprehensive insurance?

It totally depends on the individual insurance needs, and coverage demands. For new, premium vehicle owners and new learners it is advisable to add bumper to bumper add-on with their comprehensive cover.

 

Why is bumper to bumper insurance more expensive than comprehensive?

Yes, bumper to bumper insurance is more expensive than comprehensive as it offers broader coverage and allows depreciation in claim.

 

Is bumper to bumper insurance available for old vehicles?

No, bumper to bumper insurance is typically available for newer vehicles not older than 5 years.

 

How many times I can raise a claim under the Bumper-to-Bumper Insurance Plan in single policy term?

No, usually there is no limit on the number of claims you can raise under bumper to bumper insurance but it is advisable to check the insurer for specific terms and conditions.