When claims for car parts are reimbursed without taking into account depreciation, as opposed to package policies or comprehensive policies, which settle claims after taking into account depreciation on replaced parts, this insurance coverage is referred to as bumper-to-bumper insurance. Depreciation refers to a decline in the value of a vehicle and its components as a result of normal wear and tear. 

Understanding bumper-to-bumper insurance policy

People who choose bumper-to-bumper add-on insurance policy coverage are immune to depreciation. Only vehicles with a minimum age of five years or less are eligible for this add-on insurance.

With the exception of the engine, tyres, batteries, tubes, and glasses, all items are covered by the bumper-to-bumper auto insurance policy. This auto insurance coverage is typically offered in addition to the basic plan.The insurer will pay.

 How are "bumper-to-bumper" insurance claims settled?

Damages depending on the depreciated value of the vehicle and its components during the claim settlement process. This implies that the policyholder is responsible for paying the difference between the actual replacement cost and the parts' depreciated value.

For instance, if your car is charged Rs 50,000 for damages sustained in an accident, you will likely pay between Rs 25,000 and Rs 30,000 for the portions of the car that have depreciated. When you only have comprehensive auto insurance, this occurs. The claim amount won't be reduced based on depreciation if you have an add-on zero depreciation or bumper-to-bumper insurance cover, though. 

What is not covered in ‘bumper-to-bumper’ insurance -

 Although the car has bumper-to-bumper or zero depreciation insurance coverage, there are a few sorts of damages that cannot be covered:

It does not cover damage to any type of electrical or mechanical breakdown, isolated tyres, or engine damage caused by flooding or oil leaks.

It does not cover external fittings like gas kits or oil changes or the replacement of consumable goods.

There are some types of damages that are not covered by the car's bumper-to-bumper or zero depreciation insurance: