Car insurance is about selecting the right cover. For car owners in India, buying insurance is not a choice but a legal requirement. However, finding a fitting cover can be tricky as you need to strike a delicate balance between affordability and risk assessment.
The Motor Vehicle (Amendment) Act says every vehicle on public roads in India must have insurance. Car owners who don’t comply may face fines or legal action. You can meet this requirement with third-party insurance. This type of insurance offers financial protection to the insured against legal liability. It covers losses or damages caused to another person or their property.
But the third-party insurance is the most basic cover and does not protect you or your vehicle in the event of an accident, natural calamity or theft.

So, every car owner needs higher insurance, and this is where confusion about coverage starts – what to cover and what to leave out. Most people go for a comprehensive plan that covers you, your car and the passengers in your car, as well as any third party involved in an accident. Comprehensive insurance protects your car from vandalism, theft, and natural disasters like floods.
However, even the best the comprehensive plan may not give you complete coverage, making people go for add-ons. Add-on, as the name suggests, is additional protection you get in your insurance policy by paying extra charges. A popular add-on is bumper-to-bumper coverage, known as zero depreciation or nil depreciation cover.
What is a bumper-to-bumper insurance plan?
Bumper-to-bumper is an add-on to your comprehensive insurance. It provides full coverage for all car damages. This includes rubber parts, fiberglass, plastic, nylon, and metal. These are often not covered in a standard policy.
A bumper-to-bumper add-on covers the whole car. It only excludes specific engine damage, tires, batteries, and glass.
This insurance policy add-on is available for the cars emerging out of the showroom as well as those up to five years old.
Bumper to bumper insurance offers 100% coverage for your car. It covers damages from accidents and other listed reasons in the policy.
The most attractive feature of this add-on policy is that the insurer does not take depreciation into account when you make a claim. The insurer pays you the entire cost of the replacement of car parts. Depreciation plays a big role in car insurance. Insurers know that a car’s value drops as soon as it leaves the showroom. So, when a claim is made, the insurer takes depreciation into account.
The bumper to bumper add-on was introduced in India in 2009. It’s a great choice for car owners who want broad coverage with few exclusions. Bumper-to-bumper insurance is a great add-on for these people:
- Owners of new car and those up to five years old
- Owners of expensive or luxury cars
- New drivers or those with not much experience
- Car owners who live in areas prone to accidents or natural calamities or those who are required to travel to such places
- Those who want to keep their car free of even a slight scratch, dent or bump
- Car age factor: The bumper to bumper insurance is available only for cars five-year-old or younger. The older vehicles are not covered
- Limitation on the number of claims: Most car insurers allow only a limited number of claims in a year. Since the number of claims allowed differs from company to company, car owners should do research before making a decision
- High premium: Bumper to Bumper insurance costs more than a standard comprehensive policy. It includes extra protections that raise the price.
Exclusions in a bumper-to-bumper insurance policy
Bumper-to-bumper has many attractive features but exclusions as well. The bumper-to-bumper insurance policy often doesn’t cover engine damage. This includes issues from fuel leaks or water getting in.
Similarly, if there is a change in the fuel of the car, it may not be covered. Certain type of damages and wear and tear to the battery, tyres, gas kit, clutch plates and bearings are also excluded.
Separate add-ons for engine protection and other exclusions are an option in these situations.
Disclaimer: Please read the sales brochure carefully. It has important details about risk factors, terms, and conditions before you complete your purchase. *The discount amount will vary subject to vehicle specification and place of registration
Possible reasons for claim refusal
Car insurance claims, like other insurances, have many ifs and buts until you get the money in your account. So, you need to be careful right from signing the documents to the expiration of the policy and at the renewal. Your chances of getting the claims depend on how well you follow the conditions laid out in your policy document. You should remember that to err may be human, but the insurers will not leave the opportunity to save wherever they can. Here are some of the common reasons for which a policyholder could be denied a claim:
- If the insured raises a fraudulent claim or hides any information
- Commercial use of a vehicle registered as private vehicle
- If a vehicle is involved in any illegal or unethical activity
- If it is proved that the driver was under the influence of drugs or alcohol when the car was damaged
- If the necessary papers of the car are missing and documentation is incomplete
- If the claim has not been made within the stipulated time
- If the car has been damaged due to uninsured peril
- If the car has been damaged due to mechanical breakdown
Value for money
No policy is perfect. That’s why insurance companies create new products. Bumper-to-bumper insurance addresses key concerns for policyholders. It comes in handy when there is a possibility of a car owner being hit with a huge bill. Of course, you have to pay over and above the regular premium, but you are assured of value for money. You can add the bumper-to-bumper cover either at the time of buying your insurance or any time later.
Many companies provide bumper-to-bumper coverage. So, it’s smart to research the options. Also, use an online bumper-to-bumper calculator to help you decide. After all, it is about the protection of your car.
If you are looking for car insurance, Liberty General Insurance is the place to go. It offers you a wide range of products to help you make an informed choice.
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Frequently Asked Questions (FAQs)
What is a car insurance deductible?
A car insurance deductible is the amount you agree to pay out of pocket before your insurance company covers the remaining claim amount.
What is the difference between a deductible and a premium?
A premium is what you pay regularly for insurance. A deductible is the amount you must pay first when you file a claim, before the insurer helps.
How does choosing a higher voluntary deductible impact my premium?
A higher voluntary deductible lowers your premium since you agree to pay more in case of a claim. However, it also increases your out-of-pocket expense during an accident.
Can I avoid paying a deductible?
No, if you have agreed to a deductible in your policy, you must pay it when making a claim. Some add-ons like zero depreciation cover may help reduce out-of-pocket costs.
Is a deductible applicable for third-party insurance claims?
No, third-party insurance does not have a deductible. The insurer directly compensates the third party for damages.
Tarun Soni
Tarun Soni is the owner of Protectivehub.com, an insurance-focused blog dedicated to providing valuable insights on policies, coverage options, and financial protection. With a passion for simplifying complex insurance topics, he helps readers make informed decisions about their financial security.