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As per Indian Motor Vehicles Act, 1988, all vehicle owners must at least carry third-party car insurance with them while driving on public roads. However, for better protection and more coverage, two more options are available to car owners - comprehensive car insurance and bumper-to-bumper car insurance. Picking the right insurance is as essential as selecting the right car. So here's a look at the difference between comprehensive and bumper-to-bumper car insurance so you can make the right choice.

What is a comprehensive car insurance?

A popular choice in India, comprehensive car insurance provides protection towards third-party liability while also covering your car against any damage. The eventualities covered include natural disasters, riots, fire, arson and vandalism, theft, etc.

You can also buy additional covers for personal accidents, NCB protection, and engine protection and enhance your overall coverage.

Below are the benefits covered by a comprehensive car insurance.

• Cover both third-party and own car damage.

• Cover damage due to natural calamities (floods, cyclones, storms)

• Cover losses due to man-made disasters (vandalism, riots, terrorist activity)

• offers compensation in case of theft

• Covers damages due to explosion or fire

• Offers compensation for irreparable damages

What is Bumper-to-bumper car insurance?

Bumper-to-bumper coverage comes as an add-on to comprehensive insurance, thus providing additional benefit to the benefits offered by a comprehensive car insurance policy. Usually, depreciation is accounted wand deducted while settling claims. However, with this add on cover, claim is settled without taking depreciation into account. Hence this is also called as Depreciation Cover or Zero Depreciation Cover.

Bumper-to-bumper insurance is ideal for high-end luxury cars, new drivers, or bad roads prone to accidents.

Difference between comprehensive and Bumper-to-bumper car insurance

The main difference between comprehensive and bumper-to-bumper car insurance lies in the extent of coverage.

Comprehensive insurance policies will pay after deducting depreciation as per the rates provided by IRDAI considering material chart and age of vehicle. On the other hand, bumper-to-bumper policies pay the entire cost of replacement without considering depreciation.

The table below will give you further insights into the difference between the two policies.

Basis of difference Comprehensive car insurance Bumper-to-bumper car insurance
Premium Lower than bumper-to-bumper. The add on cover can availed by additional payment of premium. Thus, the insurance premium slightly higher than comprehensive insurance
Coverage Depreciation is dudected while settling claims Depreciation is not considered during claim settlement
Type of Car All All
No of claims Unlimited Limited
Protection against theft Yes Yes

When to go for Bumper-to-Bumper insurance policy?

Bumper-to-bumper car insurance is ideal in the following situation:

• For brand new cars

• For luxury category vehicles

• For inexperienced drivers

• For costly car parts

• For bumpy roads or accident-prone areas

Choose the right policy

Both comprehensive and bumper-to-bumper insurance have their pros and cons. Your choice should be based on your driving skills, car usage frequency, area of operation, and the kind of protection you require. If you are seeking complete vehicle coverage with third-party liability insurance, you can choose Kotak Car Secure, all-around protection for your car.

Disclaimer: The content provided is for education and informational purpose only, none of the information contained in our blog amounts to any form of opinion or advice. Please go through policy related documents carefully or consult an expert before making any insurance-related decisions.


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