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HDFC Ergo General Car Insurance: Discounts to Fit Your Budget

HDFC Ergo General Insurance Company offers four different types of car insurance, which are cheapest and best suited for luxury car drivers. They provide seven potential discounts, and their claim settlement and incurred claims ratios are among the industry's best.

HDFC Ergo General Car Insurance: Discounts to Fit Your Budget

HDFC Ergo General Insurance Company offers four different types of car insurance, which are cheapest and best suited for luxury car drivers. They provide seven potential discounts, and their claim settlement and incurred claims ratios are among the industry's best.

Editor's Rating


Good for

  • Consumers seeking a car insurance plan online
  • Luxury Car Drivers

Bad for

  • Consumers seeking the cheapest policy options
  • Sedan drivers

HDFC Ergo General Insurance Company offers two different comprehensive car insurance policy options: a standard single-year plan and a longer three-year plan. Both cover damages to the insured vehicle from natural and man-made calamities, third party damages and injuries, and both include personal accident coverage for the owner or driver. For consumers in need of less coverage, HDFC Ergo also offers a standalone own damage policy and a third party liability policy.

Their plans are cheapest for luxury cars, and they offer market-average rates for SUVs as well. However, their annual premiums for sedans, both new and used, are more expensive and start at least 17% above the national average. HDFC Ergo offers 16 add-on options to expand the scope of your coverage even further, seven discounts to help make your policy better fit your budget, and a smooth online purchasing process, so you can secure a new car insurance plan in just three minutes with no required documentation.

Summary of HDFC Ergo Car Insurance Company
HDFC Ergo has an optimal 82% incurred claim ratio and a 98.8% claim settlement rate
Apply any of 7 discounts to either their single-year or long-term comprehensive plan options
Drivers can conveniently purchase any of HDFC Ergo's 4 policies online using Reliance's user-friendly platform

HDFC Ergo Comprehensive Car Insurance Plans and Benefits

HDFC Ergo's standard comprehensive car insurance policy is their single-year plan, and it's most affordable for luxury car drivers. Annual premiums start at Rs. 96,773 for a new Mercedes-Benz E-350, 18% below the market average of Rs. 1,17,404.

Bar graph showing premium prices for a new Mercedes-Benz E-350
Bar graph showing premium prices for a new Mercedes-Benz E-350

SUVs are also affordable to insure through HDFC Ergo, with annual premiums starting 2% cheaper than the national average, but both new and used sedans carry more expensive annual costs. A comprehensive policy for a used Honda Amaze can cost up to 25% more than the market average, while a plan for a new Honda Amaze costs at least 17% more than average. HDFC's annual premiums for new sedans are the third-most expensive of any of the 16 insurers we studied.

The company's other comprehensive offering is a long-term plan, which insures your vehicle for three years instead of the single-year term offered by their standard policy. HDFC Ergo's long-term plan is only available for cars bought after September 1, 2018, but is available for sedans, SUVs and luxury cars. Long-term comprehensive coverage is an attractive option for consumers who prefer to lock in their rates for a longer term, as opposed to seeking out the cheapest policy each year.

Both of HDFC Ergo's comprehensive plans cover own damage losses due to natural and man-made calamities up to Rs. 15 lakhs, damages and liabilities to third parties, and personal accident coverage for the owner or driver of the car. None of the company's plans cover damages incurred from:

  • Depreciation
  • Mechanical or electrical breakdown
  • Driving without a valid license
  • Driving under the influence of drugs or alcohol

The most unique inclusion in both of HDFC Ergo's comprehensive plans is tyre and tube damage coverage. If your tyres and tubes are damaged in an accident, they'll cover up to 50% of the replacement cost. Fewer than half of the insurers in our study include this protection in their comprehensive plans; most make it an optional add-on or exclude it completely.

HDFC Ergo provides 16 optional add-ons to enhance your coverage, two more than the market average among Indian car insurers. Their newest and most unique add-on, JumpStart, will send assistance to restart your car battery for free. This service is only offered by HDFC Ergo, and is extremely useful for policyholders who may have left their car inactive for a long period of time during the global pandemic.

The company also has a small repairs claim option, and is one of just six insurers in our study to offer this service as an add-on. For minor accidental damages, they will pick your car up, have it repaired, and deliver it back to you by morning.

Add-On CoverageAvailability
Depreciation CoverageAvailable
Engine & Gear Box ProtectionAvailable
Consumable Expense CoverageAvailable
Conveyance BenefitAvailable
Key & Lock ReplacementAvailable
Roadside AssistanceAvailable
Invoice Price CoverageAvailable
Electrical Accessories CoverageAvailable
Non-Electrical Accessories CoverageAvailable
Personal Accident Coverage (Passenger)Available
CNG Kit CoverageAvailable
Legal Liability For Paid Driver/WorkerAvailable
No Claims Bonus ProtectionAvailable
Small Repair ClaimsAvailable
Daily Cash AllowanceAvailable
EMI ProtectionUnavailable
Road Tax CoverageUnavailable
Ambulance Expense CoverageUnavailable
Hospital Cash AllowanceUnavailable
Medical Expense CoverageUnavailable
Personal Belongings CoverageUnavailable
Loss of License/Registration ReplacementUnavailable

To better help consumers fit HDFC Ergo's annual premiums into their budget, seven potential discounts are available, including a multi-vehicle discount. Among the insurers in our study, only HDFC Ergo offers this discount, and the savings continue to grow as you add more cars to your policy.

Car NumberDiscount

The company's most useful discount is a voluntarily increased deductible, where the policyholder pays a higher deductible in exchange for a lower annual premium.

DeductibleAnnual Premium Discount

In the event of an accident, policyholders who have opted for the voluntarily increased deductible add-on will be liable for a larger out-of-pocket cost than the standard policy normally requires. However, in exchange, you'll receive a discount on your annual premium price, starting at 20%. This add-on is best suited for safe and experienced drivers with little-to-no accident history, since there is a much lower probability that they will be involved in an accident.

No Claims BonusYes
Voluntarily Increased DeductibleYes
Auto Association MembershipYes
Anti-Theft DeviceYes
Vintage CarYes
Vehicle Modified for HandicappedYes
Personal InformationNo
Specific LocationNo
Credit ScoreNo

HDFC Ergo Third Party and Standalone Plan Benefits

HDFC Ergo offers two alternatives to their comprehensive plans - a third party liability only policy and a standalone own damage policy - if you're seeking a cheaper policy, or only need a smaller scope of coverage.

Their third party policy includes coverage for damages to third party vehicles or properties and for injury or death of a third party due to an accident, but does not provide coverage for any damage to your car or yourself as the owner or driver. You are also unable to include any add-ons or apply any discounts to this plan.

The Indian government regulates third party coverage pricing and terms, including the policy offered by HDFC Ergo, so all third party plans from all insurers will cost the same annually.

Engine Capacity (cc)Annual Premium
< 1,000cc₹2,072
1,000cc - 1,500cc₹3,221

HDFC Ergo's standalone, own damage plan is the opposite of the third party plan: it covers damages to your car and injuries to yourself as the owner or driver, but does not provide coverage for damages to any third party. Since third party insurance is the minimum level of car insurance required by the Indian Government, you must have an active third party policy to be approved for the standalone plan. Unlike the third party policy, you can customize your coverage and include add-on benefits, as you would with a comprehensive plan.

Annual premiums for the standalone policy start 35% cheaper than premiums for the comprehensive plan, but keep in mind you'll also have to pay a separate premium for your required third party insurance.

Comparing Reliance against the Market

HDFC Ergo's customers have awarded them with 4.4-of-5 stars on PolicyBazaar and a perfect five-star rating on InsuranceDekho. Their policyholders are most satisfied with the wide-range of discounts and add-ons, and are also highly impressed with the company's excellent claim assistance process. HDFC Ergo's cashless repair network includes over 6,800 garages, the second-most of any insurer we studied, so you can be sure to find a convenient location for repairs.

The company's 98.8% claim settlement rate is the second-highest among insurers in our study, so it's highly likely that your claim will be settled in a timely fashion. HDFC Ergo also boasts an 82% incurred claims ratio (ICR), which indicates a strong ability to settle claims against annual premium collection. The healthy and optimal range for a car insurer is 75-90%, and HDFC Ergo's ICR is one of the best we analysed.

Car Insurance Companies ICR
Car Insurance Companies ICR

The International Alternative Investment Review (IAIR) awarded HDFC Ergo with the Best General Insurance Company in India award in both 2013 and 2014, and they're iAAA-rated by the Investment Information and Credit Rating Agency of India Limited (ICRA), meaning they have an extremely strong claims-paying ability. HDFC Ergo has also earned an ISO 9001:2008 certification for their outstanding success in customer and claims management, so their policyholders can feel confident that their dedicated insurance agent will be knowledgeable and available to assist in any situation.

HDFC ErgoMarket Average
Market Share4.68%3.57%
Incurred Claims Ratio82%90%
Claim Settlement Rate98.8%94.3%
Cashless Garages6,8003,870
PolicyBazaar Star Ratings4.4 (62 reviews)4.2 (22 reviews)
InsuranceDekho Star Ratings5.0 (196 reviews)4.9 (167 reviews)

Customers have noted a few drawbacks with HDFC Ergo's insurance policies, such as a slow claims process and long lead times for car repairs. To improve on the slow claims process, the company has introduced the ability to file and check the status of a claim instantly via their website or mobile app. To speed up the repairs process, HDFC Ergo has introduced the small repairs claim add-on, where they'll pick up your car, have it repaired overnight, and return it by morning.

Online Car Insurance Buying Platform

HDFC Ergo's step-by-step online buying process is fast, smooth, easy-to-navigate, and one of the best and most user-friendly platforms we studied. The tool provides a status tracker, so you know how much time you need to allocate to buying a policy and exactly how many steps remain before you're fully insured. Consumers can apply discounts and select add-ons during the quoting process, whereas most insurers require a visit to a branch or a phone conversation with a licensed agent to do so.

HDFC Ergo also provides the option to send you a quote via WhatsApp, a feature offered by just four of the 16 insurers we studied, and their detailed premium widget allows you to view a cost breakdown of each aspect of your policy.

The company's website has a helpful insurance calculator, so you can properly estimate your annual premium before beginning the quoting and purchasing process. The site also contains a plan comparison chart, so you can determine which of their four insurance packages fits your needs best, and a garage locator, so you can ensure one of their over-6,800 cashless garages is in your area. If you need any assistance along the way, you can take advantage of their live chat feature, which will connect you with an agent to answer any questions you may have.

One of the few drawbacks of HDFC Ergo's website is that it's a bit overwhelming at first, since there is a large amount of information squeezed onto a single page. Visitors may also become frustrated with pop-ups. If you navigate to HDFC Ergo's website and leave the page open, but navigate to a new tab on your internet browser, when you return to HDFC's page, a pop-up will appear, asking which type of insurance you're most interested in.

Claims Settlement Process

HDFC Ergo allows their policyholders to submit claims 24/7 through their app, online, and over the phone, and they make it easy to track the status of an open claim on their website. Since the introduction of their mobile app, nearly 50% of claims are settled the same day they're filed, and they'll send you an SMS every time there is an update to your claim.

Mike Wagenman

Mike Wagenman is a Senior Research Analyst at ValueChampion India, specializing in insurance. He holds a Bachelor of Arts degree in Communication and Business from Rider University, and his prior work experience includes data, revenue, and business analysis in the international travel and technology markets. Mike has worked with clients around the world to help identify financial value and find the most optimal way to achieve success.