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Car Insurance Renwal : HDFC ERGO Vs TATA AIG

The day he started working, Prateek knew that his first big investment would be his own car. He spent months researching the best deal he could get, given his preferences. He collected statistics like mileage, ground clearance, etc., and went on test drives for the cars he had short-listed. About one and a half years after his first day at work, he finally bought a mid-size sedan. Now, for someone who clearly identifies as a car lover, he was not going to take any decision lightly. Today, he has been driving his car for almost four years, and he makes sure to look into the minute details each year before renewing his car insurance policy.

The Right Choice for You

There are numerous can insurance providers that you can choose from. Most of them operate offline and online, where you can get quick quotes for a car renewal insurance policy and complete the process in a few easy steps. While all the insurance providers are regulated by the Insurance Regulatory and Development Authority of India (IRDAI) and follow its guidelines, there are considerable variations in their services that you should look into before zeroing in on the provider to renew your car insurance.

HDFC ERGO and Tata AIG Car Insurance – Companies at a Glance

ParameterHDFC ERGOTata AIG
IRDAI RatingiAAAiAAA
Network Garages8000+7500+
Motor Claim Ratio (2019-20)79.21%80.29%
Emergency AssistanceAvailable 24*7Available 24*7

Source: Compiled with the help of various websites such as HDFC and TATA AIG

HDFC ERGO Car Insurance

HDFC ERGO Insurance Company is a collaboration of two companies, viz. HDFC Ltd. and ERGO International AG, a Germany-based company. It commenced operation in 2002 and is one of the most popular private sector insurance providers. With various amenities like overnight car repair service and settlement of minor claims in less than 30 minutes, HDFC ERGO aims to put smiles on their customers’ faces. In under 3 minutes, you can process an HDFC ERGO car insurance renewal from their official website or a trusted third-party website.

Tata AIG Car Insurance

One of India’s most popular car insurance providers, Tata AIG Car Insurance, claims to have served five crores plus customers since its inception in 2001. The company is a merger of two finance giants, i.e., the TATA group and the American International Group. TATA AIG car insurance renewal can be processed in 3 easy steps online on their own website. Their advanced digital infrastructure provides a smooth experience while buying the policy and making claims. You may also purchase their policy via a trusted third-party website.

Plans Provided by HDFC ERGO and Tata AIG

In India, many policy providers offer three kinds of car insurance plans: third-party car insurance, a standalone own damage plan, and a comprehensive plan.

Third-party car insurance is mandated by law and provides insurance against any liabilities to the third party in case of damage caused by the insured car. A standalone own-damage car insurance plan can be bought in addition to the third-party insurance plan to protect your car against theft, accidents, etc. A comprehensive plan, on the other hand, gives you the benefit of both third-party and standalone own-damage insurance, along with the benefit of providing cover for personal accidents.

Both HDFC ERGO and Tata AIG provide these three plans. Both the companies do not provide any add-ons with the third-party insurance plan. Even though the plans might be similar in nature, you should make sure that your car renewal insurance policy decision is based on the services and add-ons the company offers. A comparison of the comprehensive plan should come in handy to make this decision.

Comprehensive Plan – HDFC ERGO vs. Tata AIG

Both the companies comply with IRDAI rules, and hence the plans are similar in nature. Take a look in detail at the inclusions of the comprehensive plans by both the companies:

  • Damage to the insured vehicle owing to natural calamities – earthquake, cyclone, floods, etc.
  • Damage to the insured vehicle owing to various events like – fire, theft, etc.
  • Personal Accident Cover of Rs. 15 lakhs
  • Claims related to damage to a third-party vehicle or property
  • Claims related to bodily injuries to a third-party
  • Customization of car value

Now, have a look at the exclusions of the plans:

  • Does not include cases of war, nuclear risk, etc.
  • In case the insured driver’s license is invalid, the policy, in turn, will also be considered invalid.
  • Accidents arising due to alcohol or intoxication do not fall under the purview of the policy.
  • Accidents outside the predetermined geographical location will not be considered.

Since both the companies provide similar benefits, how should you choose between them? Have a look at the add-ons that these companies provide. Given that the premium rates are competitive between the two companies, your choice should be based on your personal needs and preferences.  

Add-Ons

Tata AIG Car InsuranceHDFC ERGO Car Insurance
1.     Nil Depreciation Cover2.     Return to Invoice Cover3.     Daily Allowance Cover4.     Loss of Personal Belongings Cover5.     No Claim Bonus Protection Cover6.     Repair of Glass, Fibre, Plastic, and Rubber Parts Cover7.     Emergency Transport and Hotel Expenses Cover8.     Key Replacement Cover9.     Engine Secure Cover10.  Hire Car Cover11.  Tyre Secure Cover12.  Roadside Assistance Cover13.  Consumable Expenses 1.     Zero Depreciation Cover2.     Engine and Gearbox Protector3.     No Claim Bonus Protection Cover4.     Consumables Cover5.     Return to Invoice Cover6.     Emergency Assistance Cover

Sources:  HDFC and TATA AIG

Additionally, you can claim personal accident cover in case of bodily injuries during an accident while driving or being a co-driver in the insured car.

The Bottom Line

When there are many options in the market, one relies on reputed names to be on the safe side. If you’re still confused about which one to choose between, TATA AIG car insurance renewal or HDFC ERGO car insurance renewal, be sure to compare both for prices, offers, etc. 

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