Comparing the Four-Wheeler Insurance: Tata AIG vs HDFC Ergo Car Insurance

 

When buying car insurance, it is essential to screen and compare the top insurance companies in the market. Since many insurance companies in India offer car insurance, it makes complete sense to go through their respective policy benefits, costs and other factors to determine which company is best suited for your particular needs.

Of all the companies that offer four-wheeler insurance, there are some which stand heads and shoulders above others. Tata AIG and HDFC Ergo are two of the most popular and reliable car insurance providers in India that offer the most competitive old and new car insurance rates.

Tata AIG was founded in 2001 and has since managed to dominate the car insurance market in India. This world-renowned company has quickly grown to be the most preferred car insurance providers in the country within such a short period of time. This is largely due to its stellar reputation of processing claims in a timely and hassle-free manner. After all, the ‘Tata’ name is synonymous with years of trust and excellent customer service.

Similarly, HDFC Ergo is also a top-notch insurance company that was established in 2002. For some car owners in the country, HDFC Ergo is known as a company that provides the best car insurance in India at a highly competitive price-point.

While both of these renowned insurance companies offer similar plans and services, there are a few subtle differences between the two. When deciding which of these companies to opt for, there are some important factors that are worth considering.

Tata AIG vs HDFC Ergo Car Insurance

Claim settlement ratio

It wouldn’t be incorrect to state that the reputation of a car insurance company largely depends upon the speed and efficiency with which it can settle claims. According to the General Insurance Claim Insights Handbook released by the Insurance Brokers Association of India (IBAI), the claim settlement ratio for these two companies is:

Motor Insurance Claim Settlement Ratio for the 2018-2019 Financial Year (Own Damage)
Tata AIG 91.80%
HDFC Ergo 89.48%

As you can see, the ‘Own Damage’ claim settlement ratio for Tata AIG is slightly higher as compared to that of HDFC Ergo.

Motor Insurance Claim Settlement Ratio for the 2018-2019 Financial Year (Third Party)
Tata AIG 24.58%
HDFC Ergo 21.32%

Since the ‘Third Party’ claim settlement rate is also higher, it would appear that Tata AIG is better at settling claims. This comes as no surprise as the company guarantees hassle-free claim settlements within a week.

The network of cashless garages

The introduction of cashless garages has completely transformed four-wheeler insurance in India. Gone are the days when you would have to pay for car repairs out of your own pocket and then go through the tedious process of claiming reimbursements from your insurance company later.

Nowadays, almost all car insurance companies in India offer a network of cashless, partner garages where you can get your car repaired in case of any accidental damages. You don’t have to pay a single rupee in these garages as all payments are directly handled by the insurance company.

Here’s how Tata AIG and HDFC Ergo compare when it comes to their respective network of cashless garages: 

Number of Cashless Garages in India
Tata AIG 3000+
HDFC Ergo 1600+

Here too, Tata AIG edges out HDFC Ergo by a comfortable margin. However, when deciding which one is more suitable for you, do remember to check which company has more cashless garages in your immediate vicinity as well as on your most-travelled routes.

Add-ons Offered

Companies that sell the best car insurance in India generally offer various add-ons to help extend the coverage provided by your car insurance policy. You can customize your policy by choosing from a wide range of add-ons that meet your requirements. The Add-ons provided by these two companies include:

Add-on Covers
Tata AIG
  • Depreciation reimbursement cover
  • No Claim Bonus (NCB) protection cover
  • Engine secure cover
  • Tyre secure cover
  • Repair of glass, plastic, fibre and rubber body parts
  • Return to invoice
  • Consumables expenses cover
  • Emergency transport and hotel Expenses
  • Loss of personal belongings cover
  • Key replacement
  • Roadside assistance
HDFC Ergo
  • Zero depreciation cover
  • No Claim Bonus (NCB) protection
  • Emergency assistance cover
  • Key replacement
  • Cost of consumable items cover
  • Engine and gearbox protection cover
  • Return to invoice

 

Both companies offer a wide range of add-ons, and you should pick the one that offers the most number of add-ons that can benefit your specific situation.

Summing up

Ultimately, a car insurance policy is vital for protecting your financial interests. While the legally mandated third-party insurance covers all kinds of third party liabilities, a comprehensive car insurance policy also protects your car from any losses or damages that arise due to man-made or natural causes such as accidents, theft, vandalism, floods, earthquakes or the like.

To choose the right car insurance for your four-wheeler, it is important to compare various companies to ascertain the features, benefits and four-wheeler insurance rate offered by each. You can only make an informed choice when you have a good understanding of what is being offered and whether it suits your particular needs. With these car two insurance providers, you just can’t go wrong.

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