Understanding Car Insurance

Car Insurance provides insurance coverage for your car from unforeseen risks which may cause damage to your car or may subject you to claims from third party in event of accident. In India it is mandatory under law for all car drivers to have a valid car insurance at all times. Car insurance is available in three forms

  • Third Party Liability

  • Standalone Car Insurance Plan

  • Comprehensive Car Insurance Plan

As per the Supreme Court Order, all cars bought after September 1, 2018 should have a long term third liability coverage with a tenure of 3 years.

Why Should I Buy Car Insurance?

Just as every little thing that you own is nurtured and protected, your car also needs to be safeguarded against the effects of accidents, natural calamities, theft, and malicious damage. Imagine, in a world where minor repairs and maintenance costs you a lot, what would be the stretch of expenses that you may have to make if your vehicle is stolen or gets damaged totally? Your finances go for a toss as you will have to bear the expenses for repairing it. To avoid such a financial loss and stay protected, it’s advisable to buy a car Insurance plan. Also under Motor Vehicle (Amendment) Act 2019 it is mandatory that all the motorists to have a valid motor insurance for their vehicle at all times.

Car Insurance Quote

Now no more hassles and delay in getting quotations for your car insurance premium. With services like online car insurance quotes, you can be assured of getting premium for your car insurance policy instantly thereby saving your time and efforts. Car insurance premium is calculated based on various factors like Make and Model, Year of Manufacture, Engine Capacity., Location, Driving Record. To get car insurance quotation click here.

Car Insurance Plans

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Single Year Comprehensive Car Insurance
  • This Insurance wraps your car in a secured blanket of coverage. It offers cover for your car damages, third party liabilities, and personal accident for 1 year.
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Standalone Own Damage Cover - Private Car
  • Your search for the right only own damage cover for your car ends here with our standalone car insurance plan for covering losses incurred to your own car only
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Long Term Comprehensive Car Insurance
  • Secure your brand new car in a blanket of coverage. We offer long-term protection to your car. Be it your car's own damage, third party liabilities, and personal accident too.
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Third Party Liability Car Insurance
  • The third-party liability insurance offers cover for all the damages caused by your car to a third party in the event of an accident. It is a mandatory cover!

Reasons to buy HDFC ERGO Car Insurance

Save Up to 70% On Your Premiums!
Bid goodbyes to pricey premiums when you can get upto 70% discounts! Why look elsewhere, when amazing quotes are just a click away?
Go Cashless! With 6800+ Cashless Garages
6800+ Network Garages spread all over the country, isn’t that’s a huge number? Not just this, we let you register a claim via IPO app & website & we approve your claims within 30* Minutes.
Why Limit Your Claims? Go Limitless!
HDFC ERGO opens doors to unlimited claims! Though we believe you’ve been driving cautiously, however in case of any claim you wish to register, we do not restrict you.
Overnight Car Repair Services
We repair minor accidental damages from dusk to dawn without any hassle. You can simply get in touch with us; we will get your car picked at night, repair it and deliver it by morning at your door step.

Car Insurance Comparison

  Comprehensive(Single year)Comprehensive(Long Term)  Third Party (Liability Only)
Accidental Damage   
Theft   
Damage due to fire   
Damage due to natural disaster   
Personal Accident cover   
Damage to a third-party vehicle   
Injury to a third-party person   
Zero DepreciationOptional Add-onOptional Add-on 
Emergency assistance coverOptional Add-onOptional Add-on 
No claim bonus protectionOptional Add-onOptional Add-on 
Return to invoiceOptional Add-onOptional Add-on 
Engine & Gear Box ProtectorOptional Add-onOptional Add-on 
Key Replacement coverOptional Add-onOptional Add-on 
Cost of Consumable ItemsOptional Add-onOptional Add-on 
Loss of Use - Downtime ProtectionOptional Add-onOptional Add-on 

What is IDV? What are the factors deciding IDV?

The Insured’s Declared Value (IDV) of the vehicle will be deemed to be the ‘SUM INSURED’ and it will be fixed at the commencement of each policy period for each insured vehicle.

The IDV of the vehicle is to be fixed on the basis of the manufacturer’s listed selling price of the brand and the model of the vehicle proposed for insurance at the commencement of insurance /renewal and adjusted for depreciation (as per schedule specified below). The IDV of the side car(s) and / or accessories, if any, fitted to the vehicle but not included in the manufacturer’s listed selling price of the vehicle is also likewise to be fixed.

AGE OF THE VEHICLE % OF DEPRECIATION FOR FIXING IDV
Not exceeding 6 months 5%
Exceeding 6 months but not exceeding 1 year 15%
Exceeding 1 year but not exceeding 2 years 20%
Exceeding 2 years but not exceeding 3 years 30%
Exceeding 3 years but not exceeding 4 years 40%
Exceeding 4 years but not exceeding 5 years 50%

ADD On Covers

Zero Depreciation Cover

Get the Entire Amount With Zero Depreciation Cover!

Usually, your policy will only pay you the claim amount after deducting the depreciation amount. Your policy wordings will contain the details of depreciation. So, what can you do to get the entire amount? There is a way out! The zero-depreciation cover! With zero depreciation, there are no depreciation cuts, and you get the entire amount in your hands !


How does it Work? If you car is damaged and the claim amount is Rs 15,000, out of which insurance company says that you may have to pay 7000 as depreciation amount excluding policy excess/deductible. If you buy this add on cover then, the insurance company will pay the entire assessed amount. However, policy excess/deductible needs to be paid by the customer, which is quite nominal.

No Claim Bonus Protection

There’s a way you could protect your NCB

In case of claim for damage caused due to external impact, flood, fire etc to a parked vehicle or damage to windshield glass, this add on cover not only protects your No Claim Bonus earned so far, but also takes it to next NCB slab .


How does it work? Consider a situation wherein your parked car gets damaged due to collision or any other calamity, No Claim bonus protection shall keep your NCB of 20% protected for the same year and take it smoothly to the next year slab of 25%. This cover can be availed upto 3 claims during the entire policy duration.

Emergency Assistance Cover

We’ve got you covered!

We are here to offer you round-the-clock assistance to deal with any technical or mechanical breakdown issues of your car! The emergency assistance cover includes minor repairs on site, lost key assistance, duplicate key issue, tyre changes, battery jump starts, fuel tank emptying and towing charges! 


How does it work? Under this add on cover there are multiple benefits which can be availed by you. For instance, If you are driving your vehicle and there is damage, it needs to be towed to a garage. With this add on cover, you may call the insurer and they will get your vehicle towed to the nearest possible garage upto 100 kms from your declared registered address.

Return to Invoice

Offers the differential amount between the IDV and the Invoice value of the vehicle

What could be more devastating than discovering one fine day that your car has been stolen or faced a total damage? Your policy will always pay you the IDV (Insured Declared Value) of your vehicle. The IDV is equal to the current market price of the vehicle. But, with a return to invoice add-on, you get the difference between invoice value and IDV as well! You have to ensure that an FIR has been filed and the car was not recovered within 90 days after the incident .


How does it Work? If you have purchased a vehicle in 2007 and the purchase invoice was Rs 7.5 lakhs. After two years, the Insured Declared Value (IDV) would be Rs 5.5 lakhs and is damaged beyond reapir or is stolen then, you will get the original purchase invoice Rs 7.5 lakhs. In addition to this, you will get registration charges & applicable taxes as well. Excess/dectucible as per the policy schedule will have to be borne by you.

Engine & Gear Box Protector

Protects your car engine damage when water enters the engine during rains or flood

Be it the downpour of rains or the rushing flood waves, your vehicle's gearbox and the engine remains wrapped in the protective coverage of engine and gearbox protection cover! It pays for the replacement or repair of all the child parts or internal parts. Moreover, it further covers the labor costs, cost of compression tests, machine charges and engine cylinder re-boring.


How does it Work? Imagine on a rainy day due to accident, if there is damage to the engine/gear box and chances are that engine oil will start leaking. In such a situation, if you continue to drive the vehicle, engine will get seized. Such damage is a result of a consequential loss which is not covered under the standard motor insurance policy. With this Add-on cover your car’s internal parts of engine and gearbox remains protected.

Key Replacement cover

Lost/stolen keys? The key replacement cover helps you!

Did your keys get stolen or lost? This add-on will help you get the replacement keys as soon as possible!


How does it work? If you have lost or misplaced your car keys this add-on cover will act as a saviour.

Cost of Consumable Items

Here is a consumable items coverage that covers all the consumables used in your car! Yes! You need this right now! It pays for all the non reusable consumables such as nuts, bolts....


How does it work? If your car faces an accident and needs repairs, under such a scenario the non-reusable consumables may have to be bought again to fix your car. Parts such as  washers, screws, lubricants, other oils, bearings, water, gaskets, sealants, filters, and much more are not covered under the motor insurance cover & the cost is to be borne by the insured. With this add on cover we pay for the cost of such consumables and let you take it easy.

Loss of Use - Downtime Protection

Paid the Cabs While Your Car Was On Repair? Downtime Protection Is Here! Provides a cash allowance benefit incurred by the customer for use of other means of transport for daily conveyance .


How does it work? So, your vehicle got involved in an accident, and it is given for repair works! Sadly, you are left without a vehicle to travel and end up paying the cabs more! But, did you know that the loss of use-downtime protection can cover all the expenses made on cabs? Yes! It will as mentioned on the policy schedule!

Factors affecting Car Insurance Premium

  • Scope of Coverage: When you opt for comprehensive car insurance instead of just buying third party, you need to pay additional premium but the benefits far outweigh the costs as the risks covered is more than the third party coverage.

  • Fuel Type: Insurance premium for cars that run on Diesel and CNG is more than the premium for cars running on petrol.

  • Value of the Car: Insured Declared Value (IDV) is the one of the main component in determining the premium IDV is basically the current market value of car. If the current market value of the car is higher, the premium for its insurance will be more.

  • Security Systems: If you have installed components that increases the security of your car, then the insurer could take a postive view of the change and provide a reduction in the premium amount.

  • Age of the Car: Car is one of the assets whose value decrease with time, depreciation is charged which reduces the market value of car, higher the age of car, the less its market value.

  • Deductibles: There are two types of deductibles
    • Compulsory Deductible
    • Voluntary Deductible. If you opt for voluntary deductible the premium charged would be lower.

What's Included?

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Accidents

Accidents are uncertain. Did your car get damaged due to an accident? Don’t panic! We cover it!

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Fire & Explosion

Boom! Fire may hamper your car partially or totally, whatsoever be the loss due to Incidents of fire and explosion. Do not worry we can handle it.

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Theft

Car got stolen? Sounds quite unfortunate! Before you fret over it, let us inform you we will secure it!

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Calamities

Havoc due to earthquake, landslide, floods, riots, terrorism etc. may take a toll over your favourite car. Read More...

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Personal Accident

In case of injuries due to car accidents, we cover all your treatments and make sure you are healthy and Read More...

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Third Party Liability

In case your vehicle accidentally caused injuries or damages to the properties of a third person, we offer complete coverages to Read More...

Order of IRDAI on Premium Rates for Motor Third Party Liability Insurance Cover for the Financial year 2019-20 effective from 16th June, 2019

What's Not Included?

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Depreciation

We do not cover depreciation in the value of the car

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Electrical & Mechanical Breakdown

Any electrical or mechanical breakdowns remain uncovered under our car insurance policy

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Illegal Driving

Your car insurance goes out of action if you do not possess a valid driving license. Driving under the influence of drugs/alcohol Read More...

Know what the expert speaks about our car insurance plans

Mukesh Kumar | Motor Insurance Expert | 30+ years of insurance industry experience
I recommend getting your car insured from HDFC ERGO, a brand serving more than 1 crore+ customers. With overnight repair services and more than 6,800+ network garages, you can be assured of help in event of any damage to your vehicle. Also one should insure his/her vehicle and avoid getting heavily fined under the recently enacted Motor Vehicle Amendment Act 2019.
Why HDFC ERGO?

Secured Over 1 Crore+ Smiles!

Take a quick look at our customer base, and you are sure to be amazed to see 1 Crore+ smiling faces! The multitude of awards received by us including the IAAA and ICRA ratings further speak about our trustworthiness, credibility and highest claim paying abilities!
Why HDFC ERGO?

Overnight Car Repair Services

The stars might refuse to shine, but we will never refuse to repair! We repair minor accidental damages from dusk to dawn without any hassle. You can simply get in touch with us; we will get your car picked at night, repair it and deliver it by morning at your door step .We offer these services in 13 cities at present!
Why HDFC ERGO?

Transparency at its best

Transparency holds the key to our transactions, and you can be assured of getting the seamless claim procedures. With 30 Minutes*** claim approval & online claim intimation via QR code we’ve been winning customer smiles everywhere.
Why HDFC ERGO?

All the support you need-24x7

Get hassle-free support every day, every week whenever and wherever you need! With our dedicated in-house claims team and customer support, we ensure every query is responded . Isn’t that great? To know someone has your back even in the middle of the night?
Why HDFC ERGO?

Go Paperless! Go Boundless!

Why stick to age-old time-consuming paper works when HDFC ERGO can get all your works done paperless? The online transactions make you boundless and free! Your time is valued at HDFC ERGO!
Why HDFC ERGO?

Secured Over 1 Crore+ Smiles!

Take a quick look at our customer base, and you are sure to be amazed to see 1 Crore+ smiling faces! The multitude of awards received by us including the IAAA and ICRA ratings further speak about our trustworthiness, credibility and highest claim paying abilities!

Overnight Car Repair Services

The stars might refuse to shine, but we will never refuse to repair! We repair minor accidental damages from dusk to dawn without any hassle. You can simply get in touch with us; we will get your car picked at night, repair it and deliver it by morning at your door step.We offer these services in 13 cities at present!

Transparency at its best

Transparency holds the key to our transactions, and you can be assured of getting the seamless claim procedures. With 30 Minutes*** claim approval & online claim intimation via QR code we’ve been winning customer smiles everywhere.

All the support you need- 24 x 7!

Get hassle-free support every day, every week whenever and wherever you need! With our dedicated in-house claims team and customer support, we ensure every query is responded .Isn’t that great? To know someone has your back even in the middle of the night?

Go Paperless! Go Boundless!

Why stick to age-old time-consuming paper works when HDFC ERGO can get all your works done paperless? The online transactions make you boundless and free! Your time is valued at HDFC ERGO!

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Frequently asked questions

Car insurance is a type of insurance policy required to provide protection to your vehicle against any damage which might result into a financial loss. In addition to it, any third party liability which has arisen due to use of your vehicle is covered under car insurance. As per the Motor Vehicle Act, it is mandatory to buy a liability only policy without which one cannot use the vehicle on road.
A comprehensive insurance policy provides protection to your vehicle due to any impact damage, fire, theft, earthquake etc. In addition to this, it provides cover against any third party liability in terms of death, bodily injury and third party property damage.
There are two type of car insurance policies - comprehensive and liability only policy.
As per the Supreme Court directive, with effect from 1st Sept, 2018, every brand new car owner has to buy a long term policy. You may choose from the following long term policies for your prized possession:
  1. Liability only policy for 3 years policy duration
  2. Package policy for 3 years policy duration
  3. Bundled policy with 3 years liability cover and 1 year cover for own damage
Yes, the Motor Vehicle Act states that every motor vehicle plying on the road has to be insured with a Liability Only policy at the very least.
Zero depreciation is an add-on cover and has to be purchased by paying additional premium. It offers complete coverage to your vehicle without factoring into depreciation. For instance, if your vehicle is badly damaged, then you don’t need to pay for any depreciation amount and will be eligible for full claim amount subject to terms and conditions of the policy. Any excess or deductible as per the policy document has to be borne by you.
Emergency assistance is an add-on cover and has to be purchased by paying additional premium. It has multiple benefits like assistance in case of breakdown, tyre replacement, towing, fuel replacement etc which can be availed during the policy duration. Customers need to call up at the customer care number mentioned on the policy document for availing these benefits.
Quite simply, it's a discount in the Own Damage premium payable when renewing your policy after a claim-free year. It is an incentive for driving carefully and avoiding accidents.
All types of Vehicles% of Discount on Own Damage premium
No claim made or pending during the preceding full year of insurance20%
No claim made or pending during the preceding 2 consecutive years of insurance25%
No claim made or pending during the preceding 3 consecutive years of insurance35%
No claim made or pending during the preceding 4 consecutive years of insurance45%
No claim made or pending during the preceding 5 consecutive years of insurance50%
You can easily renew your expired policy online. You need to download HDFC ERGO Self Inspection application and upload the documents, once the documents are approved by HDFC ERGO, a payment link would be sent and you may make the payment to renew the policy. Once the payment is made, you will receive the policy copy.
No Claim Bonus is valid upto 90 days from the previous policy expiry date. If the policy is not renewed within 90 days, No Claim Bonus will become 0% and no benefit shall be passed on to the renewed policy.
The Insured’s Declared Value (IDV) of the vehicle will be deemed to be the ‘SUM INSURED’ and it will be fixed at the commencement of each policy period for each insured vehicle.
The IDV of the vehicle is to be fixed on the basis of the manufacturer’s listed selling price of the brand and the model of the vehicle proposed for insurance at the commencement of insurance /renewal and adjusted for depreciation (as per schedule specified below). The IDV of the side car(s) and / or accessories, if any, fitted to the vehicle but not included in the manufacturer’s listed selling price of the vehicle is also likewise to be fixed.
AGE OF THE VEHICLE% OF DEPRECIATION FOR FIXING IDV
Not exceeding 6 months5%
Exceeding 6 months but not exceeding 1 year15%
Exceeding 1 year but not exceeding 2 years20%
Exceeding 2 years but not exceeding 3 years30%
Exceeding 3 years but not exceeding 4 years40%
Exceeding 4 years but not exceeding 5 years50%
No paperwork and physical documentation are required and you will get your policy instantly.
Existing insurance policy can be transferred in the name of buyer by passing an endorsement. Supporting documents like sale deed/form 29/30/NOC of seller/NCB recovery amount shall be required to pass an endorsement under the existing policy. Or You may cancel the existing policy. Supporting documents like sale deed/ form 29/30 shall be required to cancel the policy.
You can change your policy details online through our website hdfcergo.com. Visit the 'HELP' section on the website and place a request. To place request or explore services, click here
Since Car insurance premium depends on a number of factors, it is difficult to predict whether premium for the new car would be more or one for the old car. If your new car is costly and you live in either a theft prone area or one that is affected by floods frequently then getting a comprehensive insurance plan for new car would be beneficial. If you have not raised a claim then you can get a discount on older car due to the accumulated No claim Bonus. In case of Add-On one must first have a comprehensive insurance plan, a roadside assistance plan works better for old car as they are susceptible for breakdown whereas in case of new car one can opt for Zero Depreciation cover. Repairing of the new cars is costlier in comparison to old cars therefore component of premium concerning it would be less for older cars.
As per recently passed Motor Vehicles (Amendment) Act 2019, if you are found driving withou a valid motor insurance, then you would be levied a fine of Rs 2,000 or a imprisonment of 3 months on first offence, in event of you offending a second time you could face a fine upto 4000 or could face jail upto 3 months. Also you would haver to pay damages to third party from your own pocket. You would also have to bear any damage to your car as you are not having a valid comprehensive cover.
As per recently passed Motor Vehicles (Amendment) Act 2019 and the Motor Vehicles Act 1988,it is mandatory that all motorists need to have a valid motor insurance at all times.
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