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HDFC ERGO Comprehensive Car Insurance Add-ons

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Published on August 30, 2021. EST READ TIME: 3.5 minutes

Think of a rainy day and you have a choice between a flimsy jacket and a raincoat. What are you going to choose? The latter obviously, as it will protect you way better! The same logic holds true for car insurance. That’s because comprehensive insurance protects you way better than just a third-party liability cover, especially in case of an accident. Comprehensive car insurance, unlike third-party liability cover, comes with a host of features that provide all-round coverage to you and your vehicle. These optional additional covers are called add-ons. To know more about them and choose wisely, read on.

What are add-ons in car insurance?

Add-ons are additional, optional covers that you can opt for along with your comprehensive car insurance policy, to enhance the protection that your policy offers. With comprehensive car insurance, you get financial protection against the damage done to your own vehicle in case of an accident or natural or manmade disaster. It also protects you against the theft of your vehicle. However, certain specific scenarios that fall through the cracks of this coverage are covered by add-ons.

Here’s a look at the add-ons offered along with HDFC ERGO comprehensive car insurance:

1. Zero depreciation cover

   During the replacement or repair of parts in a certified garage, the insurer pays the cost of the new component minus the depreciation cost. This depreciation cost is borne by the policyholder. Depreciation implies the decline in the car’s value with time. A depreciation of 5% is applied in the first year, and it can go up to 50% if a vehicle is more than 10 years old. The depreciation rates for different parts are:

   Paint work – 50%

   Rubber/Nylon/Plastic – 50%

   Fibre glass – 30%

   Glass – 0%

   Say you make a claim for paintwork for a damaged component, the insurer will pay 50%, while you need to pay the other 50%. However, with a zero-depreciation cover, the insurer will pay the entire amount, so you don’t need to bear anything out-of-pocket.

2. Return to Invoice

   Your car is assigned an IDV (Insured Declared Value) at the time of renewal. This is the maximum amount you can claim from the insurer in case of theft or damage beyond repair. The maximum IDV reduces as a result of depreciation every year. For new vehicles, this can be a problem, given that if it gets stolen or damaged beyond repair, you end up with immediate loss (the difference between the amount you paid for the car and the IDV), and no car.

   This is where a Return to Invoice add-on can help as it will fetch you the on-road price for the car in case of total loss or theft, ensuring you don’t suffer any monetary loss.

3. Engine and gear box protection

   Under standard car insurance policies, the engine and gearbox are excluded from coverage, given its complex nature and tendency to malfunction. The engine is the heart of your vehicle, made up of mechanical, movable components that are prone to wear and tear and the damaging effects of natural elements.

   These damages are often expensive to fix, and can result in huge out-of-pocket expenses. Luckily, the engine and gear box protection add-on covers you against any damage to your engine components in accidental and consequential cases.

4. Emergency Assistance cover

   This add-on provides round-the-clock emergency assistance to deal with any technical or mechanical breakdown of your vehicle. They often include towing, tyre repair, lost key assistance, refuelling, arranging for a mechanic, etc. –small things that can cause major inconveniences.

5. Downtime Assistance cover

   When your car is in the garage, it leaves you with no means of personal transportation. So, if you have a single vehicle, and public transportation is inconvenient or unavailable, this cover is for you. While your car is in the garage for repairs, the Downtime Assistance cover will provide a pre-determined amount to you every day to help with transportation inconveniences.

6. No Claim Bonus cover

In case of comprehensive car insurance, you are rewarded for not making a claim. This is in terms of a discount on your next renewal that the insurer offers for good driving behaviour. The No Claims Bonus accumulates with every consecutive claim-free year, going up to 50% in 5 claim-free years. However, if you meet with an accident and have to file a claim, the NCB is reset to zero.

The NCB add-on allows you to file a claim without resetting the bonus to zero. You get the benefits of the insurance policy while also enjoying the No Claims Bonus discount.

All in all, with a healthy array of add-on choices, HDFC ERGO helps you make your comprehensive car insurance more holistic and powerful. All you need to do is select the add-ons that best suit your requirements, so that your premium doesn’t shoot up unnecessarily.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

 

RELATED ARTICLES 

Why do I need Comprehensive cover for Car Insurance?

What Are The Benefits Of Buying A Comprehensive Motor Insurance Policy?

Which Plan Suits You Better: Zero Depreciation Or Comprehensive Insurance Cover?

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