Acko vs HDFC ERGO – Which Car Insurance is Best for You?

As a car owner, selecting the right insurance policy is crucial because your insurer plays a key role in resolving disputes from road accidents. Though there are 32 general insurance companies with car insurance plans in the market, Acko and HDFC are two of the top choices of many customers because of their enhanced coverage offerings and good customer service.

To understand which car insurance company is right for you, let’s look at the detailed offering under both HDFC ERGO and Acko below. 

Overview of The Competitors

HDFC ERGO General Insurance

HDFC ERGO is certainly one of the biggest insurance service providers in India that offers various types of general insurance plans like health, car, bike, travel insurance facilitated by excellent customer service. It has a 24-hour claim assistance service and boasts a claim settlement ratio of 100% in the financial year 2023-2024.

Acko General Insurance

Acko is a digital first insurance company where there is no paperwork involved. By avoiding extensive operational costs, Acko thus offers more favorable premiums although the coverage can be limited. The fact that it boasts of a 100% online claim process to facilitate the timely processing of claims, makes it ideal for tech-savvy car owners.

Types of Insurance Plans Offered

HDFC ERGO

HDFC ERGO focuses on a wide range of insurance options, including:

• Vehicle Insurance (Cars and Two-Wheelers)
• Health Insurance
• Travel Insurance
• Home Insurance
• Bicycle Insurance

Acko

Acko primarily focuses on digital and simplified plans, including:

• Car/ Taxi Insurance
• Bicycle Insurance
• Health Insurance
• Digital Device Insurance

Key Comparison Parameters

To decide on which of the two insurers is best suited for you, we look at the following factors as we compare the two providers.

1. Claim Settlement Ratio (CSR)

Credible insurance companies have their Claim Settlement Ratio (CSR) that identifies the number of claims an insurer has settled in a given calendar year.

• HDFC ERGO: With a recorded CSR of 100%, HDFC ERGO is known for being a customer focused company.
• Acko: Acko boasted an overall claim settlement ratio of 98%.

Winner: HDFC ERGO.

2. Network of Cashless Garages

In emergencies, the multiple cashless garage options are always beneficial. A wider cashless garage offering means that the customers will not have issues in finding the nearest garage where their vehicle breaks down.

• HDFC ERGO: Over 8,000+ cashless garages across the nation.
• Acko: With over 2,000+ affiliated cashless garages, the company is targeting major metro cities.

Winner: HDFC ERGO (for wider options).

3. Add-On Covers

Add ons are extra benefits that a policyholder can choose to enhance their policy coverage by paying a minimal additional cost.

• HDFC ERGO: Offers 7 add-ons, comprising zero dep, rescue, and engine cover.
• Acko: Provides 14 add-ons, including key replacement, consumables cover, and return-to-invoice.

Winner: Acko (for more variety).

4. Customer Ratings

Customers’ reviews relate to the level of satisfaction and the quality of services provided by an insurer.

• HDFC ERGO: Rated 4.4/5 by users.
• Acko: It has a rating of 4.7/5, slightly higher due to its seamless digital experience.

Winner: Acko.

5. Claim Processing Time

Companies that have a lower claim processing time are generally preferred by customers.

• HDFC ERGO: HDFC ERGO processes the claims within 30 days.
• Acko: Acko also handles claims within 30 days with some being handled even faster since the company is more digital than traditional.

Winner: Tie.

6. No Claim Bonus (NCB)

The No Claim Bonus rewards policyholders for the years that they had not lodged any claims with a discount on renewal. Both insurers provide similar NCB slabs:

Winner: Tie.

7. Affordability

• HDFC ERGO: Premiums are slightly higher as there is comprehensive coverage, and the service providers play a very active role in delivering the services like customer support, cashless garage options, etc.
• Acko: Benefitting from its digital operations, it aims at offering more affordable premiums to its clients in a manner that is easy on the pocket of young or first time buyers.

Winner: Acko.

Who Should Choose Acko?

Acko is ideal for:

• Drivers who are seeking cheap prices for their premiums and quick and easy processing of their claims.
• Ideal for youngsters and those looking for a simplified policy management process at their fingertips.

Who Should Choose HDFC ERGO?

HDFC ERGO is best for:

• Suitable for people looking for wider cashless garages across their cities.
• Suitable for people looking for various add ons to enhance their policy coverage like engine protect, gear protect, etc.
• Those who select hybrid service delivery methods, both online and offline.

Acko Vs HDFC: Comparison Table

Which Insurer Offers The Best Claim Settlement?

To understand which insurer offers the best claim settlement, one must take a look at the Claim Settlement Ratio (CSR). A CSR score indicates the percentage of claims an insurance company has settled in a year to the number of claims received. Insurers with higher CSRs are considered to offer hassle-free claim settlement. In India, the following insurance companies have the best CSRs.

Is Acko or HDFC ERGO More Affordable?

When deciding on insurers, affordability can be a dealbreaker. Both HDFC Ergo and Acko offer attractive car insurance covers at competitive premiums. Acko offers car insurance with premiums starting at ₹2094. This price may vary according to the different Acko car insurance policies. HDFC ERGO’s car insurance premiums start at  ₹2551. Although Acko car insurance premiums are lower, it’s CSR is 99.1% while HDFC ERGO has a CSR of 100% which indicates better claim settlement ratio. So, although Acko is the more affordable car insurance provider, HDFC ERGO has better CSR with slightly higher-priced insurance premiums. When it comes to affordability, Acko car insurance is the clear winner.

Also Read: 

Is It Mandatory To File An Fir Before Claiming For Insurance

Everything You Need to Know About Private Car Insurance

Conclusion

Both Acko and HDFC ERGO offer excellent car insurance solutions, but their strengths cater to different customer needs. Acko shines in affordability and digital-first convenience, while HDFC ERGO excels in reliability, extensive network coverage, and customer support.

When selecting an insurance provider, consider your priorities—whether it’s cost-effectiveness, ease of digital access, or comprehensive coverage. Both companies are reputable, ensuring that your choice will secure your car and peace of mind.

FAQs

1. Which insurer is better for affordable premiums, Acko or HDFC ERGO?

Acko is better for cheap premiums as it has no overhead costs because the company works online. This means that insurance companies can provide cheaper rates for insurance policies that they avail without significantly sacrificing coverage.

2. Does HDFC ERGO have a better claim settlement ratio than Acko?

Yes, HDFC ERGO stands at 100% for the claim settlement ratio while Acko has settled at 98%. This goes well with the company’s past performance of handling claims and disposing of them within the minimum time possible.

3. Which company offers more add-ons for car insurance?

Acko offers to choose from more add-ons (14) than HDFC ERGO offers (7). For additional coverage, Acko offers the flexibility that some other car insurers don’t have and some include key replacement and loss of personal belongings.

4.  How do the network garages of Acko and HDFC ERGO compare?

Currently, HDFC ERGO customers have access to over 8000+ cashless garages across the length and breadth of India, and Acko customers have access to over 2000+ garages, mainly in the metro cities.

5. Can I manage my policy digitally with both insurers?

Yes, Acko does have an online portal for managing policies and so does HDFC ERGO. But here Acko really shines in delivering a 100% digital service where consumers can buy and renew policies and have their claims processed digitally.