- Policybazaar reports a 2.5 times rise in new EV insurance purchases in 2025
- EV insurance premiums increased nearly 200%, outpacing petrol and diesel vehicles
- New petrol and diesel vehicle purchases grew under 10%, premiums up about 30%
Policybaazar has released a comprehensive report detailing key developments and trends that took place in 2025 in India's motor insurance market, highlighting a shift towards Electric Vehicles.
New EV insurance purchases rose about 2.5 times year-on-year, with EV premiums jumping nearly 200%. This is well ahead of petrol and diesel vehicles, where new purchases grew by under 10% and premium growth stayed around 30%, reflecting both faster EV adoption and higher cover values, according to Policybazaar.
Add-ons are now mainstream rather than optional. Roadside Assistance was chosen by 74% of buyers and Zero Depreciation by 60%. Covers such as Engine Protector, Consumables, and Key or Lock Replacement were taken by about 25%, while RTI stood at 12%.
For brand-new vehicles, protection was far more comprehensive, with Zero Depreciation at 96%, Roadside Assistance at 83%, Consumables at 74%, RTI at 67%, and Engine Protector at 61%.
Shifting scenes in India's motor insurance market. (Source: Policybaazar Report)
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
