EV insurance demand rises, Delhi-NCR in lead: Policybazaar Report

The percentage of insurance for electric cars has increased from 0.5% in FY23 to 14 per cent in March 2025, according to data by Policybazaar, ANI reported. 

The update is a result of the rising EV adoption in the nation which has marked a 16 times jump in the last three years.

Citing Amit Chhabra, CBO of General Insurance at Policybazaar, ANI reported, "The accelerating adoption of EV insurance signals India's shift toward sustainable mobility. With EV insurance share growing nearly 16-fold in just three years, consumers are not only adopting electric vehicles but also recognizing the need for tailored protection."

According to the company's internal insurance sales data, reservations for insured two-wheeler EVs made up 7–8% of all two-wheeler insurance plans during a five-year period.

According to the company's data, the number of insurance has increased from 10,000 last year to 20,000 this year, and the percentage has more than doubled.

This market sector is dominated by electric scooters, which account for 98–99% of two-wheelers with insurance.

The five largest metropolises—Delhi-NCR, Bengaluru, Pune, Chennai, and Mumbai-Thane—are where EV adoption is concentrated, and they also accounted for 55% of all EV insurance coverage acquired.

With a noteworthy 18.3% market share, Delhi-NCR was followed by Bengaluru (16%), Pune (7.6%), Chennai (6.7%), and Mumbai-Thane (6.4%).

With 58% of all plans, the data indicates that tier 1 cities control the majority of the EV insurance market. The statistics show that tier 2 and tier 3 cities make up 30% and 12% of the total, respectively.

According to the data, EV buyers are increasingly choosing comprehensive insurance plans that provide extra protection in addition to basic coverage.

Zero Depreciation, Roadside Assistance, Battery Coverage, Key & Lock Replacement, Consumables, Invoice Price Protection, and Tyre Protection are popular EV accessories.

In addition to more popular add-ons like Roadside Assistance and Zero Depreciation, two-wheeler EVs can benefit from accessories like Battery Protector and Charger Cover, which are made especially for electric vehicles.