EV Insurance Demand Soars 16x in 3 Years, Delhi-NCR Leads at 18.3%
India’s growing electric vehicle (EV) adoption is driving an unprecedented surge in EV insurance demand, which has increased 16 times in just three years, according to internal data from Policybazaar. This rapid growth signals a strong consumer shift towards sustainable mobility, along with a rising awareness of tailored EV protection plans.
EV Insurance Market Growth
The share of EV car insurance policies has witnessed exponential growth:
- In FY23, EV insurance accounted for just 0.50% of total car insurance policies.
- By March 2025, this figure jumped to 14%, reflecting a massive shift in consumer preferences.
- Two-wheeler EV insurance now makes up 7-8% of all two-wheeler insurance policies under five years, doubling in just one year from 10,000 policies to 20,000.
Metro Cities Drive EV Insurance Demand
EV insurance adoption is highest in metro cities, accounting for 55% of all policies. The top five cities leading the market are:
- Delhi-NCR – 18.3% market share
- Bengaluru – 16%
- Pune – 7.6%
- Chennai – 6.7%
- Mumbai-Thane – 6.4%
Beyond metro hubs:
- Tier 1 cities dominate with 58% of policies.
- Tier 2 cities contribute 30%, while Tier 3 cities account for 12%.
EV Two-Wheelers Dominate Insurance Policies
The electric scooter segment leads the two-wheeler EV insurance market, comprising 98-99% of all insured EV two-wheelers. This indicates a strong consumer preference for insured e-scooters, ensuring financial protection against theft, damage, and unforeseen risks.
EV Owners Opting for Comprehensive Coverage
Beyond basic insurance, EV owners are increasingly purchasing comprehensive protection plans with specialized add-ons tailored for electric vehicles:
For EV Cars:
- Zero Depreciation
- Roadside Assistance
- Battery Cover
- Key & Lock Replacement
- Consumables Cover
- Invoice Price Protection
- Tyre Protection
For EV Two-Wheelers:
- Battery Protector (for theft or damage)
- Charger Cover
- Zero Depreciation & Roadside Assistance
What This Means for India’s EV Ecosystem
The accelerating demand for EV insurance reflects India’s commitment to green mobility, with increasing consumer confidence in EV ownership. As the industry expands, insurance companies are adapting with EV-specific policies, ensuring robust protection for electric vehicles.
