EV insurance demand increased 16 times in three years

Demand for electric vehicle (EV) insurance has dramatically increased, growing 16 times in three years. Internal data from Policybazaar shows that the share of EV insurance policies rose from just 0.5% in fiscal year 2023 to about 14% in March 2025. Amit Chhabra, Chief Business Officer of General Insurance at Policybazaar, noted that this trend reflects India's move towards sustainable transportation. More consumers are adopting electric vehicles and recognizing the need for specific insurance protections. The company's data also reveals that insured two-wheeler EVs now make up about 7-8% of all two-wheeler insurance policies. The number of these policies has doubled in the past year, from 10,000 to 20,000. Electric scooters dominate this category, accounting for nearly all insured two-wheelers. Demand for EV insurance is concentrated in major cities. Delhi-NCR leads with an 18.3% market share, followed by Bengaluru at 16%, Pune at 7.6%, Chennai at 6.7%, and Mumbai-Thane at 6.4%. Tier 1 cities make up 58% of the overall EV insurance market. Consumers are increasingly opting for comprehensive insurance packages that provide extra protection. Popular add-ons for EV cars include Zero Depreciation, Roadside Assistance, and Battery Cover. For two-wheeler EVs, additional options include Battery Protector and Charger Cover.