As electric vehicle (EV) adoption grows across India, the demand for EV insurance has seen a dramatic rise. According to a report by Policybazaar, the share of insurance for electric cars has increased from a mere 0.5% in FY23 to 14% by March 2025. This shift reflects the rapid adoption of EVs, with a 16-fold increase in EV insurance over the past three years.
Delhi-NCR has emerged as the leader in EV insurance, accounting for 18.3% of the market share. Other major cities like Bengaluru (16%), Pune (7.6%), Chennai (6.7%), and Mumbai-Thane (6.4%) follow closely. Together, these five cities account for 55% of all EV insurance coverage, highlighting the concentration of EV adoption in urban areas.
The data also reveals that two-wheeler EVs, particularly electric scooters, dominate the market, making up 98–99% of all insured two-wheelers. The number of insured two-wheeler EVs has doubled in the past year, growing from 10,000 policies last year to 20,000 this year. This surge indicates a growing awareness of the need for specialized insurance as more consumers make the shift to electric mobility.
Consumers are increasingly opting for comprehensive insurance plans that go beyond basic coverage. Popular add-ons include Zero Depreciation, Roadside Assistance, Battery Coverage, and Tyre Protection, all of which are designed to cater specifically to the needs of electric vehicles. These additional features reflect the growing recognition of the unique aspects of EV ownership.
Tier 1 cities, including Delhi-NCR, dominate the EV insurance market, accounting for 58% of all policies. Meanwhile, tier 2 and tier 3 cities collectively represent 42% of the market, indicating that EV insurance demand is gradually expanding beyond major metropolitan areas. As EV adoption continues to rise, the need for tailored insurance solutions is expected to grow alongside it.
