Archive · 2 Jun 2025
EV Insurance in India: Surge in Demand, Key Factors and Trends
More and more people in India are buying insurance for their electric vehicles (EVs).
The number of EV insurance policies has grown a lot recently, especially in big cities.
This includes cars and scooters.
Insurers are making special policies to protect EVs from things like battery problems, which are different from gas-powered cars.
While EV insurance is growing, the cost is similar to regular car insurance.
The government is also helping by offering benefits for EV buyers, which encourages more people to get insurance.
EV insurance policies have surged in India, with a 16-fold increase in the last three years.
Two-wheeler EV insurance is also rising, with scooter policies dominating the market.
Adoption is concentrated in urban areas, with tier-1 cities accounting for a majority of policies.
EV insurance considers unique risks like battery damage and charging issues.
Premiums are comparable to traditional vehicles, and add-ons like battery protection are in demand.
- Who
- Consumers purchasing electric vehicles and insurance providers offering EV-specific policies.
- What
- A significant rise in the adoption of electric vehicle (EV) insurance.
- When
- The surge has occurred over the past three years, with projections for further growth.
- Where
- India, particularly urban areas like Delhi-NCR, Bangalore, Pune, Chennai, and Mumbai.
- Why
- Driven by the growth of the EV market, unique risks of EVs, and government incentives.
- EV Insurance Market Share
- FY25 projection: 14%
- Policies from Delhi-NCR, Bangalore, Pune, Chennai, Mumbai
- 55%
- Electric Scooter Market Share
- 98-99%
- Tata Tigor EV Insurance Premium
- ₹31,287
- Similar Petrol Variant Premium
- ₹23,522