Archive · 30 Dec 2025
India's 2025 Motor Insurance Shift: EVs and Savings
In 2025, motor insurance in India changed a lot.
More people are buying electric vehicles (EVs), and they need special insurance for these cars.
The cost of insuring EVs went up a lot, more than the cost of insuring regular cars.
People are also choosing better insurance plans that cover more things, like wear and tear.
A new way to pay for insurance, called Pay-As-You-Drive, is becoming popular.
This lets people save money if they don't drive much.
The most insured cars and bikes this year include models like the Maruti Swift and Honda Activa.
EV motor insurance purchases grew nearly 2.5 times year-on-year in 2025.
Premiums for EV insurance surged by 200%, outpacing traditional vehicle segments.
96% of new car buyers opted for zero depreciation coverage to protect against wear and tear.
20% of customers adopted the Pay-As-You-Drive model, saving 25-30% compared to standard plans.
Top insured models include the Honda Activa, Maruti Swift, and Tata Nexon.
- Who
- Indian drivers and car owners
- What
- Shift in motor insurance trends, including EV insurance growth and adoption of Pay-As-You-Drive models
- When
- In 2025
- Where
- India
- Why
- Due to the surge in electric vehicles and a newfound appetite for data-driven savings
- EV Insurance Growth
- 2.5x year-on-year
- EV Premium Surge
- 200%
- Zero Depreciation Coverage
- 96% of new car buyers
- Pay-As-You-Drive Adoption
- 20% of customers
- PAYD Savings
- 25-30% compared to standard plans
- Top Insured Two-Wheelers
- Honda Activa, TVS Jupiter, Hero Splendor Plus, Royal Enfield Classic
- Top Insured Four-Wheelers
- Maruti Wagon R, Maruti Baleno, Maruti Swift, Tata Nexon, Hyundai i20, Mahindra XUV 3XO, Mahindra XUV700, Hyundai Creta, Tata Punch