The India motor insurance market size reached around USD 12.57 Billion in 2025. The market is projected to grow at a CAGR of 10.40% between 2026 and 2035 to reach nearly USD 33.81 Billion by 2035. The market growth can be attributed to the increasing adoption of electric vehicles and the absence of adequate surveillance mechanisms for monitoring cases of vehicle theft. Besides, the emergence of InsurTech to develop customised motor insurance policies as per consumers’ preferences is also leading to the market growth.
Base Year
Historical Period
Forecast Period
Vehicle theft in major metropolitan cities such as New Delhi, Chennai, and Bengaluru is significantly rising due to factors like inadequate parking facilities and the lack of advanced security measures. Reportedly, Bengaluru accounted for 10.2% of all vehicle theft cases in 2023 whereas Chennai accounted for 10.5% of all vehicle thefts in 2023. The rising incidences of vehicle theft have made motor insurance an important financial instrument for consumers to mitigate financial loss.
The increasing popularity of electric vehicles amid the rising focus on sustainability and favourable government initiatives is prompting key players to develop motor insurance products tailored to EVs. In 2023, the electric vehicle market in India witnessed an increase of 49.25% to reach 1.52 million units. Moreover, motor insurers are expanding their coverage options to include add-ons like battery insurance and protection against charging station issues. For instance, in April 2023, ACKO General Insurance launched an "Extended Battery Warranty" targeting electric vehicle owners to safeguard the battery life of EVs and boost EV affordability.
There is a rising adoption of online platforms to compare and purchase/renew their motor insurance policies, enhancing the accessibility of motor insurance solutions. In the forecast period, increasing internet and smartphone penetration is expected to surge the demand for motor insurance solutions from online channels, hence driving the India motor insurance market development. Reportedly, India is projected to boast 1.2 billion smartphone connections by 2030.
|
India Motor Insurance Market Report Summary |
Description |
Value |
|
Base Year |
USD Billion |
2025 |
|
Historical Period |
USD Billion |
2019-2025 |
|
Forecast Period |
USD Billion |
2026-2035 |
|
Market Size 2025 |
USD Billion |
12.57 |
|
Market Size 2035 |
USD Billion |
33.81 |
|
CAGR 2019-2025 |
Percentage |
XX% |
|
CAGR 2026-2035 |
Percentage |
10.40% |
|
CAGR 2026-2035 - Market by Region |
West and Central India |
11.4% |
|
CAGR 2026-2035 - Market by Region |
East India |
11.0% |
|
CAGR 2026-2035 - Market by Policy Type |
Comprehensive Coverage |
11.2% |
|
CAGR 2026-2035 - Market by Premium Type |
Personal Insurance Premiums |
10.9% |
|
Market Share by Region 2025 |
North India |
32.1% |
Automotive producers are gradually transitioning towards electric vehicle manufacturing to cater to the evolving transportation needs of consumers to save fuel costs and reduce their carbon footprint. The introduction of several EV models like Tata Punch.ev, VolvoXC40, and MG Comet underpin this trend, which is further expected to increase the demand for green auto insurance. This is one of the key India motor insurance market trends. In 2023, Indian car makers sold nearly 13 lakh electric vehicles, and insurance companies received around INR 1000 crores worth of insurance premium. EV batteries account for almost 60% of the vehicle’s total cost, and electric motors are available in the range of INR 20,000-1,00,000. This is expected to increase the demand for financial risk mitigation options among EV owners, thereby driving the India motor insurance market development.
With the Insurance Regulatory and Development Authority anticipated to stipulate a 7.5% discount on premiums for hybrid vehicles and a 15% discount on third-party premiums for electric vehicles, consumer accessibility and affordability to green auto insurance is expected to rise significantly. Companies like TATA AIG General Insurance Company Limited are targeting a market share of 8%-9% by introducing novel add-on features for existing motor insurance policyholders. This is expected to favourably shape the market dynamics in the upcoming years.
Rising cases of car thefts; the introduction of novel add-on features in motor insurance solutions; rising penetration of motor insurance in rural areas; and the emergence of InsurTech are the major factors favouring the India motor insurance market growth.
In 2023, India witnessed a 2.5x growth in the number of vehicle thefts, with the number of reported bike thefts increasing by 9.25 times as compared to four-wheelers. Hence, growing concerns regarding vehicle theft have bolstered the demand for motor insurance solutions, thereby enabling vehicle owners to obtain adequate compensation for mitigating financial losses.
Insurance companies like TATA AIG General Insurance Company Limited are providing roadside assistance as an add-on to their general motor insurance policyholders. During unforeseen circumstances encountered on-road, they are also covering the costs of towing services, tyre blowout, overnight stay, spare keys, or any additional expenditure legal expenditure in case of an accident, boosting the appeal of motor insurance among customers.
Increasing collaboration of insurance companies with microfinance institutions, government agencies, and other local partners to increase customer awareness regarding third-party insurance coverage is expected to improve their regulatory compliance as per industry guidelines and drive the India motor insurance market development.
InsurTech startups are revolutionising the Indian automotive industry by streamlining the purchase process, offering seamless digital experiences for customers, and developing data-driven solutions for claims management and risk assessment and claims management. By leveraging AI and machine learning tools, companies are developing personalised insurance plans for improving underwriting accuracy.
Increasing incidence of car thefts
In 2023, Delhi, Chennai, and Bangalore reported the highest number of car thefts in India due to the lack of organised parking spaces in several regions. The most popular four-wheelers which were stolen included Maruti Suzuki (47%), followed by Maurti Swift and Maruti Wagon R in Delhi NCR, followed by hatchbacks like Maruti Swift Dzire, Hyundai Creta, and Hyundai Grand. In 2023, the region registered 105 cases of car thefts daily in 2023 and accounted for 37% of all car thefts.
Digitisation and technology integration
One of the key India motor insurance market trends is the growing emphasis on digitisation and technology integration. Insurers are adopting digital platforms for faster policy issuance, claims processing, and customer support, enhancing convenience for policyholders. Mobile apps and AI-driven chatbots are streamlining the customer experience, while telematics-based policies are gaining popularity. These usage-based policies allow premiums to be determined by driving habits and mileage, encouraging safer driving behaviour. Additionally, insurers are leveraging data analytics to personalise offerings, improve risk assessment, and optimise underwriting. This shift toward digital transformation is reshaping the motor insurance market in India.
The EMR’s report titled “India Motor Insurance Market Report and Forecast 2026-2035” offers a detailed analysis of the market based on the following segments:
Breakup by Policy Type
Breakup by Premium Type
Breakup by Distribution Channel
Breakup by Region
| CAGR 2026-2035 - Market by | Region |
| West and Central India | 11.4% |
| East India | 11.0% |
| North India | XX% |
| South India | XX% |
Based on region, the market is segmented into East India, West and Central India, North India, and South India. Over the forecast period of 2026-2035, the demand for motor insurance in West and Central India is expected to grow at a CAGR of 11.4% due to rapid urbanisation and rising consumer disposable incomes. East India is expected to grow at a CAGR of 11.0% due to the growth of insurance technology in the region.
Based on policy type, the market is categorised into liability insurance, comprehensive coverage, collision coverage, and personal injury protection. The India motor insurance market analysis suggests that comprehensive coverage is expected to grow at a CAGR of 11.2% between 2026 and 2035 due to the rising number of road accidents reported across the country and the rising costs of repairing vehicle damage. Personal injury protection is expected to grow at a CAGR of 10.7% since it covers the hospitalisation costs of major road accidents.
Major players are introducing user-friendly generative AI-powered chatbots to simplify the insurance purchasing process for customers. Besides, the switch towards telematics tools for enhancing consumer experience is expected to increase the India motor insurance market revenue. By expanding their existing product offerings and providing comprehensive solutions for protection from financial risk, companies are focusing on increasing their market share in the coming years.
ICICI Lombard General Insurance Company Limited was founded in 2001 and is headquartered in Mumbai, Maharashtra. It is one of India’s leading private general insurance companies which provides a comprehensive range of insurance products for crops, vehicles, fires, and individual lives through multiple distribution channels.
Reliance Capital Limited was founded in 1986 and is headquartered in Mumbai, Maharashtra. It is a financial services company that specialises in providing general insurance products and wealth management services.
The Oriental Insurance Company Ltd. was founded in 1947 and is headquartered in New Delhi. It is India’s 4th largest general insurance company with around 1000 offices and over 15,000 employees.
United India Insurance Company Ltd. was founded in February 1938 and is headquartered in Chennai, Tamil Nadu. It is a government-owned company which distributes insurance products to nearly 1.38 crore customers.
*Please note that this is only a partial list; the complete list of key players is available in the full report. Additionally, the list of key players can be customized to better suit your needs.*
Other players included in the India motor insurance market report are Bajaj Allianz General Insurance Company, HDFC ERGO General Insurance Company Limited, TATA AIG General Insurance Company Limited, The New India Assurance Co. Ltd., SBI General Insurance Company Limited, and Acko Technology and Service Private Limited, among others.
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*While we strive to always give you current and accurate information, the numbers depicted on the website are indicative and may differ from the actual numbers in the main report. At Expert Market Research, we aim to bring you the latest insights and trends in the market. Using our analyses and forecasts, stakeholders can understand the market dynamics, navigate challenges, and capitalize on opportunities to make data-driven strategic decisions.*
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In 2025, the market reached an approximate value of USD 12.57 Billion.
The market is projected to grow at a CAGR of 10.40% between 2026 and 2035.
The market is estimated to witness healthy growth in the forecast period of 2026-2035 to reach a value of around USD 33.81 Billion by 2035.
The different regions considered in the market report include East India, West and Central India, North India, and South India.
The different types of policies in the market are liability insurance, comprehensive coverage, collision coverage, and personal injury protection.
The different types of premium payable for motor insurance are personal insurance premiums and commercial insurance premiums.
The different distribution channels in the market are direct sales, agents or brokers, and banks, among others.
Key players in the market are ICICI Lombard General Insurance Company Limited, Bajaj Allianz General Insurance Company, HDFC ERGO General Insurance Company Limited, TATA AIG General Insurance Company Limited, The New India Assurance Co. Ltd., The Oriental Insurance Company Ltd., United India Insurance Company Ltd., Reliance Capital Limited, SBI General Insurance Company Limited, and Acko Technology and Service Private Limited, among others.
Explore our key highlights of the report and gain a concise overview of key findings, trends, and actionable insights that will empower your strategic decisions.
| REPORT FEATURES | DETAILS |
| Base Year | 2025 |
| Historical Period | 2019-2025 |
| Forecast Period | 2026-2035 |
| Scope of the Report |
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:
|
| Breakup by Policy Type |
|
| Breakup by Premium Type |
|
| Breakup by Distribution Channel |
|
| Breakup by Region |
|
| Market Dynamics |
|
| Competitive Landscape |
|
| Companies Covered |
|
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