As India shifts towards sustainable mobility, the demand for electric vehicle (EV) insurance has skyrocketed. According to data from Policybazaar, the share of insured EVs has jumped from a mere 0.5% in FY23 to an impressive 14% in March 2025. This marks a 16-fold increase over three years, reflecting not just the rise in EV adoption but also a growing awareness of tailored insurance coverage for these vehicles.

Why the surge in EV insurance?

The dramatic increase in EV insurance can be attributed to:

• Rising EV Sales: More consumers are switching to electric vehicles, increasing the need for insurance coverage.
• Growing Awareness: Owners are recognizing the importance of specialized protection beyond basic policies.
• Government Push: Policies supporting EV adoption have indirectly boosted insurance demand.

Who’s leading the charge?

EV adoption—and insurance coverage—is highest in major metropolitan areas:

• Delhi-NCR (18.3%) leads the market.
• Bengaluru (16%) follows closely.
• Other key cities include Pune (7.6%), Chennai (6.7%), and Mumbai-Thane (6.4%).

Interestingly, Tier 1 cities dominate with 58% of all EV insurance plans, while Tier 2 and Tier 3 cities account for 30% and 12%, respectively.

Popular EV insurance add-ons

EV owners are opting for comprehensive policies that go beyond standard coverage. Some of the most popular add-ons include:

• Zero Depreciation: Ensures higher claim value without factoring in depreciation.
• Roadside Assistance: Essential for unexpected breakdowns.
• Battery Coverage: Protects the most expensive EV component.
• Charger Cover: Covers damage or loss of EV chargers.
• Invoice Price Protection: Reimburses the original cost in case of total loss.

What’s next?

As the EV market grows, insurance offerings will likely evolve with better coverage options, competitive pricing, and government-backed incentives. The focus will be on making EV ownership hassle-free with policies tailored to specific needs, such as battery warranties and charging infrastructure support.

Final thoughts

The rise in EV insurance is a sign of India’s accelerating transition to green mobility. With insurance options becoming more refined, EV owners now have better financial protection and peace of mind. Whether you own an electric car or a two-wheeler, investing in the right insurance plan is becoming just as essential as the vehicle itself.