New-car insurance demand rose 21.5% in October: buyer checks

By Akhil Arora · 7 Nov, 2026

Policybazaar’s October 2026 sample shows new-car insurance purchases rose 21.5% from September, with EVs and add-ons gaining share. Here are the cover checks that matter.

New-car insurance demand rose 21.5% in October: buyer checks

New-car insurance purchases through Policybazaar rose 21.5% in October 2026 compared with September, according to an analysis reported by Outlook Money and Moneycontrol. The finding matters to festive-season buyers because insurance is part of the cost and protection decision when a new car is delivered, but the figure measures purchases on one platform, not a 21.5% rise in every insurer’s premium or every owner’s renewal bill.

Key takeaways

Policybazaar’s analysis covered 48,000 new-car insurance policy purchases in October 2026.
Purchases were 8.4% higher than in October 2025, according to the reports, but the dataset is not a full-market count.
Electric cars made up 23.1% of the sampled new-car policies, up from 13.3% in October 2025 and 7.6% in October 2024.
Zero-depreciation, roadside assistance and return-to-invoice covers had attachment rates of 96.6%, 90.2% and 80.1%, respectively, in the October sample.
Buyers need to compare the cover, IDV, deductibles, exclusions and claims process rather than treating a popular add-on as automatically necessary.

What the October insurance data actually measures

The 21.5% change is a month-on-month increase in the number of new-car policies bought through Policybazaar. Moneycontrol says the analysis covered 48,000 purchases during October 2026, while Outlook Money reports that the October total was also 8.4% above October 2025. Together, the figures point to stronger festive-season activity on the platform.

That is useful context, but it should not be read as a national premium index. A platform’s customers, distribution partnerships, vehicle mix and purchase timing can differ from the wider market. The reports also do not show that all car owners are renewing earlier, paying more or changing insurers. They show that new-car policy purchases rose alongside the festive buying period.

For a buyer, the practical point is to separate the insurance transaction from the excitement of delivery. A policy quote attached to a vehicle purchase may be convenient, but its price only makes sense alongside the protection it provides, the insured value and the conditions attached to any add-ons.

EVs are taking a larger share of new-car policies

Electric cars accounted for 23.1% of the sampled new-car insurance purchases in October 2026. That compares with 13.3% in October 2025 and 7.6% in October 2024, according to the Policybazaar figures reported by both outlets. The comparison describes the fuel mix of policies purchased on the platform; it is not the same as India’s overall EV sales share.

Petrol cars still represented the largest share of the October sample at 51.35%, while diesel cars accounted for 17.7%. Battery cover had an attachment rate of about 85% among the EV policies in the analysis. That does not make battery cover a universal requirement, but it does show why EV buyers need to read the wording for battery-related damage, charging-related incidents, exclusions, claim documentation and any separate limits.

If you are comparing how a policy may respond after an accident or theft, FuelPrice’s guide to reading car insurance claim settlement ratios provides background. A ratio alone does not replace checking the policy’s actual terms.

Popular add-ons are not automatically the right add-ons

Zero-depreciation cover was selected with 96.6% of the sampled policies in October 2026, followed by roadside assistance at 90.2% and return-to-invoice cover at 80.1%. The same analysis reported attachment rates of 75.8% for consumables cover, 70.1% for key and lock replacement and 62.1% for engine protection.

These are attachment rates, not proof that each cover will pay a claim or that every owner needs it. Zero-depreciation cover may limit depreciation deductions on eligible parts, subject to its wording and limits. Return-to-invoice cover can address a specified gap between the insured value and the invoice price after an eligible total loss or theft. Roadside assistance is a service benefit whose availability and limits can vary.

Before selecting an add-on, check the extra premium, the maximum payable amount, deductibles, waiting or eligibility conditions, exclusions and whether the same assistance is already available through the vehicle manufacturer or another service plan. For a policy dispute or rejected claim, FuelPrice’s motor insurance claim rejection checklist explains common documentation and coverage issues.

What new-car buyers should check before paying

Third-party and own-damage cover: IRDAI consumer guidance says motor third-party liability insurance is mandatory under the Motor Vehicles Act. Own-damage cover protects the insured vehicle against covered loss or damage; buyers should confirm which sections are included rather than assuming that a single headline price covers everything.
IDV and deductibles: Check the insured declared value, compulsory deductible and any voluntary deductible. A lower premium can be linked to a lower IDV or a higher amount that the owner must bear when a claim is settled.
Vehicle-specific protection: For an EV, read the battery and electrical-system wording. For any car, check how accessories, keys, consumables, water damage and roadside assistance are treated.
Claims and repairs: Review the cashless garage network, inspection requirements, claim notification process, documents and exclusions. The cheapest quote is not a useful comparison if the policy’s limits do not match the vehicle’s use and location.
Renewal record: Keep the policy schedule, invoice, registration details and prior policy information. If a policy is nearing expiry, FuelPrice’s explanation of usage-based car insurance and telematics can help clarify how data-led products differ from standard cover.

The reader takeaway

The October increase is a timely signal that festive car buying and insurance buying are moving together, while EVs are becoming more visible in new-car policy data. It is not a promise of lower premiums, a claim that every add-on is worthwhile or evidence that renewal costs rose across the market. Treat the 21.5% figure as a platform-level trend, then compare the actual cover, limits, deductibles and claims process for the vehicle being insured.