How EV Adoption Is Shaping Two-Wheeler Insurance Online Purchases?

Fastest Growing Segment in Two-wheeler Insurance

EV was the fastest-growing two-wheeler segment in the motor insurance category during FY26. Premiums collected saw an increase of 200% and a 2.5 times year-over-year growth in new EV insurance purchases. Maharashtra, Uttar Pradesh, and Delhi reported the highest demand among all the Indian states.

As more consumers purchase electric scooters and bikes, the demand for electric bike insurance online has significantly increased.

Digital-First Nature of the EV Consumer

Since EV adoption is still in its early stages, its user base consists of a younger and tech-savvy population. It is more inclined towards making a research-based decision-making process. These people often prefer a sophisticated two-wheeler insurance online purchasing process over taking the traditional route of an insurance agent. The latest reports also display a rising number of EV insurance purchases.

Specialised Coverage Driving Online Research

Unlike petrol bikes, an electric two-wheeler relies heavily on batteries. It accounts for 40% to 50% of the overall cost. EV owners are now primarily looking for:

• Battery Protection Covers: To safeguard vehicle batteries against non-accidental damage, such as water ingress and power surges.
• Zero Depreciation Cover: To ensure that the cost of a battery is fully covered in the event of a claim.

Because these add-ons require careful evaluation, consumers increasingly choose a comprehensive bike insurance policy for outstanding coverage. 

EV Insurance vs Petrol Bike Insurance: Cost Perspective

While electric bike insurance premiums may be slightly higher due to battery value, operational savings offset the difference.

This comparison encourages buyers to evaluate electric two-wheeler insurance cost online before finalising.

Rise of Usage-Linked Insurance Products (Pay-As-You-Drive)

EVs are digitally integrated vehicles, making telematics tracking easier. Insurers are introducing plans like: 

• Pay-As-You-Drive policies
• Usage-linked premium models
• Data-driven discount structures

Such flexible plans are easier to explore and purchase online, further accelerating digital insurance adoption.

Regulatory Push: IRDAI Discount on EV Insurance

To promote EV adoption, the regulator has mandated a 15% discount on third-party (TP) insurance premiums for electric vehicles.

Additional Government Incentives Supporting EV Growth

• Reduced GST on EVs
• Exemption from road tax (in several states)
• Registration fee waivers
• Scrappage incentives
• State-level EV subsidies
  
  

These incentives increase EV ownership, indirectly boosting demand for electric bike third-party insurance online.

Shift in Consumer Behaviour: From Compliance to Protection 

The mindset of consumers is now shifting towards viewing insurance as a tool for safeguarding their vehicles, instead of just legal compliance. It has resulted in buyers opting for multiple add-on covers, including roadside assistance cover and zero depreciation cover.

Government Policies to Boost EV Adoption

There are several policies adopted by the government to boost the adoption of EV two-wheelers in India. Here are some of the examples:

• 15% discount on third party insurance for EVs
• Exemption from road tax and registration fee
• Reduced GST on EVs
• Scrapping incentives at the time of scrapping old vehicles
• Several states offer additional subsidies

FAQs - How EV Adoption Is Shaping Two-Wheeler Insurance Online Purchases?