Festive car buying drives 21.5% jump in new insurance purchases in October

India’s festive-season vehicle buying boom has translated into a sharp rise in demand for new car insurance, with policy purchases in October 2026 rising 21.5% from September, according to an analysis by Policybazaar.

The festive season, traditionally a key period for automobile purchases around Navratri, Diwali, and other occasions, is increasingly emerging as an important window for consumers to make insurance decisions alongside buying a new vehicle. The momentum also continued on a yearly basis, with new car insurance purchases in October 2026 rising 8.4% compared with October 2025.

EV share in new car policies rises sharply

The festive surge comes amid a major shift in the mix of vehicles being insured, with electric vehicles accounting for a growing share of new car insurance purchases.

EVs made up 23.1% of new car policies purchased in October 2026, up from 13.3% in October 2025 and 7.6% in October 2024. The share of electric vehicles in new policy purchases has thus increased more than three-fold over the past three years.

Petrol vehicles continued to account for the largest share of new car policies at 51.35%, followed by EVs at 23.1% and diesel vehicles at 17.7%. Other fuel categories accounted for 7.82%.

The rising share of EVs highlights the rapidly changing composition of India’s motor insurance market, with electric vehicles becoming an increasingly important part of the customer base.

Buyers opt for broader insurance protection

The festive insurance purchase is also increasingly moving beyond basic coverage, with consumers showing a strong preference for add-on protection. Zero-depreciation cover had the highest adoption rate at 96.6%, followed by roadside assistance at 90.2%. Battery cover for electric vehicles saw adoption of about 85%.

Return-to-invoice cover had an attachment rate of 80.1%, while consumables cover stood at 75.8%. Key and lock replacement was chosen in 70.1% of policies, followed by engine protection at 62.1%. Tyre protection had an attachment rate of 30.6%.

The high adoption of add-on covers suggests that consumers are increasingly opting for more comprehensive protection at the time of purchasing a vehicle rather than limiting themselves to basic insurance coverage.

Demand spreads beyond the biggest metros

While India’s major metropolitan markets continue to dominate new car insurance purchases, demand is also becoming more broad-based. The top 10 cities accounted for 41.72% of total policy purchases, with Bangalore leading the rankings with a 9.93% national share. Delhi followed at 8.33%, while Pune accounted for 5.69%.

Gurgaon ranked fourth with a 3.47% share, followed by Mumbai at 3.15%, Chennai at 2.76%, and Noida at 2.64%. Patna, with a 2.01% share, ranked eighth, followed by Hyderabad at 1.90% and Jaipur at 1.84%. The presence of cities such as Patna and Jaipur among the top 10 points to the growing importance of regional markets in India’s motor insurance demand.

Festive buyers spend more on protection

Taken together, the data points to a broader change in the profile of the festive-season car buyer. Higher vehicle purchases are driving greater policy volumes, but consumers are also showing a willingness to spend more on comprehensive protection.

New car insurance purchases rose 21.5% month-on-month in October and were 8.4% higher than a year earlier. At the same time, EVs have emerged as a much larger part of the insurance market, while add-on covers such as zero depreciation, roadside assistance, and return-to-invoice are seeing strong adoption.