New car insurance policy purchases rose 21.5% in October 2026 compared with September, coinciding with the festive-season increase in vehicle buying, according to an analysis by Policybazaar.
The online insurance marketplace said purchases were also 8.4% higher than in October 2025, indicating an increase in demand for new car insurance during the festive period.
The data also points to a rising share of electric vehicles (EVs) in new car insurance purchases. EVs accounted for 23.1% of new car policies bought in October 2026, up from 13.3% in October 2025 and 7.6% in October 2024.
Petrol vehicles continued to account for the largest share at 51.35%, followed by diesel vehicles at 17.7%. Other fuel categories accounted for 7.82%.
Zero-depreciation cover among most preferred add-ons
Policybazaar’s analysis also showed a high uptake of add-on covers among new car insurance buyers. Zero-depreciation cover had the highest attachment rate at 96.6%, followed by roadside assistance at 90.2% and return-to-invoice cover at 80.1%.
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Consumables cover had an attachment rate of 75.8%, while key and lock replacement and engine protection stood at 70.1% and 62.1%, respectively. Tyre protection had a lower attachment rate of 30.6%.
For electric vehicles, battery cover had an adoption rate of around 85%, the company said.
These add-ons provide protection beyond the basic policy, although their coverage, exclusions and claim conditions vary across insurers and policy terms.
Bengaluru, Delhi lead city-wise purchases
Bengaluru accounted for the largest share of new car insurance purchases at 9.93%, followed by Delhi at 8.33% and Pune at 5.69%.
Gurgaon contributed 3.47% of purchases, while Mumbai accounted for 3.15%. Chennai, Noida, Patna, Hyderabad and Jaipur also featured among the top 10 cities.
The top 10 cities together accounted for 41.72% of new car insurance purchases, according to Policybazaar’s analysis.
The figures indicate that the increase in festive-season insurance purchases was accompanied by a changing vehicle mix, particularly a higher share of EVs, and significant uptake of optional covers.
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