49% of two-wheeler insurance from tier-3 cities, 78% add zero-dep: Report
Source: Business Standard
The two-wheeler insurance market is witnessing a significant rural boom, with 49% of purchases now originating from tier-3 cities. Meanwhile, zero-depreciation add-ons have emerged as the most popular choice, accounting for 78% of policies, according to a report by PolicyBazaar.
Take a look at some of the consumer behaviour trends for two-wheeler Insurance in 2024:
Comprehensive insurance remains a top choice
Most two-wheeler owners opt for comprehensive insurance. 57% of all policyholders prefer this over third-party coverage, PolicyBazaar reports.
Comprehensive policies are seen as more beneficial, as they cover accidents, thefts, and damage from natural disasters, unlike third-party insurance which only covers damages to other vehicles or property.
It is mandatory to purchase at least a third-party two-wheeler insurance policy in India, as required by the Motor Vehicles Act.
Year-on-year growth in comprehensive plans
According to PolicyBazaar, there’s been a steady rise in the adoption of comprehensive two-wheeler insurance. Year-on-year growth is clocking in between 8% and 10%.
“Consumers are increasingly prioritising road safety, with a growing awareness of the risks linked to rising traffic and accidents. Frequent weather-related incidents, such as floods and heavy rains, have also made people realise the importance of opting for more than just basic third-party insurance,” says Manas Kapoor, Head of Two-Wheeler Insurance at PolicyBazaar.
Add-ons that consumers prefer
Add-on covers are becoming a popular choice, with Zero Depreciation leading the pack. A whopping 78% of consumers are now opting for this, which helps reduce out-of-pocket expenses when it comes to wear and tear.
Other common choices include:
19% choosing compulsory personal accident (CPA) cover
18% selecting roadside assistance
There’s also growing interest in add-ons specific to electric vehicles (EVs), such as battery cover, which is gradually picking up traction, the report reveals.
Bikes versus scooters
In terms of the type of vehicles insured, motorbikes are far more common, making up 70% of purchases. Scooters, while accounting for only 30%, remain the choice of women, students, and city commuters. The most popular segment for bikes is 150-220 CC, largely used for daily commuting.
Rise in high-end bike insurance
Though still a small portion of the market, high-end bikes are making their presence felt, with 7.4% of all two-wheeler insurance purchases falling under this category. The costs of replacing or repairing these premium vehicles have prompted owners to seek comprehensive coverage to protect their investments.
Geographic spread of purchases
Tier-3 cities dominate the geographic spread of two-wheeler insurance purchases, with 49% of policies being bought in these areas. Tier-2 cities account for 27%, while Tier-1 cities comprise the remaining 24%.
First Published: Sep 24 2024 | 4:51 PM IST
