Motor insurance market size in India | Industry Trends & Forecast 2025

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Code: MTA10168

Publication Date: Oct 2025

What is the growth rate of the India Motor Insurance Market?

According to 6Wresearch internal database and industry insights, the India Motor Insurance Market is expected to grow at a CAGR of 10.2% during 2025-2031.

The key features driving the growth of the industry include an increase in vehicle purchases, growth in disposable income, government mandates, and a growing awareness of the value of vehicle insurance. Customers now understand the value of insurance for protection against accidents, theft, and third-party liability.

Growth Factors for India Motor Insurance Industry

Increase in ownership of vehicles due to increased disposable income.
Increased government regulations require motorists to hold insurance.
An increase in the number of road accidents leads to a demand for insurance.
Increased awareness of the importance of third-party liability and comprehensive insurance.
Improvements in technology applicable to insurance offers and systems.

India Motor Insurance Market Trends

The India Motor Insurance Market is seeing significant trends like the increasing use of digital platforms for purchasing policies and processing claims. In addition, insurance companies are focusing on providing customised packages for various consumer segments by adding optional components. Usage-based insurance (UBI) is also becoming more popular as insurance companies use telematics to monitor driving habits and provide individualised premium rates.

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Emerging Developments in the India Motor Insurance Market

The India Motor Insurance Market is witnessing developments such as the rise of telematics-based insurance policies, where driving behaviour is tracked to determine premiums. Furthermore, insurers are exploring the potential of artificial intelligence for better risk assessment and claim processing. With a shift toward online platforms, companies are also incorporating digital tools to enhance the customer experience, including chatbots for quicker resolution of queries.