Comprehensive two-wheeler insurance is more popular than compulsory motor third-party liability insurance only, with 57% of owners opting for the former, compared to 43% choosing the latter, according to an analysis of two-wheeler insurance by Policybazaar, an online insurance platform company.
The analysis also reveals that 49% of two-wheeler insurance is purchases made by customers from Tier-3 cities. Tier-2 cities account for 27% of two-wheeler insurance purchases, while Tier-1 cities make up 24%.
There has been a year-on-year growth of 8-10% in the adoption of comprehensive insurance. The data suggest that two-wheeler owners are becoming more aware of the benefits of comprehensive coverage.
Other consumer behaviour trends in the two-wheeler insurance market in 2024 include:
Add-ons
Among the add-ons, Zero Depreciation coverage is the most popular, chosen by 78% of consumers, reflecting a desire to minimise out-of-pocket expenses for wear-and-tear claims. Other add-ons like compulsory personal accident (CPA) coverage and roadside assistance are selected by 19% and 18% of consumers, respectively, emphasising the growing importance of convenience and personal safety.
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.
Vehicle types
Motorbikes dominate the market, accounting for 70% of insurance purchases, compared to 30% for scooters. The most common bike segment is the 150-220cc range, mainly used for daily commuting. While scooters hold a smaller share, they remain popular among women, students, and city commuters.
High-end bikes represent a niche but growing segment, with 7.4 % of two-wheeler insurance purchases attributed to them. Given the high replacement costs and expensive repairs associated with these vehicles, owners are increasingly opting for comprehensive coverage to protect their investments.