Important Alert:
Summary: The Indian motor insurance market saw an overall 5.96% YoY decline in search volumes (59.3L → 55.8L) in FY’25. While brands like Tata AIG (+17.8%) and SBI General (+19.4%) grew, HDFC ERGO (–29.4%) declined. Among aggregators, PolicyBazaar leads with 67% share, with ACKO also growing (+11.1%). Four-wheeler (27.9%) and two-wheeler (24.8%) segments drove interest, while commercial vehicle insurance dropped (–16.9%). New insurance policies dominate with 87.6% share, and top non-brand keywords remained “Car insurance” and “Bike insurance” (1.35L each). Geographically, Tier-1 (+1.9%) and Tier-2 (+4.8%) cities showed growth, even as other regions declined (–16.3%). Overall, despite a volume drop, rising demand for new policies and traction in urban and Tier-2 markets highlight strong acquisition opportunities.
Key Takeaways:-
The motor insurance business is crucial in the global insurance industry as it provides financial protection from risks like accidents and theft. The demand for motor insurance still increases with increasing urbanization and growth in car ownership especially in emerging economies.
This trend is marked by various things like a change to electric cars, improvements made in telematics and artificial intelligence (AI), and an increase in digital insurance platforms. Innovative products such as usage-based insurance and the emerging use of online platforms to purchase and manage policies are improving customer experience while enhancing the market size of the motor insurance industry. Increasing regulatory requirements enforce compliance, thereby supporting market development.
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Note: L represents numbers in Lakhs
Motor insurance searches saw a decline of -5.94% YoY, with volumes falling from 59.35 lakh in FY’24 to 55.82 lakh in FY’25. While this marks a slowdown compared to the strong growth seen in earlier years, search volumes remain robust, reflecting sustained consumer interest.
Smaller players, however, struggled to keep pace. Coverfox (-39.80%), PhonePe (-48.72%), Paytm Insurance (-37.42%), and Bankbazaar (-23.24%) all saw steep declines in search visibility. RenewBuy showed modest growth at 6.25%, but its overall contribution to market share remains negligible. With total searches growing by just 0.44% year-on-year, the aggregator market appears saturated, leaving visibility and dominance concentrated among a few big names.
The motor insurance business is growing rapidly and several key factors are driving this growth
| Growth Driver | Explanation |
|---|---|
| Regulatory Changes | Governments around the world are increasing regulations to encourage wider car owner insurance inclusion. For example, in India, uninsured automobiles face stiff penalties as stipulated by the Motor Vehicles (Amendment) Act of 2019, making policyholders rise sharply. The market is also witnessing new types of coverage like telematics-based and pay-as-you-go policies. |
| Technological Advancements | The use of AI, blockchain, and telematics has greatly contributed to the growth of the motor insurance sector. By automating claims processing, identifying fraudulent activities and enhancing customer experience, AI ensures operational efficiencies. |
| Economic Factors |
Motor insurance growth largely depends on economic conditions. Increased prosperity levels and urbanization in poor countries have enhanced vehicle ownership; hence, demand for automobile insurance has gone up accordingly. However, any downturn can negatively impact car sales, which then affects the motor insurance industry. At the same time, consumer behavior and motor insurance trends are influenced by factors such as fuel costs, interest rates, or financing alternatives. |
The motor insurance market in India is undergoing significant change, with search volumes reaching 55.82 lakh in FY’25, compared to 59.35 lakh in FY’24. While there’s been a slight decline year-on-year, the demand remains robust, led by high-interest keywords like car insurance and bike insurance (each capturing nearly 28% of total search share).
This indicates that consumer intent is still strong, but shifting – with rising brand-specific searches like Maruti Suzuki car insurance (+18.27% YoY), while more generic terms such as third-party insurance and bike insurance check online are seeing declines of over 20%.
For insurers and digital marketers alike, the opportunity lies in staying agile and adaptive – aligning with search trends, optimizing for user intent, and leveraging digital tools to remain competitive in an increasingly crowded marketplace.
To boost visibility and lead generation in this evolving space, explore our insurance seo services designed to help insurance brands rank higher and attract the right customers.
The Indian motor insurance sector is projected to cross ₹1.5 trillion in premiums by FY’25, driven by rising vehicle sales, digital adoption, and mandatory third-party insurance coverage.
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