New Delhi: India’s electric vehicle revolution is accelerating beyond vehicle sales, with EV insurance policies witnessing a massive 670 per cent surge between 2025 and 2026, according to new data released by Policybazaar.

The sharp increase highlights rising consumer confidence in electric mobility and growing awareness around specialised insurance products designed specifically for EV owners.

The development comes alongside a strong jump in electric passenger vehicle sales across the country. According to the latest figures released by Federation of Automobile Dealers Associations, electric passenger vehicle sales rose 75.14 per cent year-on-year in April 2026.

India recorded sales of 23,506 electric passenger vehicles in April 2026, compared to 13,421 units during the same month last year.

Telangana, Maharashtra lead EV insurance growth

The report showed that Telangana emerged as the fastest-growing state for insured electric cars, recording a 30 per cent year-on-year increase.

Meanwhile, Maharashtra led overall EV insurance adoption, with Mumbai and Pune emerging as the country’s largest EV insurance growth hubs.

According to the report, Maharashtra accounted for nearly 8 per cent of all insured EV cars in India.

The growth is being driven by increasing urban adoption of electric mobility, rising fuel prices, expanding charging infrastructure and stronger consumer preference for sustainable transportation options.

Industry experts believe the insurance boom reflects the growing maturity of India’s EV ecosystem, where buyers are now increasingly considering long-term ownership protection and battery-specific coverage plans.

EV share still remains small

Despite the rapid growth, electric vehicles still account for only around 1 per cent of the total insured vehicle base in India.

However, analysts say the pace of adoption indicates a significant structural transition underway in the country’s mobility market.

The report noted that the steep rise in EV insurance adoption reflects improving trust in electric vehicles and rising demand for customised insurance products tailored to EV technology and repair requirements.

Petrol vehicles continue to dominate

Traditional fuel vehicles still continue to dominate India’s insured vehicle market.

Petrol vehicles accounted for 68.3 per cent of all insured vehicles in FY26, driven mainly by demand for hatchbacks, sedans and compact SUVs.

Diesel vehicles contributed 24.7 per cent of the insured vehicle base, particularly due to continued demand in utility vehicles, SUVs and commercial transportation segments.

Meanwhile, alternative fuel vehicles are also steadily gaining traction.

CNG-powered vehicles now make up 5.8 per cent of the insured vehicle market, supported by rising fuel costs, improved infrastructure and growing preference for cost-efficient mobility solutions in urban and semi-urban regions.

EV ecosystem expanding rapidly

The latest data signals that India’s EV market is gradually moving beyond early adoption stages and entering a more mainstream growth phase.

Government incentives, expansion of charging infrastructure, state-level EV policies and growing participation from automobile manufacturers have collectively accelerated electric mobility adoption in recent years.

Insurance companies are also increasingly launching EV-specific policies covering battery damage, charging equipment and roadside assistance tailored for electric vehicles.

Experts believe the next few years could see EV insurance penetration grow even faster as more affordable electric models enter the market and financing options improve across India.