Motor Insurance Customers Focus on Cost, Brand Trust; Roadside Assistance Most Preferred Add-on

This story delves into the key trends identified by Policybazaar, offering a detailed analysis of the factors driving these changes and what they mean for insurers and policyholders alike.

1. Customer priorities in motor insurance:

Affordability: 29% of customers consider affordability as their top priority, emphasising the need for cost-effective solutions.Brand reputation: 21% of customers prioritise the brand’s reputation, highlighting the importance of trust and reliability.Customer service: 19% value excellent customer service, indicating the need for responsive and supportive interactions.Coverage features: 16% look for comprehensive coverage features, seeking policies that offer extensive protection.Claim Process and settlement: 15% focus on a smooth and efficient claim process, underscoring the need for hassle-free claim handling.

2. Preferred add-ons:

roadside assistance: 60% prefer this cover, indicating the importance of emergency support.Zero depreciation: 55% opt for this add-on, which offers greater financial protection.Engine protector: 20% seek this coverage, particularly beneficial during monsoon seasons.Consumables: 20% choose this add-on for covering the cost of consumables.Key lock replacement: 18% value this coverage for added security.Invoice price cover: 10% prefer this to ensure full reimbursement in case of total loss.South (26%) has double the uptake of Tyre Protection cover, compared to India average (13%).

3. Seasonal coverage needs during Monsoon:

Roadside assistance: 50% seek this coverage to handle emergencies.Engine protector: 30% prefer this to protect against water damage.Return to invoice price cover: 20% opt for this to ensure full value reimbursement.

4. Popularity of PAYD plans:

More than 1 in 3 customers opt for Pay As You Drive plans (PAYD), while 3 in 4 renew them, indicating a shift towards personalised motor insurance coverage.

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Popular distance slabs:

5000km: Chosen by 30% of customers7500km: Chosen by 25% of customers10000km: Chosen by 25% of customers2500km: Chosen by 20% of customers

Other Trends

Additionally, 20% of these customers often opt for top-ups, showing flexibility in their usage needs.The interest towards PAYD plans is highest in the South (55%) and lowest in the North (36%).Top cities using PAYD plans: Delhi (8%), Bangalore (5%), Mumbai (3%), Pune (2%), Gurgaon (2%)The adoption of PAYD plans is highest in the metros as they collectively account for a significant percentage of insured vehicles.

5. Tier-wise distribution of motor insurance customers

video-carouselMetros – 40%Tier – 2 – 36%Tier – 3 – 24%

There has been a significant increase of 13% in online adoption by residents of tier-2 and tier-3 cities which was previously lower. This has been driven by growing insurance awareness and the advancement of digital technology.

Popular distance slabs:

5000km: Chosen by 30% of customers7500km: Chosen by 25% of customers10000km: Chosen by 25% of customers2500km: Chosen by 20% of customers

Other Trends

Additionally, 20% of these customers often opt for top-ups, showing flexibility in their usage needs.The interest towards PAYD plans is highest in the South (55%) and lowest in the North (36%).Top cities using PAYD plans: Delhi (8%), Bangalore (5%), Mumbai (3%), Pune (2%), Gurgaon (2%)The adoption of PAYD plans is highest in the metros as they collectively account for a significant percentage of insured vehicles.

5. Tier-wise distribution of motor insurance customers

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Metros – 40%Tier – 2 – 36%Tier – 3 – 24%

There has been a significant increase of 13% in online adoption by residents of tier-2 and tier-3 cities which was previously lower. This has been driven by growing insurance awareness and the advancement of digital technology.

Namit Singh Sengar

Namit writes on personal finance, economy and brands. Currently contributing to

first published: July 17, 2024, 15:51 IST

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