A recent report from Policybazaar highlighted a shift in the two-wheeler insurance market, with 49% of purchases coming from tier-3 cities. This trend reflects the growing reliance on two-wheelers as the primary mode of transport in rural and semi-urban areas.

Tier-2 cities contribute 27%, while tier-1 cities account for 24%.

Comprehensive two-wheeler insurance remains the preferred choice for 57% of buyers, compared to 43% who select third-party coverage.

This preference indicates a heightened demand for protection against accidents, theft, and natural disasters, the report said.

Year-on-year growth in comprehensive insurance adoption has reached 8-10%, driven by increased awareness of its benefits.

Among add-ons, the zero depreciation option is the most popular, chosen by 78% of consumers.

Additionally, 19% opt for compulsory personal accident (CPA) coverage, and 18% select roadside assistance. Notably, interest in battery cover add-ons for electric vehicles (EVs) is rising.

In terms of vehicle type, motorbikes account for 70% of insurance purchases, with the 150-220 CC segment being the most common.

High-end bikes represent a growing niche, comprising 7.4% of sales as owners seek comprehensive coverage to protect their investments.

Manas Kapoor, Head of Two-Wheeler Insurance at Policybazaar, noted, “We’re seeing a shift in how people, especially in smaller towns, approach two-wheeler insurance. With nearly half of all purchases coming from tier-3 cities, it’s clear that two-wheelers are essential for daily commuting. What’s interesting is the growing preference for comprehensive coverage —people are no longer just settling for third-party insurance. They’re looking for more protection, whether it’s against accidents, theft, or even natural disasters like floods. The popularity of the zero depreciation add-on shows how much consumers value reducing their repair costs and protecting their investments.”

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