By Priyanka Gupta

Copyright india

The trajectory of Indias motor insurance sector is experiencing rapid transformations whether it is because of the rapid growth of EVs in the market catalyzed by the attractive 5% GST rate on them or because of the rapid adoption of AI by insurance companies.
IRDAI is making changes to make motor insurance more transparent tech-friendly and customer-first. Changes include flexible pay-as-you-go options long-term coverage mandates and specialized policies for electric and automatic vehicles. Analyzing all these transformations we have pointed out 5 important things you should understand when owning a bike or car insurance in 2025 in India.
5 Things To Consider Before Buying a Vehicle Insurance in 2025
Review Your Current Policy
As you know the motor insurance sector is changing. At this time just renewing the same insurance policy without proper research is not recommended. Reconsider your insurance policy as per your risk profile along with your current driving habits and IDV to find out your insurance requirements.
Moreover you should keep track of the remaining validity of your current policy and the grace period offered by your insurer to buy new coverage before your current policy expires.
Go for Comprehensive Coverage and Consider Buying Add-ons
A comprehensive policy of car or bike insurance offers financial protection against potential threats including theft natural and man-made calamities. With comprehensive cover you can also get additional coverage like Return To Invoice (RTI) or engine protection coverage at additional premiums.
Go For Digital-First Insurance Providers
Traditional insurance companies are slowly becoming obsolete and are unable to compete with technologically advanced insurance providers. Digital insurance providers offer better transparency and quicker disbursal of claims that align with the new requirements from IRDAI.
In 2025 many insurers are using telematics to track your individual driving habits through mobile apps or in-car devices. If you are a safe driver you can benefit from these features to secure a low insurance price. Moreover many insurers also offer flash discounts on premiums which you can keep track of through their website and mobile applications.
Choose an Insurer with High CSR
When we talk about insurance whether it is motor vehicle insurance or some other insurance dissatisfaction and not living up to promises are common issues. People face problems like claim delays partial settlements or claim rejections for reasons like incomplete documentation late intimation etc.
Well this problem is only with some insurers. It is important to look for an insurance company that maintains a high Claim Settlement Ratio (CSR) to avert these risks. To get these you must prioritize a reliable insurer over price.
Choose an Insurer That has a Better Reach
When selecting an insurer consider their reach and network coverage. While many insurers offer services like roadside assistance and network garage facilities limited reach in remote areas could mean you are left with only monetary compensation in case of an emergency.
To avoid this choose an insurer with an extensive network of garages and a strong reputation for reliable service. This ensures youre well-supported no matter where you are in India offering both convenience and peace of mind.
Tips To Choose The Best Vehicle Insurance Coverage In 2025
A vehicle insurance can prove to be an economical decision rather than just an expense to meet legal obligations if you assess your risks properly and buy customized coverage.
Assess Your Risks: Analyze your risks and get a customized coverage that suits your requirements.
Compare Insurance Policies Online: Check the process for various insurance providers. You may find a limited-time discount on insurance covers.
Buy Adequate Coverage: Consider valuable add-ons like RTO and engine cover. These can save you from major expenses.
Final Thoughts
Buying insurance coverage is a long-term investment that you make to safeguard yourself from potential financial threats due to accidental losses. Make sure to get adequate coverage as per your risk profile and after assessing your insurer’s reputation for disbursing claims. You can easily find reviews about them on the web.
Another tip is always renew your insurance before its grace period is over. This will allow you to keep your accumulated NCB.
Disclaimer:
This article is from the Brand Desk. User discretion is advised.