India’s motor insurance market posts 59% NPS, private insurers outperform public sector peers

New Delhi: Hansa Research has released its nationwide Motor Insurance CuES 2025, highlighting shifts in consumer expectations and behaviour in India’s two-wheeler and four-wheeler motor insurance segments. 

The study draws on feedback from over 3,700 consumers across 12 leading insurers, capturing insights into how customers think, choose, and experience motor insurance products.

The study reports an overall Net Promoter Score (NPS) of 59% for motor insurance in India, with four-wheeler policies scoring 61% and two-wheeler policies 55%. Private insurers outperform public sector companies, with HDFC Ergo leading across both segments at an NPS of 71%.

Other top-performing brands include Acko General (65%), Tata AIG (62%), and Royal Sundaram (62%), while public sector insurers recorded lower NPS scores, indicating gaps in customer experience.

The findings indicate that consumers prioritise reputation, trust, pricing, transparency, and strong customer support when choosing or renewing motor insurance. Quick assistance and responsive service continue to be key differentiators, alongside seamless claims processes and service benefits. Younger millennials, in particular, value 24 hours a day support and service perks but show lower loyalty, switching insurers more readily after unsatisfactory experiences.

Praveen Nijhara, CEO of Hansa Research, said, “Our goal is to equip the insurance industry with a clear, data-backed view of how consumer expectations are evolving across every category. Building on the momentum of our earlier CuES reports on Life Insurance and Health Insurance, we have launched the Motor Insurance CuES, a customer experience report in the motor insurance category.”

Nijhara added, “As value, trust and service quality become non-negotiables for today’s customers, the market is shifting toward solutions that are transparent, frictionless, and deeply personalised. Through Motor Insurance CuES, we aim to deliver sharper, actionable insights that help insurers close critical experience gaps and strengthen their competitiveness in a rapidly changing landscape.”

Piyali Chatterjee, Executive Vice President, CX, Hansa Research, said, “Consumers today are far more informed and selective, and that’s reshaping how they approach renewals in this category. We’re seeing clear signals that motor insurance policyholders are actively evaluating their options and this shift highlights the importance of competitive offerings and consistent service delivery in the motor insurance category.”

The report identifies several trends shaping the sector in 2025. Digital adoption is strongest among consumers in metro areas and younger age groups, who increasingly purchase, renew, and file claims online, valuing convenience, transparency, and speed. Switching between insurers is more common among four-wheeler owners, younger millennials, and metro consumers, reflecting their greater information access and higher expectations.

Price sensitivity remains high, with small differences in premiums influencing renewal decisions. While insurers offer differentiated services and add-ons, price continues to be the leading factor for policy switching. 

Cashless claim solutions have expanded through networked garages and tie-ups, particularly among four-wheeler owners and higher socio-economic groups, though non-cashless claims still persist in areas where network garages are unavailable.

The study also shows strong consumer demand for value-enhancing add-ons such as Zero Depreciation, Roadside Assistance, Engine Protect, and No Claim Bonus Protection. Roadside Assistance, in particular, reflects the growing preference for convenience-led services, including on-the-spot repairs, towing, and emergency support, especially in metropolitan areas. Add-ons tend to have higher uptake among four-wheeler policyholders, often influenced by prior claim experience and increased awareness of risk.