Consumers shift gears in motor insurance choices in 2025

MUMBAI: Hansa Research has taken a fresh drive through India’s motor insurance landscape, unveiling how drivers today pick, trust and switch their policies. Its new nationwide Motor Insurance CuES 2025 study, based on feedback from more than 3,700 customers across 12 major brands, shows a market that is more informed, more demanding and far less patient than before.

After deep dives into life and health insurance, the insights firm has now turned its spotlight to the world of two-wheelers and four-wheelers. The findings sketch a clear picture of what modern policyholders expect and what insurers must fix.

CEO Praveen Nijhara said the Motor Insurance CuES aims to help insurers close experience gaps as customers place growing value on transparent pricing, personalised service and frictionless processes.

One of the strongest indicators of customer satisfaction is the Net Promoter Score. The motor insurance category holds an overall NPS of 59 per cent, with the four-wheeler segment ahead at 61 per cent and the two-wheeler segment at 55 per cent. Private insurers dominate the rankings. HDFC Ergo leads the pack with an impressive NPS of 71 per cent, followed by Acko General, Tata AIG and Royal Sundaram. Public sector insurers trail far behind, signalling service and experience gaps that customers are no longer willing to overlook.

The study reveals that buyers lean heavily on reputation and trust when narrowing options, but competitive pricing and transparency remain decisive. A strong 24 by 7 support system is now a key differentiator as consumers expect quick answers and faster resolutions. The claim process continues to make or break loyalty, with hassle-free settlements ranking among the most valued features.

Younger millennials stand out as a restless segment. They want speed, proactive updates and always-on service, but show lower loyalty and a readiness to switch after a single poor interaction. Their behaviour points to a market where service slip-ups come with real consequences.

The report highlights how claim experiences also shape future buying behaviour. Consumers who have filed claims are more likely to opt for add-ons, a sign that risk awareness grows once they have been through the process.

Hansa Research CX executive vice president Piyali Chatterjee, said policyholders are reevaluating their choices at renewal time and looking more closely at competitive offerings and service consistency.

The study also spotlights five major trends shaping the sector in 2025. Digital adoption is rising fastest among metro residents and younger consumers who prefer buying, renewing and tracking claims online with minimal intermediary involvement. Switching behaviour is more common among four-wheeler owners, younger millennials and metro consumers who are highly aware of alternatives. Price sensitivity remains intense, with even small differences influencing decisions. Cashless claim solutions are gaining traction, although network gaps still push many customers into non-cashless claims. And add-ons like zero depreciation, roadside assistance, engine protect and NCB protection remain top favourites, especially among four-wheeler owners seeking convenience and peace of mind.

Together, the findings reflect an industry in motion. Consumers today expect clearer communication, faster service and better value, and insurers that fail to keep up risk being left behind in the next renewal cycle.