**Compact Cars and SUVs Dominate Motor Insurance Claims in India**
**Meta Description:** Compact cars and SUVs account for 75% of motor insurance claims in India, with electric vehicles showing high repair costs despite low claim volumes.
**URL Slug:** compact-cars-suvs-motor-insurance-claims-india
**Headline:** Compact Cars and SUVs Lead the Way in India’s Motor Insurance Claims
In India, compact cars and SUVs are responsible for nearly three-quarters of all motor insurance claims, underscoring their prevalence on the roads and in insurance payouts, according to a recent analysis by PolicyBazaar. The report reveals that compact car owners contribute the largest share of claim volumes at 44%, primarily due to urban driving conditions and moderate repair costs, averaging ₹21,084 per claim.
The compact car segment is highlighted as the dominant force in claim volumes, while SUVs follow as the second-largest contributor, accounting for 32% of claims. However, repairs for SUVs are more expensive, averaging ₹29,032 per claim, with a higher frequency of claims at 16%. The increased repair costs for SUVs are attributed to their larger structures and pricier components.
Interestingly, electric vehicles (EVs) represent only 1% of total claim volumes but have the highest claim frequency at 29%, with severe repair costs averaging ₹39,021 per claim. The high repair expenses for EVs are largely due to the cost of batteries and electronic components.
Among major cities, Lucknow has the highest claim frequency at 17%, indicating a prevalence of accident-prone routes and frequent collisions. The National Capital Region (NCR) is noted for high repair costs, with Noida reporting one of the highest claim severities at ₹25,157, followed closely by Gurgaon and Ghaziabad, both exceeding ₹22,000. In contrast, cities like Chennai (1.80%) and Mumbai (1.50%) maintain lower incident rates and repair costs.
The report also indicates that own-damage claims dominate motor insurance payouts, making up 95% of claims, primarily due to minor accidents and bumper-to-bumper repairs. However, less common claims such as vehicle theft, bodily injury, and fatalities can lead to significant payouts.
Additionally, petrol vehicles account for 68% of claim volumes, while EVs remain the most expensive to repair. Newer vehicles, particularly those up to three years old, exhibit the highest claim severity at ₹28,310, reflecting the rising costs of original equipment manufacturer (OEM) parts. Notably, 86% of vehicle owners tend to file claims only when necessary to safeguard their No Claim Bonus (NCB).
Regionally, the report highlights that the northern part of India leads in motor insurance claims, with the southern region following closely, accounting for 31% of the total share.
**FAQ**
**What types of vehicles generate the most motor insurance claims in India?**
Compact cars and SUVs generate the majority of motor insurance claims in India, with compact cars accounting for 44% and SUVs for 32% of total claims.
