'Compact cars and SUVs drive three-fourths of motor insurance claims'

Compact cars and SUVs together account for nearly three-fourths of all motor insurance claims in the country, highlighting their dominance on Indian roads and in insurance payouts, an analysis report by PolicyBazaar has said.

- TBG NETWORK

The report showed that compact car owners generated the highest share of claim volumes at 44 per cent, largely due to city driving conditions and moderate-value repairs, which cost an average of Rs 21,084 per claim. It stated “compact cars segment dominates claim volumes with 44 per cent share.” The report also shared that the SUVs emerged as the second-largest contributor with a 32 per cent share, but with a higher repair cost magnitude of Rs 29,032 and a comparatively high frequency of 16 per cent. The report noted that SUV-related repairs are costlier due to bigger vehicle structures and higher component pricing. Interestingly, electric vehicles (EVs) contributed only 1 per cent of