Festive Season Drives New-Car Insurance Purchases; October Sees 21.5 Per Cent Rise

October’s festive car-buying rush also brought a sharp rise in insurance purchases. New-car insurance policies bought through Policybazaar increased 21.5 per cent from September 2026, according to the company’s analysis. Purchases were also 8.4 per cent higher than in October 2025.

The figures underline how Navratri and Diwali have become important moments for both buying a vehicle and arranging cover. Many buyers time a car purchase around festive offers, new model launches, family plans or the availability of savings and financing. Since a new car cannot be driven on public roads without the required third-party insurance, insurance demand rises along with deliveries.

But the figures do not establish that car owners are changing the time of year when they renew or buy insurance. They relate to new-car policy purchases, which are closely tied to vehicle sales. The increase may reflect more cars being bought and insured during the festive period, rather than a change in insurance-buying habits across the year.

More EVs In October’s Insurance Numbers

Electric cars made up a larger share of new-car insurance purchases in October 2026 than they did a year earlier. They accounted for 23.1 per cent of policies, compared with 13.3 per cent in October 2025 and 7.6 per cent in October 2024. Petrol cars remained the biggest group, at 51.35 per cent, while diesel cars made up 17.7 per cent.

This matters to buyers because an electric car may need protection that differs from a petrol or diesel vehicle. The battery is a high-value component, and the cost and terms of battery-related cover should be checked carefully. In the Policybazaar analysis, battery cover had an attachment rate of about 85 per cent among EV policies.

The study also found high take-up of several add-ons across new-car policies. Zero-depreciation cover was selected with 96.6 per cent of policies, roadside assistance with 90.2 per cent, and return-to-invoice cover with 80.1 per cent. Consumables cover was attached to 75.8 per cent, key and lock replacement to 70.1 per cent, and engine protection to 62.1 per cent.

These figures show that many buyers are choosing protection beyond the basic policy. They do not mean every add-on is suitable for every driver. The terms, limits, exclusions and extra premium can differ between insurers, so buyers should check what a particular cover pays for and whether it duplicates protection they already have.

What Buyers Should Compare Before Choosing A Policy

A new-car buyer should first distinguish between third-party cover, which pays for injury or damage caused to others, and own-damage cover for damage to the insured vehicle. A comprehensive policy generally combines both. The dealer may offer a convenient package, but buyers can compare plans from different insurers before deciding.

Check the insured declared value (IDV), the insurer’s estimate of the car’s value for a total loss or theft. A lower premium can come with a lower IDV, which may reduce the payout in such a claim. Also review the compulsory deductible and any voluntary deductible: a higher voluntary amount can cut the premium but leaves the owner paying more when making a claim.

Add-ons should match the car’s age, use, and location. Check what each add-on actually pays for. Zero-depreciation cover limits depreciation deductions on eligible parts when a claim is settled, subject to the policy’s terms and limits. Return-to-invoice cover can make up the gap between the insured value and the car’s invoice price in specified situations. Roadside assistance can help if the car breaks down during a journey. For engine protection and consumables cover, check which repairs or expenses are included. EV owners should read the battery cover wording, including exclusions and claim requirements.

Finally, compare the claim process, repair network, cashless garage availability and policy exclusions, not just the premium. Ask what documents are required and whether any add-on has a separate limit or deductible. The festive rise suggests that insurance is increasingly being considered alongside the car purchase. Whether that momentum continues beyond October and November will depend on vehicle sales and buyer choices through the rest of the year.

FAQs

Why did new-car insurance purchases rise in October 2026?
Policybazaar’s analysis found purchases were up 21.5 per cent from September, alongside the festive-season increase in car buying.

What should buyers compare when insuring a new car?
Compare the insured declared value, deductibles, exclusions, claim support, and add-on costs and limits, not just the premium.

What should EV owners check in their insurance policy?
Check the battery cover’s terms, exclusions, and claim requirements, as well as whether the cover has separate limits or deductibles.