When the monsoon arrives, so do the repair bills for vehicle owners due to rain-related damages arising mainly out of urban floods and waterlogging issues. According to the latest data from Policybazaar.com, an online insurance marketplace, the average motor insurance claim during the monsoon months has gone up from Rs 30,000 to Rs 40,000, which is a steep 33 per cent jump.
The main culprit? Engine and electrical damage caused by waterlogging. And yet, 80 per cent of vehicle owners don't have engine protection cover, one of the very things that could help soften the financial blow.
This is not a new problem, but the gap between risk and coverage seems to be growing. While half the policyholders do have zero depreciation add-ons, the rest are still left paying a significant chunk from their own pockets when damage hits. And engine repairs, especially after flooding, are among the costliest.
What does the data say?
The report notes that Roadside Assistance (RSA) cover is catching on, with around 75 per cent of customers now including it in their policies. It has become particularly useful during monsoons, when sudden breakdowns, failed ignitions, or waterlogged roads are all too common, particularly in congested urban areas.
However, the claim story paints a rather complex picture of motor insurance-related trends. Though metro cities like Mumbai, Delhi, Bengaluru, and Chennai regularly show up in motor claim charts, about three-fourths of monsoon-related claims between 2023 and 2025 came from Tier-2 and Tier-3 cities. The data shows that even smaller cities are struggling with poor drainage systems, which are worsened by increasing vehicle density on roads.
This is how people are opting for different covers to get protection against the rainy season:
Engine protection cover, which is a critical add-on during monsoon seasons, was opted for by around 20 per cent of policyholders
Around 50 per cent of policyholders took zero depreciation cover
Claims Trends During Monsoon Season
The motor insurance claims during the rainy months (between June to September) went up by almost 13 per cent from 2023-2024. A 3.2 per cent rise was recorded in 2024 while 9.4 per cent spike was reported this year (in 2025) alone.
Such a rise in claims is not just about heavy rainfall but deteriorating road quality and urban preparedness during the monsoon season, more so in smaller cities now.
The type of vehicles being hit the hardest is also telling:
Hatchbacks, which typically have lower ground clearance, account for 54 per cent of monsoon claims, followed by sedans (26 per cent) and SUVs (20 per cent).
SUVs, though involved in fewer incidents, cost the most to repair, with an average monsoon claim amount of Rs 60,000, significantly higher than the Rs 35,000 for hatchbacks.
Commenting on the trend, Paras Pasricha, business head of motor insurance at Policybazaar.com, said, "This year, the rains have exposed more risks than resilience. More concerning is that 80 per cent of people remain unaware of critical protection covers like engine protection, a gap seen across both metros and non-metros. While metro cities like Delhi, Mumbai, Chennai, Pune, Nasik, Bengaluru, and also hill state Himachal, report the highest number of claims, non-metros account for 75 per cent of all monsoon-related motor insurance claims, driven by the sheer volume of Tier-2 and Tier-3 towns across India."
He added that essential add-ons like engine protection, roadside assistance, and zero depreciation cover are no longer optional. "These covers don't just ease the financial blow; they offer peace of mind in unpredictable weather," he said.
As the monsoon months become increasingly intense each year, the data clearly signals that drivers, especially in non-metros, need to take weather risks more seriously when buying or renewing motor insurance.
