Kerala Vehicle Owners Choose Motor Insurance Add-Ons for Enhanced Protection

KOCHI:
Kerala’s unique geography, high rainfall, and dense urban traffic make vehicle ownership as much about preparedness as mobility. According to TATA AIG’s data, there has been a noticeable shift among vehicle owners in Kerala towards more comprehensive motor insurance coverage, driven largely by increased awareness of roadside accidents and breakdowns.

TATA AIG’s data indicates a rise in the uptake of comprehensive motor insurance policies in Kerala over the past few years, with a growing number of customers opting for add-ons such as roadside assistance, engine secure, and depreciation reimbursement cover. This trend reflects a proactive approach by motorists who are increasingly factoring in weather-related disruptions and repair costs while purchasing or renewing their policies.

Between FY23 and FY25, TATA AIG observed a significant growth in motor policy issuance in Kerala where monsoon-relevant add-ons were a key consideration. Among Kerala cities, Kochi ranked top in adoption of enhanced motor coverage underscoring heightened risk awareness in regions prone to heavy rainfall and waterlogging.

Dinesh Mosamkar, SVP, Consumer Underwriting, TATA AIG, says, “Driving conditions in Kerala make it important for vehicle owners to stay prepared. Choosing a comprehensive motor insurance policy with the right add-ons can help manage breakdowns and repair costs and reduce financial stress when unexpected issues arise.”

According to the Road Safety Action Plan for Kerala State (2025), more than 36% of national and state highways in the state are classified as crash vulnerable, with significant stretches prone to collisions due to traffic density and road conditions. Kerala also has one of the highest vehicle ownership rates in India, with total registered vehicles crossing 1.82 crore and about 425 vehicles per 1,000 people, according to Ministry of Road Transport and Highways data.

TATA AIG’s insights show an increase in the selection of roadside assistance and emergency support services among Kerala-based policyholders vis-a-vis policy holders from other parts. These services are increasingly viewed as essential, especially during the monsoon months when vehicle breakdowns due to flooded roads, battery failure, or mechanical issues are more common.