The market for insured vehicles has grown to $4.4 trillion, according to new data from Recode, but that doesn’t mean car insurance is cheap.
A new study from Accenture says that the average auto insurance policy in India is now worth $14,000, while the average car insurance policy is worth $28,000.
“The average premium for auto insurance in India has gone up by nearly 40% since the beginning of this year,” Accenture’s report says.
“This is an increase of about $2,000 per year, and the average annual premium per policy is now $27,000.”
Here’s how the average insurance policy costs in the US: “For an average policy, the company charges a premium of about 3%, which is almost twice as much as in India,” Accent report says, adding that the median insurance premium in the country is around $1,600.
Accenture is estimating that the premium for Indian auto insurance has now jumped to nearly $24,000 for a policy.
The company also found that the market for auto-related policies in India dropped by nearly 2% in 2016, from $15.9 billion to $13.5 billion.
“There is a significant number of drivers that have stopped driving, with a drop of roughly 30%,” Accented says.
The report also says that more people are using their cars for leisure, as opposed to driving a car for work.
“Most drivers are driving for leisure and for other purposes, such as for shopping, or for recreation,” the report says