Electric Car Insurance Cost In India? Pros And Cons

Congratulations, you are in a win-win situation if you own an electric vehicle. It is essential to confirm whether you have insurance for your electric cars because you have already insured yourself by purchasing an EV and saving money on fuel and maintenance. Let’s examine the need for insurance for electric vehicles.

Why Is Insurance Crucial For Indian Electric Vehicles?

Your electric vehicle will be protected if you have insurance against unintentional damage, in-transit damages, natural disasters, artificial disasters, etc. A personal accident cover that guards against accidental harm or passing away is also provided to the owner-driver of the insured vehicle. *

Why Is Insurance For Electric Vehicles So Expensive?

Motor insurance serves as a means of financial protection against both liability and physical damage brought on by car accidents. Insurance for electric vehicles is more expensive than for ICE vehicles. The cost of replacing the battery in an EV is high due to the battery technology used, and as a result, the insurance premium is higher than it would be for an ICE vehicle.

Why Are Electric Car Insurance Premiums Higher?

Electric car insurance costs are higher for several reasons.

• Due to their lightweight, electric cars are more likely to crash and cause more damage.
• A highly-priced battery that has an expiration date powers an electric car, so the owner must change it before it stops functioning correctly.
• Because of maintenance, high levels of technology and labour costs are high.
• The premium rates have been set at a 15% concession compared to other cars. You can use a car insurance calculator to estimate the costs of premiums.

Benefits And Drawbacks Of EV Insurance

 Benefits Of Having Electric Vehicle Insurance

• Your insurance policy may cover these liabilities if an unfortunate circumstance arises in which you injure a third party or damage their property.
• In the event of fires, natural disasters, riots, and theft-related losses, the insurance company may typically cover a significant portion of the repair costs. This implies that you won’t have to pay a high repair bill in the event of damage.
• You may receive full financial compensation in the event of any unforeseen circumstances, including accidental passing away, physical injuries, or partial or total disabilities resulting from an accident.

 The Drawbacks Of Having Electric Vehicle Insurance

• Due to the advanced technologies, electric car prices are higher than conventional ICE vehicles. Additionally, because electric vehicles have a higher Insured Declared Value (IDV), their insurance costs are also higher.
• The cost of the car’s various parts is high. The electric car’s battery, which makes up more than 60% of its value, is the most expensive. The car’s battery expires, and since it can be costly to repair or replace these parts, the owner usually replaces the battery before it stops functioning correctly, which raises the cost of car insurance.
• Electric vehicle maintenance and repair require specialised knowledge and abilities, which not all mechanics possess. There are fewer electric car mechanics in India than conventional car mechanics. These factors also result in high labour costs when replacing or repairing electric car parts, another factor in the high cost of electric car insurance policies.

*Standard T&C Apply

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.