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EV Insurance Guide: Key Factors To Bear in Mind

Over the past few years, EV sales have witnessed significant growth. The new laws and incentives introduced by the Government have made EVs more accessible to consumers. According to a report by Mordor Intelligence, the EV market in India is predicted to expand at aCAGR of 47.09%(Source taken by Mordor Intelligence) between 2022 and 2027.

Several leading vehicle manufacturers such as Mahindra, Tata, Hyundai and MG have launched EVs in India. Although the push toward new electric automobiles in India is only getting started, it has a bright future since the Government is taking positive efforts to boost its popularity.

However, the scarcity of insurance companies offering car insurance online for electric vehicles is a concern for EV owners. In an attempt to encourage consumers to buy EVs, the Indian Insurance Regulatory and Development Authority (IRDAI) has lowered third-party liability insurance for privately owned EVs by 15% (Source taken by irdai.gov)compared to traditional petrol and diesel vehicles.

Buying car insurance for an EV is quite different from buying one for a petrol or diesel car. Here are some factors to consider before buying electric car insurance online.

Factors to Consider While Buying an EV Insurance

1. Check the type of insurance coverage

Presently, there are no specific insurance plans available for electric vehicles. Hence, you can purchase either mandatory third-party insurance or a comprehensive plan.

Third-party insurance plans are the basic insurance coverage necessary to establish legal compliance and provide coverage for third-party damages and injuries. This insurance plan provides coverage for any legal liability that may result from injury or damage to a third-party person or property.

Comprehensive insurance provides coverage for both your car’s damages and legal liabilities of the third party. Therefore, this insurance will pay for any repairs necessary for your electric vehicle. Additionally, these plans can be customised with add-ons to enhance coverage.

2. Choose the right Insured Declared Value (IDV)

Insured Declared Value or IDV is the maximum compensation an insurance company will provide in the case of the complete loss or theft of the insured vehicle. Therefore, it is important to set the correct IDV for your EV. For comprehensive insurance, the IDV may be changed up to a certain limit. Don’t under-insure your vehicle for a cheaper premium as doing so will cause you to face loss in the event of irreparable damage or theft.

3. Check for a zero depreciation add-on

This add-on cover helps you maintain your car’s value as close to its original value as possible. This is despite multiple claims. When a claim is made, the insurance provider determines the car’s depreciation value, which is then reduced from the claim amount. With zero-dep add-on cover, the total value of the damage is covered and no reductions for depreciation are made from the claim amount.

4. Check for extra add-on covers for EV technology

Much like your smartphone, modern electric cars are developed and equipped with highly advanced technology and need specialist technicians to fix them in case of damage.

Some parts such as batteries could be quite expensive to repair. Therefore, to cover these parts, you must get additional add-on covers. For instance, when purchasing car insurance online for petrol and diesel vehicles, add-ons such as engine protection and roadside assistance covers are available.

The possibility of battery damage, battery leaks, damaged charging connections, towing the car to the closest charging point, and providing on-the-spot assistance should all be considered while choosing add-on covers.

5. Make sure to ensure the EV’s actual pricing

Before choosing the insurance cover, find out the actual value of the car at which the insurance cover is being provided. The right amount of insurance should be provided for the car. If not, you will be required to pay the penalty at the time of claim settlement.

6. Check for add-ons covering battery costs

EV charging technology is still in the development process. As EVs often need to be plugged in at roadside charging stations for relatively long periods, drivers must be mindful of their duty and care towards the public. Although many policies do not provide coverage for this, practising due diligence is essential.

7. Lookout for the special attributes of the e-car

Working of an electric and conventional vehicle varies in several ways. Therefore, when picking car insurance online for an EV, make sure to take these differences into account.

A standard EV can travel up to 200 kilometres before its batteries run out. Most electric vehicles require around 5-10 hours to fully charge. Experts advise buying proper warranty items to cover losses for electrical failures of the battery, power supply unit, and other electronic and mechanical components.

Conclusions

Buying an electric vehicle calls for careful thinking. The initial costly expense may put many people off, but the long-term advantages make it completely worth it. If you choose to invest in an EV someday, make sure to safeguard your investment against any unforeseen circumstances. By opting for EV car insurance online, you can protect your investment and your finances at the same time. Remember to thoroughly research and get a policy that offers the best coverage for all your needs.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to policy wordings and prospectus before concluding the sales.

 

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