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All You Need To Know About Insurance For Electric Vehicles

insurance for electric vehicles

With the increasing cost of fuel and more and more awareness about the impact of pollution created by cars and bikes, many people are now opting for electric vehicles. While these vehicles are far more economical to use, they are still expensive to purchase. The maintenance of these vehicles is also considerably higher than that of traditional vehicles. By opting for the right electric car insurance policy, however, you can avoid extra expenses on repairs and damages.  While a third-party vehicle insurance policy is mandatory, depending upon your need you can choose either a stand-alone own-damage cover or comprehensive insurance.

Just like a regular car insurance policy for diesel, petrol, and CNG vehicles, car insurance for electric vehicles also offers financial protection to your car against accidental damages, theft, fire, riots as well as damages and injuries to third parties.

What Are Electric Vehicles Or Evs?

While many people choose to invest in electric vehicles, it is not a surprise if you are still confused about the features. The primary difference between fuel cars and electric cars is that an electric car/vehicle runs on batteries. Yes, instead of running on fuel like petrol or diesel, these cars come with pre-installed rechargeable batteries.

Understanding An Electric Car Insurance

To meet the growing demand for electric vehicles, more and more auto manufacturers are coming up with different categories of electric vehicles to meet the needs of vehicle owners. With such wider options like conventional EVs and Hybrid EVs, many insurance providers are offering car insurance policies for electric vehicles.

Just like a regular car insurance policy for diesel and petrol vehicles, insurance for electric vehicles offers financial coverage against damages, theft, and other car insurance benefits. By opting for the right coverage and the right kind of policy, you can meet the financial needs of your car without burning a hole in your savings.

How Is A Car Insurance Policy For Electric Cars Different From Fuel Cars?

While most of the benefits of both car insurance policies remain the same, you will still need to pay slightly more for the comprehensive insurance of an electric car. This is due to the higher market value of the electric vehicle as well as expensive technology and higher cost of repairs.

Is A Car Insurance Policy Mandatory For Electric Cars?

As per the Motor Insurance Act of India, all vehicles registered in India need to have mandatory third-party insurance. This rule applies to both conventional fuel cars as well as EVs. Hence, a car insurance policy is mandatory and must not be skipped. Besides offering financial protection, it also helps you meet legal requirements.

Types Of Car Insurance Available For Electric Cars

Just like fuel-operated cars, electric cars also have two basic types of insurance policies available across insurers – third-party insurance and comprehensive insurance policy. while a third-party cover will offer coverage for third-party liabilities arising in the event of an accident, comprehensive insurance for electric vehicles will cover damages to your car, theft, personal accident coverage as well as the benefits of third-party insurance.

Benefits Of Car Insurance Policy For Electric Cars

  1. Protection against liabilities arising for the third party: In the event of an accident or a situation where a third party gets an injury or damage, your insurance policy helps in covering the financial liabilities arising out of that situation.

  2. It helps you meet the legal requirements: Since it is mandatory for all Indian vehicles to have a minimum of third-party insurance, having a car insurance policy will help you stay legally compliant and avoid the risk of penalties and fines.

  3. Offers financial assistance for damages and repairs: With the higher cost of repair of electric vehicles and newer and more expensive components involved, it is better to have comprehensive insurance coverage so that these costs can be met by the insurance company. With the damages covered by your insurance plan, you have one less thing to worry about in the event of theft, riots, fire, and accidents.

  4. Personal accident coverage: Along with comprehensive insurance for your electric car, the policy also gives a mandatory personal accident cover which offers compensation against injuries, total or partial disabilities, and accidental death.

Things To Consider Before Purchasing A Car Insurance Policy For Electric Vehicles

While all insurance benefits might be the same for electric and fuel cars, you must keep in mind certain factors when opting for insurance for an electric car. Here are some of these factors:

1.     Insured declared value: This value refers to the maximum amount of assistance you can claim in case of theft or a total loss of the vehicle. Since electric cars are more expensive, the IDV of the same must be higher and sufficient to cover the losses.

  1. Additional benefits: When looking for an electric car insurance policy, do look for available add-on covers, also known as riders. Some electric vehicle-related costs are damage to the charging connector, leakage in the battery, battery damage, and vehicle towing. Look for add-on covers meeting these needs.

  2. The benefit of cashless repair: Having a cashless benefit makes it easier to make a claim and allows for instant repair at partner centers. Look for more cashless service partners in your comprehensive insurance plan.

While the cost of buying electric car insurance is higher than fuel cars, purchasing these cars come with numerous benefits that make the purchase worthwhile. Some of them are low maintenance, lesser running costs, and reduced pollution levels. A car insurance policy for electric vehicles offers protection and financial assistance at the time of damage or accident along with providing protection against liabilities arising from death or damages to people involved. It is essential that you choose a car insurance policy for your electric cars if you still haven’t!

Read more – Want is an Electric Vehicle? Here’s Everything You Need to Know

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