Are you considering an EV car as your next vehicle? The insurance is more expensive for EV cars than an ICE vehicle.
Automobiles are headed in an electric direction. While they may cost a bit more initially, EV can also save money over a longer period of time compared to vehicles that run on petrol or diesel. We examine their insurance, which differs from those that run on diesel and petrol.
The insurance for electric vehicles(EV) differs from that for internal combustion engines in a few key ways
The cost is more expensive– EV insurance
“EVs are more costly to repair, and there is less data available on the risks associated with insuring them,” says Sanjiv Bajaj, chairman and MD at BajajCapital.
The coverage includes: EV insurance
Insurance policies for electric vehicles typically include third-party liability, comprehensive coverage, and collision coverage.
The battery is an important and costly component of an electric vehicle, so insurance policies may cover degradation or damage to it, says Animesh Das, ACKO’s chief underwriting officer.
Coverage of charging equipment
“If your charging equipment is stolen or damaged, you should make sure that your insurance policy covers it,” says Bajaj.
Assistance with roadside emergencies
If your EV breaks down, you will need to be able to get it towed to a service station. Roadside assistance is another important coverage to consider for EV owners. In worst-case scenarios, your EV may even run out of battery, and you will need to have it towed. While some electric vehicle insurance policies offer roadside assistance as an add-on, others may not.
Insurance for electric vehicles is more expensive
“EVs’ lightweight and instant torque make them vulnerable to extensive damage, increasing the insurer’s liability and increasing the cost of insurance policies,” says Das.
Currently, most original equipment manufacturers (OEMs) import batteries, increasing vehicle costs further, according to Mayur Kacholiya, head, motor product, Digit insurance.
Furthermore, EVs are relatively new, and stable trends regarding their risks are just emerging. Battery costs are high, and any damage to the battery may result in higher claims outflow (equivalent to total vehicle loss). In addition to servicing or repairs, electric vehicles require highly qualified specialised mechanics, which increases the cost of labour. Kacholiya explains that all these factors contribute to the premium price of electric cars.
As a result of higher vehicle costs, the own damage (OD) premium would be higher for EVs. However, the third-party premium, which is tariffed and decided by the regulator, is 15% lower for EVs.
When insuring your electric vehicle, keep these things in mind
There may be specific add-ons for EV vehicles depending on the insurer. “Since components of an EV vehicle are different, there may be specific add-ons,” says Kacholiya.
The damages can result from water ingression, short circuits, or external causes like rat bites or animal attacks. The battery of the vehicle or the electrical panel of the charging point, or the cable of the vehicle charger, can be damaged. Insurers may also offer specific add-ons related to EVs that cover these additional risks.
A battery cover may be a good idea if you are concerned about the cost of repairing or replacing your EV’s battery. The add-ons that you choose will depend on your individual needs and budget. For people who frequently drive long distances, Bajaj recommends purchasing roadside assistance.
Before purchasing EV insurance, it is important to understand what is covered and what is excluded.
Are you considering an EV car as your next vehicle? The insurance is more expensive than an ICE vehicle.
Automobiles are headed in an electric direction. While they may cost a bit more initially, they can also save money over a longer period of time compared to vehicles that run on petrol or diesel. We examine their insurance, which differs from those that run on diesel and petrol.
The insurance for electric vehicles differs from that for internal combustion engines in a few key ways
The cost is:
“EVs are more costly to repair, and there is less data available on the risks associated with insuring them,” says Sanjiv Bajaj, chairman and MD at BajajCapital.
The coverage includes:
Insurance policies for electric vehicles typically include third-party liability, comprehensive coverage, and collision coverage.
The battery is an important and costly component of an electric vehicle, so insurance policies may cover degradation or damage to it, says Animesh Das, ACKO’s chief underwriting officer.
Coverage of charging equipment
“If your charging equipment is stolen or damaged, you should make sure that your insurance policy covers it,” says Bajaj.
Assistance with roadside emergencies
If your EV breaks down, you will need to be able to get it towed to a service station. Roadside assistance is another important coverage to consider for EV owners. In worst-case scenarios, your EV may even run out of battery, and you will need to have it towed. While some electric vehicle insurance policies offer roadside assistance as an add-on, others may not.
Insurance for electric vehicles is more expensive
“EVs’ lightweight and instant torque make them vulnerable to extensive damage, increasing the insurer’s liability and increasing the cost of insurance policies,” says Das.
Currently, most original equipment manufacturers (OEMs) import batteries, increasing vehicle costs further, according to Mayur Kacholiya, head, motor product, Digit insurance.
Furthermore, EVs are relatively new, and stable trends regarding their risks are just emerging. Battery costs are high, and any damage to the battery may result in higher claims outflow (equivalent to total vehicle loss). In addition to servicing or repairs, electric vehicles require highly qualified specialised mechanics, which increases the cost of labour. Kacholiya explains that all these factors contribute to the premium price of electric cars.
As a result of higher vehicle costs, the own damage (OD) premium would be higher for EVs. However, the third-party premium, which is tariffed and decided by the regulator, is 15% lower for EVs.
When insuring your electric vehicle, keep these things in mind
There may be specific add-ons for EV vehicles depending on the insurer. “Since components of an EV vehicle are different, there may be specific add-ons,” says Kacholiya.
The damages can result from water ingression, short circuits, or external causes like rat bites or animal attacks. The battery of the vehicle or the electrical panel of the charging point, or the cable of the vehicle charger, can be damaged. Insurers may also offer specific add-ons related to EVs that cover these additional risks.
A battery cover may be a good idea if you are concerned about the cost of repairing or replacing your EV’s battery. The add-ons that you choose will depend on your individual needs and budget. For people who frequently drive long distances, Bajaj recommends purchasing roadside assistance.
Before purchasing EV insurance, it is important to understand what is covered and what is excluded.
Automobiles are headed in an electric direction. While they may cost a bit more initially, they can also save money over a longer period of time compared to vehicles that run on petrol or diesel. We examine their insurance, which differs from those that run on diesel and petrol.
The insurance for electric vehicles differs from that for internal combustion engines in a few key ways
The cost is-EV Insurance
“EVs are more costly to repair, and there is less data available on the risks associated with insuring them,” says Sanjiv Bajaj, chairman and MD at BajajCapital.
The coverage includes:
Insurance policies for electric vehicles typically include third-party liability, comprehensive coverage, and collision coverage.
The battery is an important and costly component of an electric vehicle, so insurance policies may cover degradation or damage to it, says Animesh Das, ACKO’s chief underwriting officer.
Coverage of charging equipment-EV Insurance
“If your charging equipment is stolen or damaged, you should make sure that your insurance policy covers it,” says Bajaj.
Assistance with roadside emergencies
If your EV breaks down, you will need to be able to get it towed to a service station. Roadside assistance is another important coverage to consider for EV owners. In worst-case scenarios, your EV may even run out of battery, and you will need to have it towed. While some electric vehicle insurance policies offer roadside assistance as an add-on, others may not.
Insurance for electric vehicles is more expensive-EV Insurance
“EVs’ lightweight and instant torque make them vulnerable to extensive damage, increasing the insurer’s liability and increasing the cost of insurance policies,” says Das.
Currently, most original equipment manufacturers (OEMs) import batteries, increasing vehicle costs further, according to Mayur Kacholiya, head, motor product, Digit insurance.
Furthermore, EVs are relatively new, and stable trends regarding their risks are just emerging. Battery costs are high, and any damage to the battery may result in higher claims outflow (equivalent to total vehicle loss). In addition to servicing or repairs, electric vehicles require highly qualified specialised mechanics, which increases the cost of labour. Kacholiya explains that all these factors contribute to the premium price of electric cars.
As a result of higher vehicle costs, the own damage (OD) premium would be higher for EVs. However, the third-party premium, which is tariffed and decided by the regulator, is 15% lower for EVs.
When insuring your electric vehicle, keep these things in mind-EV Insurance
There may be specific add-ons for EV vehicles depending on the insurer. “Since components of an EV vehicle are different, there may be specific add-ons,” says Kacholiya.
The damages can result from water ingression, short circuits, or external causes like rat bites or animal attacks. The battery of the vehicle or the electrical panel of the charging point, or the cable of the vehicle charger, can be damaged. Insurers may also offer specific add-ons related to EVs that cover these additional risks.
A battery cover may be a good idea if you are concerned about the cost of repairing or replacing your EV’s battery. The add-ons that you choose will depend on your individual needs and budget. For people who frequently drive long distances, Bajaj recommends purchasing roadside assistance.
Before purchasing EV insurance, it is important to understand what is covered and what is excluded.
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