Electric Car Insurance Cost in India? Pros and Cons
Why Insurance Is Crucial For Indian Electric Vehicles?
Your electric vehicle will be protected if you have insurance against unintentional damage, in-transit damages, natural disasters, unnatural 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?
Insurance serves as a means of financial protection against both liability and physical damage brought on by auto accidents. Insurance for electric vehicles is more costly as compared to ICE vehicles. The cost of changing the battery in an EV is high due to the battery technology used, and as a result, the insurance premium is more than it would be for an ICE vehicle.
A car insurance premium calculator is a convenient tool you may utilise online to check the amount of coverage needed based on your requirements.
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.
- The high level of technology means that maintenance and labour costs are high, and an electric car’s expensive battery has an expiration date, so the owner must replace it before it stops working properly.
Benefits And Drawbacks Of EV Insurance:
Benefits Of Having Electric Vehicle Insurance*
- Your insurance policy will 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 will typically cover more portion of the repair costs. This implies that you won’t have to foot a high repair bill in the event of damage.
- You will receive total financial compensation in the event of any unforeseen circumstances, including accidental passing away, physical injuries, or partial or complete 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. Further, because the Insured Declared Value (IDV) of electric vehicles is higher, their insurance costs are also higher.
- The cost of the car’s various parts is high. The electric car’s battery is the most expensive as it makes up more than 60% of its value. 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 performing optimally, 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 auto mechanics. These factors also result in high labour costs when replacing or repairing electric car parts, another factor in the high price 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.
