Factors to keep in mind when buying EV insurance


By: Ankit Agrawal, co-founder and CEO, InsuranceDekho

Electric vehicles have now become increasingly ubiquitous on our roads, especially as the central government strives to make India a leading electric vehicle market by 2030. According to industry analysts , the popularity of electric vehicles is increasing and it will probably increase in the future. consumer knowledge is growing and stricter pollution standards are being put in place.

Even though electric cars are more expensive than ICE cars, they have their own advantages. For example, electric cars do not pollute the environment and do not create any type of noise. More importantly, they save money on diesel and gasoline. Yet, as the price of the car rises, so does the expense of protecting the electric car.

Important factors to keep in mind when buying EV insurance:

Before purchasing an insurance policy, consider the following factors:

  • Choose an insurance according to the price of the vehicle: Experts advise that before purchasing insurance, one should determine the price of the vehicle on which coverage is being purchased. Insurance should be provided based on the actual value of the vehicle. You should also check whether the insurance provided is appropriate, so that your share of reimbursement is minimal in the event of misfortune.
  • Keep some special features of the electric car in mind when buying insurance: Electric automobiles operate differently from conventional vehicles. Therefore, before taking out an insurance policy for an EV, consider these particular difficulties. Typical electric cars have a range of 160 to 241 km before their batteries need recharging. The charging time for most electric cars is between 5 and 10 hours. Experts recommend that electrical failures of the battery, power supply, electronics, and mechanics be covered by purchasing appropriate warranty products to cover losses.
  • Additional coverage: When buying insurance, keep an eye on the insured declared value (IDV), i.e. the maximum sum insured set by the insurer and equal to the current value of the vehicle, the type of plan to select and accessibility of supplements. on options. You should check the company record and history, the cashless option and the CSR (Claim Settlement Ratio).
  • Additional zero amortization insurance: Since these cars are expensive to maintain and purchase, top-up coverage without depreciation is beneficial. The insurance company estimates the depreciation value of the car throughout a claim, which would then be subtracted from the claim amount. With the help of zero amortization supplemental coverage, you will be able to receive the claim amount without any depreciation deduction made by the insurance company.
  • Battery costs require separate top-up coverages: These electric vehicles are made with state-of-the-art technology, which means there is the use of skilled mechanics. Battery and specialist parts costs are quite high, which is why separate additional covers are recommended. Although additional coverages are required for an electric car, options such as engine protection, which are offered with comprehensive car insurance, may differ due to the differences between battery-powered vehicles and regular-fuel cars. Losses due to battery leakage, battery charger, transporting the motor vehicle and providing on-site assistance should all be considered optional coverages.

Take away

Although electric vehicles are more expensive than motor vehicles, they can be beneficial in the long run. As electric vehicles can be a one-time investment, people should consider purchasing green vehicle insurance so that they can protect themselves and their car from financial loss that may occur due to an unfortunate event involving the insured vehicle.

Warning: The views and opinions expressed in this article are solely those of the original author. These views and opinions do not represent those of Indian Express Group or its employees.


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