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Factors To Keep In Mind While Buying An EV Insurance

The Financial Express logo The Financial Express 2 days ago guest
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By: Ankit Agrawal, Co-founder and CEO, InsuranceDekho

Electric vehicles have now become increasingly ubiquitous on our roadways, especially as the central government strives to make India a leading electric vehicle market by 2030. As per industry analysts, the popularity of e-vehicles is expanding and it will likely grow in the future as consumer knowledge grows and stricter pollution standards are implemented. 

Even though e-cars are more expensive than ICE-cars, they have their own set of benefits. For example, e-cars do not pollute the environment and also do not create any type of noise. Most critically, they help save money on diesel and petrol. Yet, as the price of the car rises, so does the expense of protecting the electric car.

Important factors to keep in mind while buying an EV insurance:

Before purchasing an insurance policy, consider the following factors:

  • Choose insurance according to the price of the vehicle: Experts advise that before purchasing insurance, one must determine the price of the vehicle about which coverage is being purchased. Insurance should be supplied based on the vehicle’s true worth. You should also check to see if the insurance supplied is appropriate, so that your part of paying claim is minimum during any unfortunate happens.
  • Keep in mind some special features of the e-car while buying insurance: Electric automobiles work in a different way than conventional vehicles. As a result, before purchasing an insurance policy for an EV, consider these special difficulties. Typical electric cars have a range of 160km to 241km before their batteries need to be recharged. The charging time for most electric cars is somewhere between 5 and 10 hours. Experts recommend that electrical failures of the battery, power supply unit, electronic and mechanical be covered by purchasing appropriate warranty goods to cover losses.
  • Add-on coverages: When purchasing insurance, keep an eye out with the insured declared value (IDV) i.e, the maximum sum assured fixed by the insurer provider and equal to the current value of the vehicle, the kind of plan to select, and the accessibility of add-on options. You should look out the record and history of the company, the cashless option and CSR (Claim Settlement Ratio).
  • Zero-depreciation add-on insurance: Because the maintenance and purchase of these cars is expensive, zero depreciation add-on coverage is beneficial. The insurance company estimates the depreciation value of the car throughout a claim, which would be subsequently subtracted from the amount of the claim. With the help of zero depreciation add-on cover you will be able to receive the claim amount without any depreciation deductions made by the insurance company. 
  • Battery costs need separate add-on covers: These EVs are made with cutting-edge technology which means that there is the use of skilled mechanics. The battery costs and specialised parts are quite high, that’s why it is recommended to have separate add-on covers. While add-on covers are required for an electric car, add-ons such as engine protector, which are offered with complete car insurance, may differ due to the differences between battery-powered vehicles and regular fuel cars. Loss from battery leakages, battery charger, transportation of the motor vehicle and providing on-the-spot help should all be considered as optional covers.

Take Away

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

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

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