Before buying an EV, you should look at it from an insurance point of view.
Whether you have an electric vehicle (EV) or a regular car, you need to protect yourself financially against any damage the vehicle might cause.
Rising gas prices have made driving a car expensive, so people are looking for cheaper ways to get around. In this kind of situation, electric vehicles (EVs) have become a good choice because they are cheap to run and leave almost no carbon footprint. This fuel-efficient choice can go up to 300 km (or more, depending on the model) on a full charge and costs less to run than cars that use fossil fuels.
But whether you drive an electric vehicle (EV) or a regular car, you need to protect yourself financially against any damage the vehicle might cause.
Protecting the costliest part of an EV—the batteries
People who own EVs can buy the same kinds of insurance as people who own gasoline or diesel cars, which have what are called internal combustion engine (ICE) cars. The insurance will cover everything an EV owner needs, including the high-voltage lithium-ion EV batteries, which are the most important and expensive part of the vehicle. These batteries can't be fixed, so if they get broken in any way, the whole thing has to be replaced. Most companies, though, back up their batteries for five to eight years. Also, most EV batteries don't need to be maintained and last between eight and ten years before they need to be replaced. Even if you need a new battery after eight years, your full-coverage auto insurance will pay for it.
Knowing the nitty-gritty of the basics is the key
The two most important parts of a car insurance policy are third-party and own-damage cover. Third-party insurance is required by law and protects you financially if you kill, hurt, or damage someone else's body or property in a car accident or if your high-voltage EV battery catches on fire. The own-damage cover is not required, but it protects you financially against damage to your own car caused by things like accidents, floods, and other things outside of your control.
For example, if your EV catches fire while the battery is charging, the damage from the fire will be covered by the own-damage policy if you use the EV manufacturer's charger or an OEM-approved charger. If you use a charger from a company other than the OEM, the damage won't be covered. To figure out if your car insurance policy is right for your EV, you need to know these details as well as what it covers and what it doesn't cover.
The premium conundrum
The insurance rates for ICE cars and EVs are in the same range. The ministry of road transport and highways, on the other hand, raised the third-party premium rate for different types of ICE vehicles on June 1, while EV owners still get a 15% discount on the third-party premium rate. The cost of own-damage coverage, on the other hand, depends on things like your car's insured declared value (IDV) and where you live.
Insuring the value of EV
The price of an EV is more than that of an ICE car. So, it's important to pick the right IDV for your car, which will protect you financially if it gets stolen or destroyed. You set the IDV, which is the most your insurance company will pay out if your EV is stolen or damaged beyond repair. Higher IDV means a slightly higher premium, but lowering it below the market value of your car increases your liability, which means the insurance company will pay you less. Setting the right IDV will help protect your EV in a big way.
You can choose add-ons like nil depreciation cover, return-to-invoice cover, EMI protection cover, no claim bonus cover, and consumables protection cover for extra coverage, depending on your budget and what you need from your EV. Since EV parts are more expensive than those for ICE cars, getting the right add-ons will help in the long run.
India's market for electric vehicles (EVs) is still small, but it is growing steadily. They don't make much noise, are easy to drive, and don't need much maintenance. From an insurance point of view, the only big difference between EVs and ICE cars is that EVs get a 15 percent discount on third-party premium rates. EVs, on the other hand, free us from worrying about rising gas prices and are better for the environment. Now that you know how insurance works for electric cars, you can choose your next car based on your needs.
