India is going green when it comes to its vehicles, and many citizens have opted to choose electric vehicles. Electric cars are all the rage nowadays. But just like any other petrol-powered car, your electric car needs four wheeler insurance.
If you are asking if car insurance for EVs is more expensive – Yes, it is.
In this blog, we discuss why this is the case, what electric car insurance rates are and how you can save on insurance premiums.
Factors Influencing Electric Car Insurance Rates
EV Car Costs
If you compare electric car insurance online, you will observe that the cost of the vehicle — the electric vehicle, in this case — has a direct relationship with the insurance premium. If a vehicle costs more, it needs wider coverage and higher IDV, leading to high insurance premiums.
Spare Parts Costs
Electric car spare parts consist of a battery pack, power inverter, onboard batter charger, electric motor, battery management system, charging port, thermal management system and auxiliary systems. Most of these spare parts, if not all, are very expensive.
Damage in one of these parts can cause you to file a claim for a significant amount. Such cases call for a larger insured value and total coverage. If you want to enjoy the vast scope of coverage, you will have to pay a higher premium than usual.
Battery Replacement
Modern batteries used in electric vehicles can last for 10 to 12 years. However, durability also depends on the kinds of roads you travel on and the distance you cover. This means you’ll need to replace your battery from time to time, leading to an increased electric car insurance premium.
Short Supply of Expertise
EVs are still a relatively new concept in India and most people still choose to drive fuel-powered vehicles. This means you won’t find many service centres or garages that specialise in EV repairs. You may also have a harder time finding replacement parts in case of damage/loss.
As a result, repairs, restoration and replacement work related to electric vehicles are costly. This, again, leads to an increase in electric car insurance premiums.
EV Car Insurance Costs in India (IRDAI)
The battery capacity of an electric vehicle is calculated using kilowatts, and the policy premiums are determined based on the battery’s power.
- EVs not exceeding 30 kW cost ₹1780/- p.a.
- EVs more than 30 kW and less than 65 kW cost ₹2905/- p.a.
- EVs more than 65 kW cost ₹6712/- p.a.
Electric Car Insurance Premium Efficiency Tips
Purchase Policy Online
Purchasing your policy online will help you find relatively cheap electric car insurance. Online, it is easy to compare different policies, wager your requirements, adjust values and add and deduct optional coverages.
Electric car insurance policy providers, like Tata AIG, also offer seamless and streamlined purchase, claim and renewal processes, enhancing your insurance experience.
Opt for Deductibles
Voluntary deductibles are a feature that allows the policyholder to contribute to the compensation or reimbursement of the expenses incurred at the time of claim settlement.
The higher the deductible amount, the lower the premium payable. This feature enables you to manage your electric car insurance rates by significantly reducing the amount of premium payable.
Leverage No-Claim Bonus
A no-claim bonus is a feature that offers you a discount on the premium amount at the time of renewal if you do not file any claim on your vehicle. If you avoid making any claims on your policy, you can enjoy lower electric car insurance rates after the renewal of your policy. This motivates policyholders to drive carefully and maintain their EVs well.
Install Anti-Theft Devices
When you install ARAI-approved anti-theft devices, you can save a substantial amount of money on your premium. The device reduces the chances of damage, partial loss and complete loss of a vehicle due to theft, reducing the risk of filing a claim. This results in a lower electric car insurance premium.
Summing It Up!
Buying car insurance for EVs is just as important as it is for any other car. Even if it is expensive, you can find a way to buy cheap electric car insurance or reduce the premium on the policy, one way or the other. Secure your vehicle using the best electric car insurance.