Electric cars are growing more popular in India by the day. New electric cars that are very affordable, charging infrastructure that expanding rapidly and growing concerns over air quality levels in Indian cities are some of the factors that prompt many to opt for electric cars.
While India’s central and state government offer attractive subsidies on electric cars, there are some mandatory charges. One such charge is car insurance. Every electric car sold in India needs to have a valid car insurance policy to be road-worthy.
While your electric car’s insurance works similar to what a motor insurance policy does for petrol and diesel engine equipped cars, there are crucial differences. Let’s dive deeper into things that nobody tells you about motor insurance for your electric car. *
Battery capacity decides third party premium
While third party premiums are usually the same across most petrol and diesel engined cars, they vary in electric cars based on battery capacity. If your electric car has a lower battery capacity, you end up paying a lower third-party insurance. So, third party insurance for an electric car with battery capacity under 30 KW is just Rs. 1,761. Electric cars with battery capacity between 30-65 KW get a third-party insurance premium of Rs. 2,738 while electric cars with batteries bigger than 65 KW have a third-party premium of Rs. 6,707. Notably, electric car insurance third party premiums are cheaper than conventional cars. The Insurance Regulatory and Development Authority of India (IRDAI) has introduced third-party motor insurance rates for EVs at a 15% discount to promote the use of eco-friendly EVs. *
EVs have similar risks as ICE cars
Out on the road, electric vehicles (EV) have the same levels of risk as petrol/diesel powered cars. This makes electric car insurance all the more important and one mustn’t get carried away with lower third-party premiums for electric cars. Therefore, it’s critical that you – as an electric car owner – opt for a comprehensive car insurance plan that covers own damage as well as third party damage. *
Comprehensive premiums are higher on EVs
While the 15 % discount that the IRDAI offers on third party EVs premiums makes third party insurance cheaper, the same is not the case for the overall (comprehensive) premium. Since electric cars cost more than equivalent petrol/diesel siblings, the overall cost of a comprehensive insurance plan for an electric car is slightly higher than that of a petrol/diesel car. Other factors that are responsible for higher electric car insurance premiums include higher repair cost of EVs, smaller network of specialized garages that can fix electric cars and also the high cost of battery replacement. *
Getting flood damage protection is important
Flooded roads are common place during the Indian monsoon. Driving across flooded roads presents a unique risk to electric cars, particularly to the battery pack. Since the electric car’s battery is generally placed at the lowest point of the vehicle, any underbody damage while wading through water and striking unseen objects could potentially damage the electric car’s battery. Since the battery pack is frightfully expensive, getting flood damage protection is all the more important for an electric car. *
Since battery depreciation is high, getting zero dep insurance is important
The battery pack makes up for nearly 40 % of the electric car’s overall cost, and the battery pack is also the item that depreciates quite heavily during the life cycle of an electric car. Not opting for zero depreciation insurance for your electric car can leave you with a big hole in the wallet in case there’s any damage to the vehicle’s battery pack. Therefore, opting for a zero-depreciation insurance policy for your electric car is very important. *
* All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.
Keyword: Your New Electric Car Requires An Electric Car Insurance Policy: A Quick Start Guide