India’s automotive industry is anticipated to be ranked the third largest in the world, accounting for about 12% of the country’s GDP. However, rising pollution and high fuel costs are the industry’s biggest problems. In many Indian states, fuel costs over Rs 100 per litre. [1]
Thanks to government policies on electric vehicles in India, electric vehicles are the only way to protect your wallet from high fuel prices and high vehicle maintenance costs.
EVs are cost-effective, do not have carbon emissions, and don’t need expensive maintenance. If you own an electric vehicle, it is imperative to confirm whether you have insurance for your electric car because you have already insured yourself by purchasing an EV and saving money on fuel and maintenance. ##
Let’s examine the need for insurance for electric vehicles:
Why Is Insurance Important For Indian Electric Vehicles
Your electric vehicle will be protected if you have insurance against unintentional damage, in-transit damages, natural disasters, unnatural disasters, etc. A personal accident cover that guards against accidental harm or passing away is also provided to the owner-driver of the insured vehicle.
Claims are subject to terms and conditions set forth under the motor insurance policy.
Why Is Insurance For Electric Vehicles So Expensive?
Insurance serves as a means of financial protection against both liability and physical damage brought on by automobile accidents. Insurance for electric vehicles is more expensive than ICE (Internal Combustion Engine) vehicles. The cost of replacing the battery in an EV is high due to the battery technology used, and as a result, the insurance premium is higher than it would be for an ICE vehicle.
Why Are Electric Car Insurance Premiums Higher?
Electric car insurance costs are higher for several reasons: *
- Due to their lightweight, electric cars are more likely to crash and cause more damage.
- In order for an electric car to function properly, a costly battery that has a set lifespan must be replaced by the owner.
- The high level of technology results in high labour and maintenance costs. This emphasises the benefits of buying electric cars in India.
Benefits of Having Electric Vehicle Insurance
Your electric car insurance policy will cover these liabilities if an unfortunate circumstance arises in which you injure a third party or damage their property. *
In the event of fires, natural disasters, riots, and theft-related losses, the insurance company will typically cover a significant portion of the repair costs. This implies that you won’t have to pay a high repair bill in the event of damage.*
Due to the advanced technologies, electric car prices are higher than conventional ICE (Internal Combustion Engine) vehicles. Additionally, because electric vehicles have a higher Insured Declared Value (IDV), their electric vehicle insurance costs are also higher. The cost of the car’s various parts is high. The electric car’s battery, which makes up a considerable percentage of its value, is the most expensive. The car’s battery expires, and since it can be costly to repair or replace these parts, the owner usually replaces the battery before it stops functioning correctly, which raises the cost of car insurance. *
Claims are subject to terms and conditions set forth under the motor insurance policy.
But the high costs of owning an EV are negligible compared to the fuel costs one saves and the environmental benefits it carries with it!
*Standard T&C apply.
## 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 the sales brochure/policy wording carefully before concluding a sale.
