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7 Factors To Consider When Buying Electric Vehicle Insurance
Sep 17, 2023

7 Factors To Consider When Buying Electric Vehicle Insurance

The benefits of buying electric cars in India may be numerous, but one cannot let that overshadow the fact that owning any type of vehicle is as much a responsibility as it is a convenience. Whether it is an electric car or bike, you ought to buy insurance for the same to stay financially protected.* Here are seven factors to consider when purchasing electric vehicle insurance for your car or bike, so you may choose the right policy for yourself.

1.    Type of policy

Broadly, vehicle insurance policies can be divided into two types:
  1. Third-party insurance covers damage to other vehicles or property if you are at fault in an accident.
  2. Comprehensive insurance covers damage to your vehicle, no matter who is at fault.
If you are only concerned about covering damage to other vehicles or property, then third-party insurance may be sufficient. However, if you want to be fully protected, then comprehensive insurance is the way to go.*

2.    Coverage*

The coverage required may vary from person to person. Beyond needs, it also depends on the type of vehicle you have purchased. Moreover, the coverage amount may influence the premium you have to pay for the policy. When buying the policy, you may not necessarily be given options to choose your coverage amount, but you may be able to customise some details.

3.    Mode of Purchase

An electric vehicle policy in India can be purchased online or offline. It is often the case that buying a policy online can help you spend lesser on the purchase. Moreover, you may be able to have the scope to compare your options when buying an electric vehicle policy online. You can do this yourself, so you may have more control over the details, and the policy is mailed to you soon after the purchase. ## On the other hand, when buying electric vehicle insurance offline, you may be afforded the assistance of an insurance agent, who may handle the process on your behalf. If you seek such assistance, offline insurance purchase process may be more suited to your taste.

4.    Add-ons*

In addition to the basic coverage options, there are a number of add-ons that you may want to consider. Some of these add-ons include:

·         Zero depreciation Add-on cover

This coverage pays for the full replacement cost of your vehicle, even if it has depreciated. It may not be available for older vehicles, and it is best to be added to your comprehensive plan from the first policy purchase.*

·         Personal accident Add-on cover

This cover pays for medical expenses and death benefits for you and your passengers in case of an accident. This add-on cover needs to be purchased with your policy if you do not already have a personal accident add-on cover.*

·         Roadside assistance add-on

This provides roadside assistance services, such as towing and flat tire repair. It can help you if you find yourself stranded because of car troubles and need assistance.*

·         Battery protection cover

This cover pays for repairs or replacement of your vehicle's battery if it is damaged due to a mechanical breakdown. It may be advisable to buy this cover as EV batteries can be expensive to repair as well as replace.* Note that most of these add-on covers are available only if you purchase a comprehensive policy and cannot be combined with a third-party liability cover. Moreover, not every cover may be available to you. Availability may differ from one insurance provider to another, as well as the overall health of your vehicle.*

5.    Claim Settlement Ratio

The claim settlement ratio is a measure of how often an insurance company pays out claims. A high claim settlement ratio means that the insurance company is more likely to pay out your claim. You can find the claim settlement ratio for an insurance company by looking at its financial statements.

6.    Insured Declared Value

The insured declared value (IDV) is the amount of money that the insurance company will pay out if your vehicle is totalled. The IDV is usually based on the market value of your vehicle. You can increase the IDV by paying a higher premium.*

7.    Post-sales service

The post-sales service is the level of support that the insurance company provides after you make a claim. Some insurance companies offer 24/7 customer service and a dedicated claims team. It is ideal to choose one that seems most accessible to you. Since they are a relatively new introduction in the market, there are not many challenges for electric vehicles in India at present. However, the same may not be true about the future. To avoid any such dire situations affecting you financially, the right insurance policy may help.   * 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.

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