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Electric Vehicle Insurance Premiums
Nov 18, 2023

How the Insurance Premiums of Electric Vehicles Differ from Conventional Vehicles

Introduction

Electric vehicles (EVs) are a hot topic in the automobile industry for the revolution they bring in to replace the conventional fuel-operated vehicles. They are a game-changer for the automobile industry worldwide. The entire world looks up to EVs to combat the primary concern of internal combustion engines, which is the exhaust fumes. But other than being a cleaner means to run vehicles, they have also managed to integrate technology in the process aiding the driver’s skills. As more consumers embrace the trend of going green, there's a rising curiosity about the various aspects associated with electric vehicle ownership. One such aspect is electric vehicle insurance. More specifically, how does the insurance premium of an EV compare to that of a conventional petrol or diesel vehicle? Let's dive into the details and explore this question in-depth.

Why Do You Need Electric Vehicle Insurance?

An electric vehicle represents a considerable investment, and with it comes unique risks, distinct from those associated with traditional combustion engine vehicles or popularly referred as internal combustion engines (ICE). Electric vehicle insurance plans are tailored to cater to these specific considerations. Key components of EVs, like batteries and electric motors, can be significantly expensive to repair or replace. Moreover, there aren’t enough trained professionals who can fix your EV. Thus, taking it to an authorised service garage is the next best option. For these reasons, a specialised EV insurance policy acts as a financial buffer against unforeseen expenditures, offering comprehensive coverage that includes potential liabilities, damages, and theft.

Is It Mandatory To Have Electric Vehicle Insurance?

Yes, much like their petrol or diesel counterparts, it is a legal requirement to have at least a third-party insurance coverage for all electric vehicles. This base level is known as third-party insurance, designed to cover any liability for injuries to others and damage to third-party property. However, third-party insurance plans do not cover costs associated with your own vehicle. Therefore, to enjoy a broader spectrum of protection, you might want to consider comprehensive electric vehicle insurance, which also safeguards against damages to your vehicle. While the regulatory requirement specifies third-party plans as mandatory, a comprehensive insurance coverage with suitable add-ons acts a safety-net for optimal protection of your vehicle. Claims are subject to terms and conditions set forth under motor insurance policy.

Does The Type Of Engine Impact Your Premium?

Indeed, the engine type plays a vital role in determining insurance premiums. The comparison of an electric car vs petrol car in India on the basis of their respective insurance policies will show a distinctive difference in insurance premiums, largely due to the higher value and specialised nature of EVs. The higher cost of EVs increases the Insured Declared Value (IDV), directly affecting the insurance premium. Moreover, the specialised services and parts required for EVs' repair and maintenance present a higher risk for insurers and this is reflected by way of increased premiums.

Is It Expensive To Insure Your EVs?

While the initial impression may be that EV insurance premiums are higher than those for conventional cars, the comprehensive perspective paints a different picture. The benefits of buying electric cars in India offset the seemingly high insurance premium. Due to absence of moving parts otherwise found in ICE vehicles, EVs have low running and maintenance costs. In addition, EVs enjoy FAME subsidies as part of government incentives to promote its adoption under the electric vehicle policy. These factors, on an overall basis, significantly reduce the overall ownership cost, making EVs a more economical choice in the long term.

How To Ensure Maximum Protection For Your EV Using Electric Vehicle Insurance?

Securing your EV investment involves more than just meeting legal requirements. It's about comprehensively protecting your investment in a rapidly evolving technology. This is where comprehensive electric vehicle insurance comes into play. Such policies not only cover third-party liabilities but also include protection against damages to your vehicle resulting from accidents, natural calamities, theft, and more. In addition, comprehensive plans allow you to customise your insurance coverage with the help of add-ons. These add-ons are optional policy covers that are available when you buy a comprehensive insurance policy. Claims are subject to terms and conditions set forth under motor insurance policy. * With a proven track record in the insurance sector, Bajaj Allianz General Insurance Company offers comprehensive EV insurance plans designed to cater to the specific needs of electric vehicle owners. By offering an extensive network of cashless garages and 24X7 roadside assistance, Bajaj Allianz assures a worry-free and secure EV driving experience. Claims are subject to terms and conditions set forth under motor insurance policy. * In conclusion, while the insurance premium for electric vehicles may initially seem higher than conventional vehicles, when viewed in light of the overall benefits and cost-effectiveness of owning an EV, the scales undoubtedly tip in their favour. Opting for an EV and insuring it with a comprehensive plan from a reputed provider like Bajaj Allianz is not just a smart financial decision, but a step towards a sustainable future   * 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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