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Factors to Keep in Mind While Purchasing EV Insurance
Oct 1, 2022

Factors To Consider When Buying EV Insurance

Climate change and soaring fuel costs around the world has led to more people looking for alternatives to fossil fuel. In this narrative, battery technology is leading the forefront by helping companies around the world tackle these pressing issues. Thus, in the last few years, many automobile companies have begun introducing electric vehicles (EVs) in India. The electric market in India is expected to grow at a CAGR of 47.09% during the period 2022-2027 as per a report by Mordor Intelligence. To promote this growth, the government under the national electric vehicle policy India launched the FAME (Faster Adoption and Manufacturing of Electric and Hybrid Vehicles in India) Scheme. This scheme framed under the EV policy India provides an incentive to buyers of electric automobiles based on their battery capacity. Just like insurance is mandatory for all internal combustion engine (ICE) vehicles, it is similar for electric vehicles too. Thus, if you are planning to buy an electric vehicle, make sure to purchase a car or bike insurance policy in compliance with the law. The Motor Vehicles Act of 1988 requires all vehicles registered in India to at least have third-party insurance coverage. A third-party plan covers the legal liabilities that an insured is required to pay in the event of an accident injuring a third person or causing damage to their property. Since these plans have limited coverage, the car/bike insurance price for these plans is low. On the other hand, comprehensive plans have much broader coverage for repairs that may be required for your vehicle and hence, are priced steeper. Here are some of the factors you must consider when purchasing an insurance cover for your electric vehicle:
  • Buying According to the Price of the Electric Vehicle

Insurance experts recommend buying a bike or car insurance policy based on the price of the vehicle. Depending on the cost of the vehicle, the repair costs will be accordingly priced. Hence, choosing a policy that has the right insured declared value (IDV) will ensure adequate compensation will be paid in the event of an accident beyond repairs. *
  • Considering the Special Features of Your Electric Vehicle When Buying

As compared to conventional ICE vehicles, electric vehicles work differently. Therefore, before buying any two-wheeler or four wheeler insurance policy, you must check if the policy covers these spares. The most common coverage for an EV is battery repairs or replacement. Being an integral part of the vehicle, any repairs to the battery can burn a hole in your wallet and should be checked for when buying an electric vehicle. *
  • Add-on Covers

When you purchase a comprehensive insurance plan for your EV, the policy offers several optional features known as add-on covers. These features are available for a policyholder depending on their requirement. Since they are optional, they impact the overall premium amount. To decide which add-ons to choose, you can make use of a two wheeler insurance premium calculator which is a free tool offered by most insurance companies. Add-ons help in enhancing your policy’s coverage significantly. Thus, it helps to include coverage for events that are otherwise specifically excluded from the insurance policy’s scope. * *Standard T&C Apply To conclude, you mustn't skip buying new car insurance coverage, and ensure it is renewed consistently to take advantage of renewal benefits like the no-claim bonus.   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.      

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