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Best Electric Vehicle insurance in India
Feb 26, 2023

How to Choose the Best Electric Vehicle insurance in India

The environmental impact due to climate change has become more evident. Not only does this impact affect our living conditions in the present, but they also affect future generations. Switching from a petrol or diesel car to an electric car is one of the solutions to combat the effects of climate change. However, if you are looking to purchase an electric vehicle, it is imperative that you also buy electric car insurance. Why should you purchase it? How can you select the correct type of policy? Here is more information related to that.

What are electric vehicles?

Electric vehicles are vehicles which are powered completely or partially by electricity. The energy is stored in the form of electric current in batteries. These batteries help power the car. For conventional fuel-operated vehicles, fossil fuels such as petrol or diesel are used to power the car. The combustion process that takes place in the engine produces greenhouse gases, which leads to higher emissions and increased pollution. In an electric vehicle, however, there are no emissions from an electric vehicle. This means lower pollution. Also due to the nature of the electric vehicle, there is reduced noise pollution. On the other hand, ICE vehicles generate a lot of noise further contributing to noise pollution.

Why insurance is important?

Just like a petrol or diesel car, an electric car is a substantial investment. Considering the type of vehicle and the technology used, electric cars are relatively expensive. Due to the rising number of cars on Indian roads, there is an increased risk of your car getting damaged in an accident. While you may get to enjoy the benefit of subsidy available under the electric vehicle policy of India, you should not ignore the safety of your vehicle. You can ensure this by opting for an electric vehicle insurance policy. Along with compensation for the repair cost, you get financial assistance for works related to internal parts and other damages as well. *

How to select the correct policy?

If you are looking to purchase insurance for EV cars, here are some of the factors you can consider:
  1. Opt for a comprehensive policy

As mentioned earlier, the cost of an electric car is high when compared to a petrol or diesel-run car. If your car gets damaged in an accident, you would be required to shoulder out-of-pocket expenses to get the car repaired. This can set you back financially. Even if you owned third-party insurance, the same would happen as it covers only third-party damages. However, comprehensive insurance covers own damages as well as third-party damages, which can be beneficial. *
  1. Consider the benefits of add-ons

When you go for a comprehensive policy, you also avail the benefit of add-ons. These are features that enhance the coverage of your policy. Add-ons such as zero-depreciation cover, no-claim bonus protection, roadside assistance, and fuel refill can be added to your policy. However, do remember these add-ons are optional and thus, increase the overall cost of your policy. Include only those add-ons only which you might find useful to have broad coverage while keeping your premium in check.
  1. Compare what insurers are offering you

It is recommended to compare products being offered by different insurers and their features. The coverage, add-ons and additional features in the policy can help you make an informed decision. Pricing is also a deciding factor which you can take into account. Going with an insurer that ticks all your boxes can benefit you in getting the most out of their policy.
  1. Set the correct IDV

When you purchase insurance for your new electric car, the insured declared value (IDV) of your car will be as per that model’s present market value. Since IDV has a direct impact on the insurance premium, many buyers tend to set a low IDV to reduce the premium. While it may be beneficial in the short run, it can backfire when you raise a claim for total loss or theft as the compensation offered will be low. Thus, you must set the correct IDV for your vehicle.


These factors can help you choose a suitable policy for you. You can always get in touch with your insurance advisor to know more about the cost of electric car insurance and how you can get avail of concessions.   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. *Standard T&C apply  

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