Electric vehicles, or EVs, are gaining immense popularity, and governments are providing subsidies and discounts. As EVs run on batteries, they do not produce smoke and contribute to the sustainability of the environment.
Therefore, responsible vehicle owners are switching to EVs from their fuel counterparts. However, buying an EV is not enough; you also need to insure it in accordance with the Motor Vehicles Act of 1988 to ensure legal compliance.
Keep reading to learn about the things to consider when buying insurance for an electric car, including its benefits, inclusions, and exclusions.
Top 6 Factors to Consider While Buying Insurance for an Electric Car
Before buying an insurance policy for your electric vehicle, don’t miss out on considering the following factors:
1. Price of the EV
The insurance costs for electric vehicles are higher than those for fuel and diesel vehicles, as EVs are generally more expensive than fuel-run cars. Therefore, when purchasing an insurance policy, you must carefully check all the terms and conditions.
2. Model and Type of the EV
The insurance premium for your EV depends on its model and type. For instance, if you own a luxury electric vehicle with high repair and replacement costs, the premium will be higher than that of the affordable models.
3. Age of the EV
As the depreciation rate of older vehicles is high, the IDV is low. Therefore, the insurance premium for older electric vehicles is low.
4. Safety Features of the EV
The more features your EV has, the lower its insurance premium. This is because vehicles with advanced features, such as lane assist systems, ADAS, and adaptive cruise control, ensure your EV’s safety. Thus, the accident risk of such vehicles is low, making the premium affordable.
5. Battery of the EV
The most crucial and valuable component of an EV is its battery. It is more expensive than the fuel for cars. If you buy an EV with a larger battery, you are likely to pay a higher insurance premium. This is because the replacement cost of larger batteries is high.
6. Additional Coverage
Purchasing add-ons with your EV insurance will increase the premium amount. You can extend your comprehensive insurance for electric cars by purchasing add-ons, such as additional battery coverage, roadside assistance, and camera and sensor protection, among others.
Why Should You Purchase Car Insurance for Electric Cars?
Here are some of the reasons why you should insure your electric car:
● Financial Security
A sudden accident can cause damage to your electric car and drain your money on repair work. However, insuring your vehicle will reduce your burden as you don’t have to bear out-of-pocket expenses. Your EV insurance will cover the repair cost.
● Extensive Coverage
The coverage of insurance for an electric car depends on the type of vehicle insurance you opt for. A third-party car insurance will only cover the third-party liabilities caused by your vehicle. However, for extensive coverage, you can purchase comprehensive EV insurance. It covers third-party liability and own damage, offering wide coverage.
● Flexibility of Customisation
Apart from a wide coverage, a comprehensive EV insurance policy allows you to customise the insurance coverage with add-ons. In exchange for a minimum extra amount with your monthly premium, you can avail of additional coverage per your specific needs.
● Online Availability
Car insurance for electric cars can be purchased online from the comfort of your home. You can buy the insurance, proceed with claim settlement, renewals, or any other queries simply by visiting the insurance provider’s website.
● Law Compliant
To comply with the law, every EV or fuel-driven vehicle must undergo third-party insurance. Any violation of this regulation will result in hefty penalties.
What are the Inclusions and Exclusions of EV Insurance?
Buying insurance for an electric car includes the following inclusions and exclusions:
Inclusions of EV Insurance
EV insurance offers a comprehensive safety net for electric vehicle owners by covering a wide range of potential risks. Here are the damages and losses that EV insurance covers:
● Natural Disasters
It protects against natural disasters like earthquakes, floods, tsunamis, and cyclones. If your EV is damaged or lost due to these uncontrollable events, the policy will compensate you for the losses.
● Man-made Disasters
The policy covers man-made disasters. If riots, strikes, or explosions damage your car, you are entitled to compensation.
● Accidental Damages
If your EV is involved in a road accident, the insurance covers the resulting repair costs or losses.
● Theft
If your electric car or parts are stolen, the insurance will provide financial compensation. Additionally, transit damages are covered, so if your vehicle is being transported and suffers damage en route, you can claim for the losses.
● Third-party Liabilities
If your EV causes injury or property damage to a third party, the insurance will handle the associated expenses, whether you have a third-party or comprehensive plan.
● Self-ignition
If your car spontaneously catches fire without any external cause or accident, the damage is included under a comprehensive policy.
Exclusions of EV Insurance
Despite the broad coverage, EV insurance does have notable exclusions. Here are some of them:
● Negligent Driving
Your claim will be denied if you damage your car while driving recklessly or participating in illegal racing. Similarly, if you are driving under the influence of alcohol or drugs, any resulting damage or loss will not be compensated.
● Driving without Proper Documentation
If you are driving without a valid license or active insurance, it voids your claim rights.
● Routine Maintenance
No insurance policy covers general wear and tear and routine maintenance, as these are part of regular vehicle ownership.
● Driving Outside Permitted Area
If you drive your EV outside the permitted geographical areas specified in your policy, you will not be covered for any damages incurred. This ensures that insurance is only valid within agreed-upon boundaries.
EV insurance provides robust protection against unforeseen events, but it’s essential to be aware of its limitations to avoid unexpected claim rejections. Knowing the inclusions, exclusions, and other factors will help you make informed decisions per your budget and driving needs.
