Busting Common Myths About EV Insurance in India

Electric vehicles (EVs) are gaining ground across India— for all the right reasons. They are clean, quiet, and cost-effective. With ever-growing EV sales due to various government incentives, significant technological advancements, and rising environmental concerns, the Indian EV Market is projected to expand to US$113.99 billion by 2029, highlights the IBEF (Indian Brand Equity Foundation). While an increasing number of people are plugging into EVs, EV insurance remains clouded by doubts and half-truths. This article breaks down the common myths about EV insurance in India to help you choose the right coverage for your electric vehicle.

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9 Electric Vehicle Misconceptions You Should Know

Here are some of the most common myths about electric vehicle insurance in India that you should know before picking a policy:

Myth 1: EV Insurance is Expensive Than Regular Car Insurance

Electric vehicles come with a higher upfront price and a bit more tech under the bonnet. But that doesn't automatically mean sky-high insurance. Premiums aren't based on assumptions. Vehicle Insurers look at the vehicle's value, repair expenses, IDV, and how likely it is to be involved in a claim. So, in many cases, electric car insurance premiums aren't wildly different from those of petrol or diesel cars.

And here's a bonus,

Government incentives under the FAME II scheme and certain tax breaks also help lower the overall cost of owning and insuring an EV.

Myth 2: EVs Don't Need Comprehensive Insurance

It's a common assumption that just because EVs have fewer moving parts, they have fewer problems. It's a fair thought - EVs don't come with clutches, gearboxes, or exhaust pipes. But just because they are mechanically simpler doesn't mean they are invincible.

The risks like accidents, floods, fire, even falling trees are very real. And unlike conventional cars, EVs come with high-voltage batteries that cost a fortune to repair or replace. If your car is waterlogged after a heavy downpour, you're not just facing a cleanup but also staring at a hefty repair bill.

That is where comprehensive car insurance steps in. It goes beyond the basics, protecting you from natural disasters and human mishaps. So, if you are driving an EV, skipping this cover will not save you money. It's a risk you may not want to affordable later.

Myth 3: Zero Depreciation Cover Doesn't Apply to EVs

If you own an EV, adding a zero dep cover is one of the smartest choices you can make.

Electric vehicles rely on high-value parts, especially the battery, which can cost a significant amount to repair or replace. With a standard policy, depreciation is deducted from your claim, meaning you pay the difference from your pocket.

But when you opt for a zero depreciation add-on, your insurer covers the full cost of replaced parts, without factoring in depreciation, for EV owners, which can translate to significant savings during repairs.

Think of it this way: without this cover, you might receive only a fraction of the repair cost. With it, you get the full amount for the replacement of bumpers, plastics, or panels.

Myth 4: EV Battery is Always Covered

While many policies cover damages to the vehicle, EV batteries often require a special add-on, known as the battery cover, for complete protection. Hence, reading the fine print of the policy is critical since batteries can make up 30-40% of the car's cost.

Some insurers offer battery protection riders, while others might treat battery wear as a maintenance issue, excluding it from standard claims.

You must ask your insurer: "Is the battery covered for water damage, short circuits, or thermal runaway?"

Because a ₹6 lakh battery replacement bill isn't something you want to discover after the fact.

Myth 5: Roadside Assistance is Less Useful for EVs

The roadside assistance add-on in EV insurance is one of the smartest add-ons you can opt for.

Here's why you should consider getting this add-on.

Range anxiety is real. If you run out of charge mid-way or encounter charging station errors, roadside assistance can tow your vehicle to the nearest charging point or dealership.

This add-on also comes in handy during flat tyres, sudden breakdowns, or even key lockouts. These are the issues that not only apply to fuel cars but also to EVs.

So if you're buying electric car insurance online, ensure roadside support is included or added separately.

Myth 6: EV Insurance Claim Process is More Complicated

The car insurance process remains the same across all vehicles.

Whether it's an EV or a petrol/diesel vehicle, filing a claim involves submitting the necessary details, getting a surveyor assessment, and waiting for approval.

What differs is the availability of garages. Since repairing an electric car requires skilled technicians, not all garages have EV repair facilities. This makes it vital to check whether your insurer has a wide cashless garage network for EVs.

The good news? Insurers are expanding EV-specific repair garages in most urban areas.

Myth 7: EV Insurance Doesn't Offer Add-on Customisation

That's far from true.

EV owners can opt for add-ons in car insurance. Beyond zero depreciation and roadside assistance add-ons, you can also choose these useful covers:

• Electric Motor Protect Cover.
• Return to Invoice (RTI) Cover.
• Battery Protect.
• Key Replacement Cover.
• Consumables Cover.

EVs come with unique risks and expensive parts. Opting for add-ons can help minimise your out-of-pocket expenses if something goes wrong with your EV.

Always compare offerings. The best coverage is the one that suits your needs.

Myth 8: Buying EV Insurance Offline is Safer

Compared to offline modes, when you buy car insurance online for your EV, it is quicker, more transparent, and often cheaper.

Digital platforms allow you to compare quotes from multiple insurers, see add-on options, and download your policy instantly, all in real time. There's also less chance of human error or miscommunication.

Online is the way forward unless you need a specific, custom-built policy.

In most cases, it's also the fastest route to claim registration and renewal reminders.

Myth 9: You Can Skip Personal Accident Cover in EV Insurance

While buying or renewing electric car insurance, you cannot skip personal accident cover as it's mandatory.

All motor insurance policies must include a personal accident cover of at least ₹15 lakh for the owner-driver. This rule applies to EV insurance too.

Even if you already have life insurance, this cover provides a quick financial cushion in case of injury or fatality due to an accident involving your insured EV.

Skipping it is both illegal and unwise.

Summing it up,

Electric car insurance doesn't have to be complicated, but it requires clarity. Whether you buy your first EV or switch from a petrol/diesel car, it is crucial to dispel these myths to make better choices regarding your EV insurance options.

Here's your checklist before you buy:

• Choose a comprehensive electric car insurance policy, not third-party only.
• Select relevant add-on covers like zero depreciation, battery protection, and EV roadside assistance.
• Buy car insurance online to compare and customise coverage.
• Read the fine print, especially around battery coverage and claim limits.
• Pick insurers with EV-ready garage networks.