Essential Add-ons to Enhance Your Electric Car Insurance Coverage

Electric Vehicles (EVs) come with advanced batteries and sophisticated electronics that make them different from traditional cars and much more expensive to repair. While comprehensive electric car insurance covers several risks, some EV-specific components still fall outside the scope of standard coverage. Hence, to avoid massive out-of-pocket expenses, it is crucial to select the right add-ons when buying a policy. Here are the essential electric car insurance add-ons you should opt for to ensure complete protection for your EV.Read more

Top Electric Car Insurance Add-ons to Consider

Choosing add-on covers with electric car insurance involves paying an additional premium. However, given the expensive EV repairs, it is worth having them to ensure complete protection. Have a look at the most useful add-ons for your EV:

1. Battery Protection Cover

   The lithium-ion battery is one of the most expensive components of an electric car. It comprises nearly 40% to 50% of the EV's total cost. While a standard policy covers basic accidental damage, it applies heavy depreciation and excludes consequential losses like damage from driving through flooded roads (water ingress) or voltage surges during charging. The battery protect cover included in your EV insurance policy can ensure that your EV's battery is replaced without any depreciation deduction. It covers a wider range of electrical and water-related damages.

2. EV Charging Equipment Cover

   Charging equipment is essential to your EV but is highly vulnerable to theft, voltage spikes, and even animal damage (like rats chewing through wires). Standard car insurance often does not cover the loss of these external accessories. An EV charger add-on (sometimes bundled under the 'EV Shield') specifically protects your portable charger, charging cables, and even the wall-mounted electrical panel at your home against accidental damage, fire, theft, and animal attacks.

3. Electric Motor Protection

   A standard policy excludes electrical or mechanical breakdowns that are not caused by a direct accident. However, the electric motor add-on with your EV insurance can help cover the costly repair or replacement of your EV's electric motor if it gets damaged due to water ingress, power surges, or internal short circuits.

4. Zero Depreciation Cover

   Imagine your electric vehicle has an accident, and it requires a replacement headlight or even a more comprehensive part. Under a standard EV policy, your insurer will include depreciation - the loss of value due to age - so you will not get the total price of the replacement.
   However, the Zero Depreciation add-on will ensure you get reimbursed for the full cost of part replacement in a claim without deducting depreciation. This is very helpful for EVs whose components tend to have relatively higher costs, so you won't have to pay out of your pocket at all.

5. EV Roadside Assistance

   Car breakdowns can happen to anyone, but EV breakdowns require specialised help. If you run out of charge or experience a software fault in the middle of a trip, standard towing isn't enough. An EV-specific roadside assistance add-on includes emergency battery charging via portable chargers, flatbed towing to the nearest compatible charging station, and assistance with EV-specific electrical faults anywhere, anytime.

6. Return to Invoice Cover

   If your EV is stolen or suffers total loss (damage beyond repair), your insurance provider will normally pay out the Insured Declared Value (IDV), i.e., the current market value of your EV after depreciation, which is much less than you actually paid for it.
   The Return to Invoice (RTI) or Invoice Protection cover fills this gap. It guarantees you will get the original invoice price of your EV (with registration fees and tax included), reduced by any deductible amount.

7. Consumables Cover

   Although EVs have fewer components than ICE vehicles, they utilise some consumables such as lubricants, coolants for battery thermal management, and even nuts, bolts, and screws which may have to be replaced in the event of an accident. The consumables add-on covers these ostensibly minor but very essential costs after the collision, thereby saving your out of pocket expenses.

8. NCB (No Claim Bonus) Protection

   Driving safely and claim-free gets you a No Claim Bonus (NCB), which is a discount on your car insurance renewal premium. While the NCB increases with every claim-free year, one claim will set your NCB to zero. However, with the NCB Protection add-on, you can retain your NCB even after making a claim during the policy tenure, helping you save on your subsequent premiums.

How to Buy the Right EV Insurance?

You can purchase electric car insurance online either directly from an insurer or via an insurance aggregator like Policybazaar. Simply enter your EV registration details, compare multiple policies, and select the necessary add-ons, and get the right protection for your EV.

Tips for Smart EV Maintenance

While having the right electric car insurance is important, preventive care can help noticeably increase the lifespan and functionality of your EV. Here are some tips you can follow to ensure your EV's longevity & performance:

• Regular Check-ups: Follow the service schedule suggested by the manufacturer. Although there are fewer moving parts in an EV, routine checks of the battery, electric components, brakes, and tires are very important.
• Appropriate Charging Equipment: It is always best to use chargers and cables provided by the manufacturer's specifications to ensure your battery is charged safely and healthily.
• Monitoring Battery Health: Constantly monitor the range of your EV's battery and charging duration. If you experience any serious degradation, visit the authorised service center.
• Safe Driving Behaviour: Smooth acceleration and braking can help you save battery power and prevent wear & tear from occurring to your EV components.
• Avoid Extreme Temperatures: Even with the thermal management capabilities of contemporary EV batteries, try keeping away from extreme temperatures for prolonged periods, as they will affect the battery's performance & life.

In Conclusion

As EVs become increasingly popular, understanding the importance of having the right electric car insurance is crucial. By comprehending the specificities of your EV, selecting the appropriate add-ons, and timely service & maintenance, you can ensure a trouble-free EV experience and its longevity.