Things to Know Before Buying Electric Car Insurance

Unlike petrol or diesel vehicles, purchasing electric car insurance requires some special considerations, especially regarding the battery and charging equipment. Electric Vehicles (EVs) have expensive batteries, electrical components, and a charger that may need specific coverage. So, before buying EV insurance, it is important to understand what it covers, what it excludes, and which add-ons may be useful.Read more

How is Electric Car Insurance Different from a Standard Policy?

In addition to standard coverage, electric car insurance also covers EV-specific components and risks. Here are the differences:

8 Things to Keep in Mind Before Buying Electric Car Insurance

Secure your electric car with the ideal EV insurance policy by following these helpful tips:

1. Battery and Charging Equipment Protection

   Before buying electric car insurance, the most important fact to know is that your standard policy does not automatically cover your EV's battery or charger against internal failures or short circuits. Since the EV battery pack accounts for 40% to 60% of its total value, replacing it out of pocket can cost lakhs of rupees.

   Hence, to avoid major financial risks and ensure complete peace of mind, you must opt for the battery protection cover along with the charging equipment add-on with your EV insurance. This will financially protect you against losses to your EV's battery or charging infrastructure from water regression (floods), internal short circuits, and leakage.

2. Electric Motor & Sensor Protection

   EVs rely heavily on complex electric powertrains, advanced driver assistance systems (ADAS), cameras, and radar sensors. These items are very expensive to replace and thus need special coverage through covers like the electric motor protection.

3. Consider Premium Costs

   Insurers decide the electric car insurance premiums based on several factors, such as the price of the EV, battery type & capacity, model & variant, area of vehicle registration, and the add-ons chosen. In some scenarios, EV insurance premiums may be slightly higher as replacing EV parts, especially the battery, is expensive.

4. Choose Essential Add-Ons

   Besides the crucial battery protection and charging equipment covers, there are other useful EV-specific add-ons that you may consider opting for:

   • Zero Depreciation Cover: Allows for a complete claim amount (except the compulsory deductible) without including the EV depreciation cost.
   • EV-specific Roadside Assistance: If your EV runs out of charge in an area without public infrastructure, the EV-specific RSA add-on will cover towing your vehicle safely to the nearest EV charging station or provide a roadside emergency charging facility. .

5. Review Network Garages

   Not all car insurance companies have a wide network of EV-exclusive service centers. Hence, before purchasing a policy, check the insurer's garage network and if they have skilled & experienced EV mechanics. Also, prefer insurers that offer the cashless claim facility to save on your out-of-pocket expenses.

6. Compare Plans Before Buying

   Always compare EV insurance policies offered by different insurers. There are various insurance websites like Policybazaar.com, which allows for online car insurance comparison. Doing this can help you know policy features, benefits, & premium prices.

7. Review Insurer's Reputation & Support Services

   Prior to purchasing a policy, check customer feedback or ratings of the insurer and choose the one that offers online claim filing options and 24x7 customer support.

8. Check Policy Exclusions

   Like any policy, EV insurance also has exclusions, where the insurer will not pay the claim. Some common ones are normal wear and tear, mechanical or electrical breakdown, driving without a valid licence, drunk driving, and damage caused while driving your EV outside the geographical area as mentioned in policy terms. Hence, always carefully go through your policy terms and conditions to know the specific exclusions rather than relying only on the coverage summary.

In a Nutshell

Choosing an ideal car insurance policy is as critical as the decision to buy an EV itself. To get the optimal coverage, take good time to research the insurance provider, compare multiple plans, and then opt for the one that fits your coverage requirements and budget. Note that the right EV insurance policy not only provides peace of mind while driving but also helps avoid unforeseen expenses.