Things to Know Before Buying Electric Car Insurance

Planning to buy an electric car? Before you do it, you may have to look for its insurance options too. As Electric Vehicles (EVs) become increasingly popular in India, the demand for EV-specific insurance policies is also on the rise. But unlike petrol or diesel vehicles, purchasing EV insurance requires some special considerations. Let's understand the importance of EV insurance and know how you can get optimal coverage at the right price.

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EV Insurance and its Importance

Electric car insurance provides essential protection to EV owners by covering damages to their EV's battery, charging equipment, and expensive repair of EV components. Structurally, EV insurance is like the insurance for conventional fuel-based vehicles. There are three categories of coverage options:

• Third Party (TP) Insurance: As per motor laws in India, third-party insurance is compulsory for your EV in order for it to ply on roads legally. It takes care of third-party liabilities like death, injury, & damage to their property.
• Own Damage (OD) Insurance: Covers damages or loss of own vehicle due to road accidents, theft, fire, or natural disasters.
• Comprehensive Insurance: Also referred to as a bundled policy, it covers both own damages as well as third-party liabilities.

Have a look at the key reasons highlighting the significance of electric car insurance:

• Financial Security: Electric car insurance financially protects you against any damages or losses to your EV in the event of an accident, natural disaster, theft, fire, etc.
• Legal Protection: Since a car insurance policy is mandatory as per the Indian Motor Vehicles Act, EV insurance helps you abide by the law and avoid hefty penalties.
• Drive with Peace: EV insurance provides you with peace of mind by keeping you worry-free about unexpected expenses that may arise due to a road accident.

8 Tips to Select the Right EV Car Insurance

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

1. 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.

2. Opt for Battery & Charging Equipment Covers

   Since the battery of the EV is the most expensive and crucial component, its replacement cost is significant. Hence, it is a great idea to opt for the Battery Protection add-on that covers losses or damages to the EV battery as well as the charging equipment.

3. Avail Government Incentives

   The government of India, under the FAME II scheme, is offering various incentives to EV buyers. As a part of this push, several insurers have started offering EV insurance for lower premiums so you can avail of discounts or special packages.

4. Choose Essential Add-Ons

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

   • Zero Depreciation Cover: Allows for a complete claim amount without including the EV depreciation cost.
   • Motor Protection Add-on: Covers damages or losses to the electric motor in case of water ingress.
   • Roadside Assistance: Offers emergency services in case of a breakdown, such as towing, battery charging, flat tire repair, etc.

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.

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.