Electric Car Insurance Cost, Benefits, Coverage

Electric Car Insurance India

Electric cars and bikes have improved commuting experiences for Indians. With benefits like quiet driving, pollution-free commuting, and additional savings from reduced gas and diesel consumption, it’s no wonder they’re fast becoming the new modes of transportation. However, the advantages come with additional costs for the vehicle owner. For example, since these vehicles are built using advanced technology, their repair also requires the hiring of specialists and an increase in repair costs in the event of damage. Similarly, these car or bike batteries and other specialized parts are expensive, implying high replacement costs. In this case, car insurance can prevent you from burning a hole in your pocket in the event of damage or depreciation. So this post discusses all Electric Car Insurance India.

Electric Car Insurance India

In recent years, electric cars have been making waves around the world, and with good reason. With climate change on the horizon, switching to an electric car is the best decision you can make for yourself and future generations. They reduce harmful air pollution. and greenhouse gas emissions and some parts of these cars are made from eco-friendly or recycled materials, reducing the impact on the planet.

According to a report by NITI Aayog, India could save 64% of energy demand for road transport and 37% of CO2 emissions by 2030 if it implements a common, electric, and connected mobility policy.

While the push for the next electric cars in India is just getting underway, it has a bright future as the government is taking some encouraging steps to encourage the movement. For example, the GST for a Li-ion electric car battery has been reduced by 28%. to 18% to promote electric vehicles.

The insurance regulator IRDAI has presented a mandate to incentivize electric car owners and promote a sustainable environment. As of June 16, 2019, motor liability insurance for private electric cars in India is 15% lower than general private. cars of a similar type. Certain state governments have expanded tax incentives for registering hybrid and electric cars in India.

Many leading vehicle manufacturers have launched electric cars in India. From Mahindra to Tata and Hyundai to MG, the options are constantly growing. Nissan, Porsche, Maruti, Audi, Tesla, etc. In fact, 21 new electric cars are expected to be launched in India in 202021. The cheapest currently is the Mahindra e2oPlus electric car, priced at 7.46 rupees. 

At the other end of the spectrum is the Hyundai Kona Electric, priced at around Rs 24. When it comes to budget electric cars in India, you’ll find the Tata Electric Tigor car (around Rs 11,000) and Tata Nexon (around Rs 15,000) in the mix. However, as the leading brand in India, the Maruti WagonR Electric and the electric car FuturoE are among the most anticipated models.

As of now, there is no special insurance for vehicles, so you must take out the same insurance as for other petrol or diesel vehicles. However, this will soon change. With the increasing demand for the upcoming electric cars in India, auto insurance providers are developing bespoke insurance options mainly targeting these variants.

For example, Tata AIG is planning to soon launch the comprehensive Auto Secure e Vehicle Policy designed for electric cars, as it aims to cover “own damage” and damage caused if the electric car’s battery explodes while driving is loaded. It also covers standard liability for property damage and death or personal injury.

Customers also have the option to purchase auto insurance with or without battery coverage. This is probably because an electric car battery accounts for about 40-60% of the vehicle cost, which is due to the high cost of the electric Liion car battery.

Electric Car Insurance India

Benefits of having an EV Insurance

Regardless of your electric vehicle choice, it is important that you get automotive insurance or two-wheeler insurance for the following reasons:

  1. Legal mandate: The Motor Vehicle Act regulates the laws relating to motorized vehicles in the country. All vehicles have car insurance in order to be allowed to drive legally on public roads. If you don’t do this, the traffic police can punish you with large fines.
  2. Civil liability: The roads are unpredictable and this can lead to a collision or an accident. In the event of accidental damage involving other drivers, pedestrians, or property, you must pay for any injury or damage out of your own pocket. However, with liability insurance, you don’t have to worry about financial or legal liability.
  3. Damage protection: In the event of an accident, your car could also be damaged. Anyone who has experience repairing cars knows that they don’t come cheap, especially electric vehicles. If damage to your car is due to your fault or someone else’s fault, auto insurance will take care of the repair.
  4. Accident Insurance: Auto insurance companies also provide accident insurance for the insured. This component comes into play when the insured dies or suffers permanent damage after an accident. Policyholders receive the sum insured, which may offer some financial help to the family. 

Points To Remember

While insurance coverage is the same for all vehicle types, there are some key factors to consider when choosing an insurance option for your electric vehicle. Some of them are mentioned below.

  1. IDV or Insured Declared Value: IDV refers to the maximum claim value that an insurance provider is willing to pay if a vehicle is damaged or stolen and cannot be repaired. also, be big. Consequently, the IDV must be sufficient to cover the loss in the event of theft or damage.
  2. Additional Benefits: When looking for additional coverage under electric vehicle insurance, consider the cost. Some of the costs associated with electric vehicles include damage from charging the battery, leaking car batteries, damage to the charging plug, having the vehicle towed to the nearest charging station, etc.
  3. Cashless Facility: Applying becomes easier when the plan includes a cashless facility that allows for instant repairs at partner stores if you get stuck in the middle due to a vehicle breakdown.

Simply put, electric vehicles, whether cars or bicycles, are still in their infancy in India and it will take a while before they are as popular as their petrol or diesel counterparts. But it doesn’t matter which vehicle you choose, you or the fuel. or operability, secure yourself with the best Electric Car Insurance in India. A few clicks are enough to insure your vehicle today 

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This is Khemu from India, who passionately love to read & write about EVs, which are going to replace fossil fuels vehicles.