Electric vehicles (EVs) are rapidly gaining traction in India, with a significant rise in their sales over recent years. As more consumers opt for electric cars, understanding electric car insurance becomes essential. Electric cars, while environmentally friendly and cost-effective in the long run, come with unique insurance requirements and considerations.
Let’s explore everything you need to know about car insurance for electric cars.
What is Electric Car Insurance?
A car insurance policy for an EV is a legal contract between the insurer and the electric car owner, designed to offer financial protection against any unforeseen incidents leading to damage or loss of the vehicle. The primary focus of car insurance for electric cars is on critical components, such as the battery, electric motor, and charging setup.
Types of Electric Car Insurance
In India, there are generally two types of insurance policies:
1. Third-Party Car Insurance
The Motor Vehicles Act of 1988 mandates that third-party car insurance is compulsory for all vehicle owners. It covers liabilities arising from damage or injury caused to a third party by the insured vehicle. However, it offers no protection against damage to the insured vehicle.
2. Comprehensive Car Insurance Policy
This policy offers extensive coverage, including third-party liability, personal accident cover for the owner-driver, and own damage (OD) cover. It protects the vehicle against damages resulting from accidents, natural calamities, theft, fire, and man-made disasters like riots and vandalism.
Why Electric Car Insurance Costs More
Insuring an electric vehicle costs more than insuring a conventional fuel-powered car due to:
- Higher Insured Declared Value (IDV)
Electric cars are generally more expensive than petrol or diesel cars, leading to higher IDV and higher insurance premiums.
- Specialised Components
EV insurance focuses on expensive components such as batteries and electric motors. The higher replacement and repair costs for these parts contribute to increased premiums.
- Additional Coverages
Electric vehicle insurance often includes extra coverage for charging equipment, battery warranties, and protection against environmental hazards, which adds to the overall cost.
Benefits of Comprehensive Electric Car Insurance
Opting for a comprehensive EV insurance policy provides several advantages:
- Financial Security: In the event of an accident or damage to your electric vehicle, the insurance provider covers the repair or replacement costs, providing financial security.
- Safeguard against Third-Party Liabilities: The policy covers costs due to damage or injury caused to a third party. This is a legal requirement and helps you avoid penalties.
- Protection against Hefty Repair Bills: Comprehensive insurance’s OD cover takes care of significant repair expenses, ensuring the owner doesn’t have to bear these costs out of pocket.
- Personal Accident Cover: This add-on provides financial compensation for injuries, disabilities, or accidental death of the owner-driver.
- Coverage for Natural and Man-Made Calamities: The comprehensive electric car insurance covers damages from natural disasters (floods, earthquakes, etc.) and man-made incidents (riots, vandalism, etc.).
- Peace of Mind: Knowing that your electric vehicle is protected against unforeseen events can provide significant peace of mind.
Premium Determination for Third-Party Car Insurance
The Insurance Regulatory and Development Authority of India (IRDAI) sets the third-party car insurance premiums.
For the fiscal year 2022-23, IRDAI proposed a 15% discount on premiums for electric cars and a 7.5% reduction for hybrid vehicles.
Currently, the suggested base premium rates for private electric cars vary depending on the vehicle’s power:
- Up to 30 KW: Rs 1,780
- 30 KW to 65 KW: Rs 2,904
- Above 65 KW: Rs 6,712
These rates reflect regulatory efforts to provide fair and appropriate coverage for electric vehicles.
Essential Considerations for Electric Car Insurance
When purchasing car insurance for EVs, there are several factors to consider:
- Battery Protection: Look for policies that offer extended warranty and coverage for consequential losses and damage caused by water.
- Charging Equipment Coverage: Ensure the policy protects self-owned charging stations and accessories.
- Engine Protection: Check for coverage against electrical system failures, wiring damage, and motor burnout costs.
- Sensor and Camera Protection: Given the reliance on sensors and cameras in EVs, coverage against damage to these sensitive components is essential.
Is a pollution certificate required for driving an electric vehicle?
Electric cars do not require a Pollution Under Control (PUC) certificate.
Since electric vehicles don't produce harmful emissions, they don't need to undergo the emission test required to obtain a PUC certificate.
Buying Car Insurance Online
Purchasing car insurance online for EVs offers several benefits, including ease of comparison and convenience. Whether opting for a comprehensive or basic third-party car insurance plan, ensure your EV is adequately protected.
With specialised policies and add-ons now available, EV owners can enjoy enhanced coverage tailored to their unique needs. Consider factors such as battery protection, charging equipment coverage, and sensor and camera protection to make well-informed decisions regarding car insurance for EVs.
Protect your electric vehicle with Generali Central Car Insurance. Get a quote now and experience hassle-free coverage.
