Things to keep in mind when buying an EV insurance

By: See depicted Agarwal, co-founder and CEO, Insurance

Electric vehicles are now increasingly ubiquitous on our roads, especially as the central government seeks to turn India into a leading electric vehicle market by 2030. According to industry analysts, the popularity of e-vehicles is expanding and it will increase in the future as consumer knowledge increases and strict standards of pollution are applied.

Although e-cars are more expensive than ICE-cars, they have their own advantages For example, e-cars do not pollute the environment and do not make any noise. Most critically, they help save money on diesel and petrol. However, as car prices rise, so does the cost of maintaining an electric car.

Important Things to Remember When Buying an EV Insurance:

Before buying an insurance policy, consider the following:

  • Choose insurance according to car price: Experts suggest that before buying insurance, you need to determine the price of the car you are buying. Insurance should be provided based on the actual value of the vehicle. You should also check if the insurance you provide is appropriate, so that the portion of your claim payment is minimal in the event of an unfortunate event.
  • Some special features of e-car to keep in mind when buying insurance: Electric automobiles work differently than conventional vehicles. Consequently, before buying an insurance policy for an EV, consider these special disadvantages. Ordinary electric vehicles have a range of 160km to 241km before recharging their batteries. The charging time of most electric vehicles is between 5 and 10 hours. Experts recommend that batteries, power supply units, electronic and mechanical electrical failures should be covered by purchasing a suitable warranty product to compensate.
  • Add-on coverage: When buying insurance, keep an eye on the Insured Declared Price (IDV) i.e., the maximum guaranteed amount determined by the insurer and equal to the current price of the vehicle, the type of plan to be selected and the accessibility of the add-on option. You should look at your company’s records and history, cashless options and CSR (claim settlement ratio).
  • Zero depreciation add-on insurance: Because maintenance and purchase of these vehicles is expensive, zero depreciation add-on coverage is beneficial. The insurance company estimates the depreciation value of the car across a claim, which will subsequently be deducted from the amount of the claim. With the Zero Depreciation Add-on Cover you will be able to get the amount of the claim without deducting any depreciation made by the insurance company.
  • Separate add-on cover required for battery consumption: These EVs are made with state-of-the-art technology which means the use of skilled mechanics. Battery costs and special parts are quite high, so it is advisable to have a separate add-on cover. When an electric vehicle requires an add-on cover, add-ons, such as engine protectors, which are provided with full car insurance, may differ due to differences between battery-powered vehicles and regular fuel vehicles. Damage from battery leakage, battery charger, motor vehicle transport and on-site assistance should all be considered optional cover.

Get out

Although electric vehicles are more expensive than motor vehicles, they can be beneficial in the long run. Since EVs can be a one-time investment, people should consider buying insurance for a green car so that they can protect their car and themselves from financial loss that may occur due to an unfortunate incident involving the insured car.

Disclaimer: The views and opinions expressed in this article are those of the original author only. These views and opinions do not represent those of the Indian Express Group or its employees.

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