Best Insurance Plans For Your Electric Car

Top Insurance Plans For Your Electric Car

In the past few years, the automotive industry has witnessed a significant shift due to the increasing adoption of electric vehicles (EVs). As reported by BWAutoWorld, the electric vehicle market in India is expanding and will continue to grow by approximately 47% every year from 2022 to 2027.

As the world aims for greener and more eco-friendly ways of getting around, electric cars have taken the lead in this movement. But, with more people choosing electric cars, picking the right insurance is crucial to protect these silent yet powerful machines.

Therefore, this comprehensive guide aims to explore the realm of electric car insurance by shedding light on some of the top car insurance plans specifically tailored for electric cars. Not only this, but the guide also discusses the benefits of e-car insurance and various other important aspects.

Why Is It Important To Buy Electric Car Insurance?

Here are some of the most important reasons why you need appropriate car insurance for your electric car:

Mandated By Law:

As per the Motor Vehicle Act of 1988, it is a legal requirement in India to purchase car insurance, irrespective of its type. Therefore, having an electric car insurance policy ensures compliance with the law and keeps you on the right side of it.

If caught without valid insurance, you may face legal consequences such as fines, penalties, or even the suspension of your driving license. Additionally, authorities have the right to seize and impound your car in such cases. This can result in additional expenses for car release and further legal complications.

Protection Against Third-Party Liabilities:

If your insured e-car causes damage or injury to others or their property in an accident, the e-car insurance policy will cover the associated costs, such as medical expenses, rehabilitation costs, property repair or replacement costs, and more.

Apart from financial protection, the insurance also offers legal protection to the car owner. It reduces the burden of potential lawsuits by covering legal expenses and court fees, ensuring that you can defend your case adequately.

Specialized/Tailored Coverage:

Electric cars, with complex parts like high-voltage batteries and advanced electronics, need special insurance. Regular insurance might not cover the repair and replacement costs of these specialized components. Thus, electric car insurance offers tailored coverage to meet the specific needs of EVs, providing financial protection for these high-tech parts.

Specifically speaking, the battery is a crucial and expensive component of an electric car that may degrade over time or encounter issues, requiring repairs or replacements. E-car insurance often includes coverage for battery-related expenses, helping owners manage the significant costs associated with maintaining or replacing this essential component.

Addressing Range Anxiety:

‘Range anxiety’ is the worry that electric vehicle owners have about not having enough battery range to reach their destination or the next charging station. India’s vast geography and lack of EV charging stations make the problem even worse because the significant distances between the charging points can worry the e-car owners. 

Electric car insurance can play a role in addressing such anxieties. It may offer roadside assistance services that specifically cater to range-related issues. Some plans may also include coverage for alternative transportation in case of charging delays or unexpected breakdowns. All such supports ensure peace of mind and timely action in case of emergencies.

Discounts By Government:

The Ministry of Road Transport and Highways drafted a note in 2022 regarding the third-party premium rates of various classes of vehicles. As per the note, a 15% discount will be given on the third-party insurance premium for electric vehicles, including private cars and two-wheelers. 

The premium rates for private cars are mentioned in the table below and they are effective from 1st April 2022!

Car Type – Private CarsRates (1-Year Policy)Rates (3-Year Policy)
Not Exceeding 30 KWRs. 1,780Rs. 5,543
Exceeding 30 KW But Not Exceeding 65 KWRs. 2,904Rs. 9,044
Exceeding 65 KWRs. 6,712Rs. 20,907

List Of Top Electric Car Insurance In India

This section will briefly overview the top e-car insurance plans available in India.

1. Bajaj Allianz Electric Car Insurance:

The policy offers comprehensive coverage solutions specifically tailored for e-cars. It stands out for its 11 roadside assistance services, dedicated EV helpline with SOS, and more.

Key Features

  • Quick purchasing (less than 3 minutes)
  • On-site charging
  • Pick-and-drop facility
  • 7+ add-ons
  • Accommodation benefit

2. HDFC Ergo Electric Car Insurance:

It is known for its affordable premiums, easy cashless claims, and quick repair facility. The plan offers 3 types of electric car policies and they cover various financial responsibilities, including third-party liability, damages caused by natural and man-made calamities, accidental damage, explosions, fires, theft, and personal accident cover.

Key Features

  • Overnight vehicle repairs
  • Range of add-ons
  • Premium starts at Rs. 2094
  • Simple renewal process
  • Wide network of cashless garages

3. Digit Electric Car insurance:

Digit is known for its digital-first approach to insurance. The Digit e-car insurance provides a comprehensive range of protections for electric car owners, including coverage for third-party liability, damages from natural and man-made calamities, accidental damage, explosions, fires, and theft.

Key Features

  • Doorstep pickup and repair facility
  • Smartphone-enabled self-inspection
  • Super fast claims
  • 6000+ cashless network garages
  • Customize your vehicle IDV

4. Kotak Electric Car Insurance:

Kotak e-car policy goes that extra mile for your safety. Dedicated to ensuring customer satisfaction, the plan strives to offer a hassle-free and user-friendly experience, enabling policyholders to effortlessly handle their electric car insurance online.

Key Features

  • 5% discount on online purchasing
  • Jet-speed claim settlement
  • Instant policy with zero paperwork
  • 4200+ cashless garages
  • Up to 50% No Claim Bonus

5. Shriram Electric Car Insurance:

Shriram General recognizes the distinct insurance requirements of electric car owners. Its e-car policy provides thorough coverage and customized solutions for your e-car, guaranteeing a seamless and stress-free driving experience.

Key Features

  • Premiums start as low as Rs. 1572
  • 24 X 7 claim notifications
  • Extensive add-on options
  • Quick claim intimation process
  • Offers 3 types of e-car policy, namely Comprehensive Electric Car Insurance Policy, Third-Party Electric Car Insurance Policy, and Own Damage Cover for Electric Cars

Challenges Faced By Electric Car Insurers In India

Though there are many insurance providers for electric cars in India, they face some prominent challenges. They are as follows:

  • Covering Major Components In An Affordable Rate

Insuring electric cars, especially their important components like high-voltage batteries, is tricky because of their complex and constantly evolving technology. Thus, it becomes challenging for insurers to figure out risks and set prices for the plans.

Additionally, EV batteries usually lack guarantees from manufacturers, raising risks like fires, overheating, and water damage. Insuring e-car chargers and cables also adds to the complexity, making insurers cautious about providing comprehensive coverage for electric cars.

  • Lack Of Standardization

Insurance providers also face challenges due to the absence of standards in electric car batteries, components, and charging stations. The unique specifications of each electric car battery and other components make it hard to create a one-size-fits-all insurance policy. 

In addition, the varying charging speeds at EV stations, from slow to rapid, add complexity for owners in planning their charging routines. This also makes it challenging for insurers to predict and evaluate potential accidents or damages that may arise due to differences in charging speeds. 

  • Higher Cost Of Repair & Maintenance

The advanced tech in electric cars hikes up repair and maintenance costs, directly affecting insurance payouts. Currently, there is a shortage of skilled EV mechanics. This not only increases labor costs but also makes it hard for insurers to accurately estimate risks and prices linked with fixing these components. 

Moreover, we all know that standard norms and practices are absent. This challenge doesn’t allow the insurers to precisely estimate replacement costs and set insurance premiums accordingly.

  • Lack Of Infrastructure

India is struggling to keep up with the demand for EV charging stations. As of January 23, 2023, there were only 5,254 public EV charging stations for 20.65 lakhs EVs, meaning just one station for every 393 electric vehicles. This shortage affects how easily people can use and adopt EV vehicles. Thus, insurers must consider the influence on the market penetration of electric cars, which, in turn, affects the overall demand for electric car insurance. 

These numbers worry electric car owners about running out of battery power and could change how they drive, leading to more accidents or travel problems. This might increase the number of insurance claims, which may lead to further losses for the insurance company.

What To Consider Before Buying An Electric Car Insurance?

Some of the key considerations for buying an e-car policy are:

  • Compare & Contrast: Compare coverage, premiums, and services from different providers to find a well-balanced policy that fits your budget and offers comprehensive coverage for your electric car.
  • Read The Fine Print: Carefully read and understand the policy’s terms and conditions. By doing so, policyholders can avoid misunderstandings and surprises in the event of a claim.
  • Evaluate Add-Ons: It’s equally important to assess the additional covers as they often come with extra costs. By looking carefully at these additional protections, policyholders can make sure their electric car insurance is covering what they need.
  • Ensure Specialized Coverage: Electric cars have unique components that are highly different from traditional cars. Ensure that your plan provides specialized coverage for electric car components, such as high-voltage batteries, electric motors, power electronic modules, charging systems, and more. Also, ensure that the policy covers battery replacement costs because it is the key component of electric cars.
  • Check The Company’s Customer Support & Claim Process: Look for customer reviews on independent review platforms, forums, and social media. Additionally, seek out testimonials or case studies related to claims experiences. Remember that a positive experience with customer support and a smooth claims process is crucial for your peace of mind when dealing with unexpected events.
  • Assess The Garage Partnerships: Check if the insurance provider has partnerships with certified repair shops experienced in electric vehicle repairs. It is crucial for accurately diagnosing and effectively resolving issues related to electric motors, batteries, and other intricate components.

Frequently Asked Questions

Electric car insurance carries a higher cost compared to insurance for petrol or diesel cars due to the overall higher market value of electric cars, which directly impacts insurance premiums.

No, a Pollution Under Control (PUC) certificate is not required for driving an electric car as they do not emit pollution like traditional fuel-powered vehicles.

Premiums for electric car policy are calculated based on factors such as kilowatt capacity, make, model, and age of the vehicle.

No, if you intentionally neglected damages and then file a claim after some time, the insurer is likely to deny coverage, and you will be responsible for covering the repair costs.

While there are no specific add-ons exclusively for electric car insurance, common add-ons like Roadside Assistance, Return to Invoice Cover, and Zero Depreciation Cover can be applied to enhance coverage for electric cars.

The most suitable insurance type for electric cars is a comprehensive e-car insurance policy, offering extensive coverage and the ability to customize with additional add-ons.

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