Electric car insurance is comparable to that for internal combustion engine (ICE) automobiles. However, it comes at a higher cost. Electric cars have a higher buying price compared to ones that are powered by gasoline or diesel. The cost of repairing or replacing their components is significantly higher than average. As a result, you might be requested to pay a slightly higher premium each year for the renewal of your insurance coverage for your electric vehicle.
Your vehicle can be protected financially against potential liabilities such as theft, accidental damage, fire, riots, natural disasters, and injuries or property damage sustained by a third party that is covered by the electric vehicle car insurance policy. Choosing the appropriate protection for your electric vehicle can help avoid unnecessary out-of-pocket expenses.
Why is insurance for electric vehicles so expensive?
The purchase price of an electric car is significantly higher when compared to that of a conventional or fuel-powered vehicle. Consequently, their Insured Declared Value (IDV) is quite large. As the IDV climbs higher, electric vehicle insurance premiums may also get higher. Electric cars may have a higher entry price, but their lower operating costs make them a wiser financial investment over time. *
The power output of the vehicle can also affect the insurance premium in several ways. A more considerable premium would be expected to be paid for an electric car with a higher power output compared to a vehicle with a lower result. In addition, the price of the premiums can be altered by adding other components and extras.
When purchasing electric vehicle insurance, things to consider:
Be sure to have a decent, declared value for your insured property (IDV)
IDV stands for “insured declared value,” and various insurance companies may provide you with a number representing the maximum money you can get in the event your vehicle is damaged or stolen. You have no choice but to use the maximum IDV to keep money from coming out of your pocket in the event of an accident. *
Advice: Using an online car insurance calculator to find affordable premiums based on your needs can be beneficial.
Choose an all-encompassing strategy:
You must completely comprehend the type of protection you may be acquiring as a consumer. All-inclusive insurance policies pay for the resulting damages and the legal fees associated with them. As a person who owns a vehicle, it is your job to ensure that you have this so that it can be easier for you to secure an appropriate level of protection for your electric vehicle.
When available, purchase additional items:
The insurance add-ons cover additional aspects of the cars and their components. When it comes to electric vehicles, there are a variety of add-ons that can protect you, such as home chargers, portable chargers, roadside support, and other goods.
The verdict is that more people can become aware of the benefits electric vehicles offer in daily life, increasing the popularity of electric cars. The promotion of the use of electric vehicle technology is becoming an increasingly important focus for brands. In addition, prospective buyers may benefit from being informed about electric car insurance and appreciate the stress-free ownership experience it provides.
* Standard T&C Apply
** Currently, there are 2 tax regimes in India – new and old. To get the tax benefit you desire, choose the correct one after consulting an expert. You can opt for a regime change during the next financial year.
# Visit the official website of IRDAI for further details.
## All savings are provided by the insurer as per the IRDAI-approved insurance plan. Standard T&C apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.