Things To Keep In Mind While Buying An Electric Vehicle Insurance

The electric vehicle market has been expanding over the last few years. Not just Indian automobile manufacturers, but global automakers have concluded that electric vehicles are the real future of the automobile industry.

The government aims to make India a leading electric vehicle market by 2030 and the ever-increasing popularity of electric vehicles is seen to support this endeavour.

As the automobile sector is undergoing a paradigm shift towards electric vehicles (EVs), there are a few noteworthy advantages of EVs. First, they are affordable in terms of the cost it takes to run them, followed by lower maintenance costs, and lastly, better for the environment than their internal combustion engine (ICE) counterparts. Further, the electric vehicle policy India under the Faster Adoption and Manufacturing of (Hybrid) and Electric Vehicles (FAME)-II Scheme offers incentives by way of tax breaks and subsidies for buying these EVs. Please note that tax benefit is subject to change in tax laws.

Since this technology is in a fairly nascent stage, the cost of protecting them is high. That’s when electric bike/car insurance comes in handy. Here are some things to keep in mind when buying an EV policy –

  • Selecting the right policy

Buying the right vehicle isn’t the only conundrum you need to deal with, but also with the right electric motor insurance policy. Insurance experts recommend that you take into consideration the price of your vehicle that needs to be insured. This way, a policy with adequate Insured Declared Value can be purchased. If you pay attention to this, you can keep your out-of-pocket expenses at a minimum in the event of an unfortunate situation that requires you to make an insurance claim.

  • Considering the vehicle’s special features

Electric vehicles work differently compared to ICE vehicles. Thus, you need to account for the different ways of working of an EV. Typically, EVs have a specified range after which they need to be recharged. Instead of refuelling, recharging is the unique feature of an EV. Considering it is the way how an EV operates, it is essential to look for a policy that covers the battery, its power supply unit, the regenerative capabilities of an EV and other mechanical damages. This provides comprehensive coverage.

  • Add-on covers

Add-ons are optional policy features that are available to buy with comprehensive electric car/electric scooter insurance. This add-on helps enhance the policy’s scope to include certain features that are otherwise excluded when paying an insurance claim. For instance, the zero-depreciation add-on pays even for the cost of depreciation of your vehicle at the time of claim. This, otherwise, is excluded from a standard EV policy.

There are several add-ons to choose from. Determining which add-on is right for you can be made simple by using an EV bike/car insurance calculator.

  • Battery replacement costs

Since EVs are entirely dependent on battery technology for their operations, their replacement is expensive. Thus, when choosing an EV policy, you must purchase a separate add-on cover for the replacement of the battery. This additional cover will help to avoid a financial loss while you might see a slight increase in the EV bike/car insurance prices.

Though EVs are expensive in comparison to ICE vehicles, they are beneficial in the long run. If you are buying a future-proof electric vehicle today, make sure to insure it using a suitable insurance policy.

* 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.