Key PointsElectric Vehicle insurance is not cheap it is almost 20% higher than an average IC vehicle, published in a report by CNBC.
OEMs will take into consideration the EV Data when claiming insurance.EV insurance could become cheap with Data Sharing policies in the future.OEMs are in the race to make their insurance firms as EVs are becoming popular.India Motor Insurance Market size: Estimated at ₹ 0.90 trillion in 2023.Expected to reach INR 1.53 trillion by 2028.
What is Electric Vehicle Insurance?
EVs are undoubtedly here to stay, with electric cars gaining global popularity. As we witness the rise of shared, autonomous, electric, and connected mobility, a new insurance offering has emerged – Electric Vehicle Insurance. This specialized insurance caters to the unique needs of electric vehicles, embracing the future of transportation.
Electric Vehicle (EV) insurance is a type of auto insurance specifically designed to meet the needs of EV owners. Traditional car insurance policies may not provide adequate coverage for electric vehicles, as they can be more costly and complicated to repair due to their advanced technology and components.
In this article, we will explore Electric Vehicle Insurance, its unique features, and its crucial role for EV owners. Additionally, we’ll touch on the rapid growth of Indian Motor Insurance at a CAGR of 11.16%.
NEW DELHI– Auto Insurance sector is currently burning cash as EVs are going into flames now and then. OEMs are trying their best to make insurers trust their vehicle and provide Insurance for that. EV insurance is based on many factors, like Kilowatt capacity, Battery technology, Cost of an EV.
There are two types of insurance currently being sold in India: –
- 1. A Third-Party Car Insurance Policy
- 2. A Comprehensive Car Insurance Policy (Most preferred)
How Much Does an Electric Car Insurance Cost?
An EV insurance with a battery capacity of 65kW will cost you around ₹ 6500, for 30-65Kw will cost you around ₹ 3000 and less than 30Kw will cost you around ₹ 1700. While buying EV insurance you must be aware of these abbreviations and jargon:
Insurance Cover Type
Third-party insurance provides coverage for third-party losses in addition to ensuring legal compliance. Comprehensive insurance covers both your car’s damages and legal responsibilities.
IDV
Insured Declared Value is offered in case of total loss or theft by the insurance company and is the maximum compensation that can be offered on the automobile.
Add-Ons!
Add-Ons are not important but can help in some other protection such as motor protection or flood protection.
No Claim Bonus
To preserve your No Claim Bonus, avoid making claims for insignificant damages. By opting for a GPS tracker installation in your vehicle, you can lower your premium rates.
What gets covered in Insurance?
Fires, Theft, Personal Accidents, Natural Calamities, and Accidents
At this moment in time, EVs are regarded as premium vehicles, boasting advanced technology that often makes them impractical to repair at shops without qualified technicians and specialized equipment. This scarcity has thus increased the insurance of an EV in the short term.
EV early adopters recognize the long-term benefits of electric vehicles, thanks to reduced maintenance needs and improved well-to-wheel efficiency. EVs are undoubtedly here to stay. To foster further EV adoption, the EV insurance industry requires an overhaul. Such a transformation will not only boost EV sales but also cultivate trust between OEMs and insurers, driving the sustainable mobility revolution forward.
