Things to Note While Buying Car Insurance for Your Electric Vehicle

As the government has launched a campaign to promote the use of electric vehicles, India gears up to become a 100% electric vehicle-driven country by 2030. Apart from environment conscious individuals and the government, electric vehicles are also getting more attention from the automobile companies. Auto companies such as Tata Motors and Mahindra & Mahindra are already taking electric vehicles seriously and look to launch their own soon. Due to this, e-cars are expected to gain widespread acceptance due to their low emission standards and increasing consumer awareness.

These E-cars come with their own perks, even though they might be slightly expensive as compared to motor cars. For instance, e-cars are noiseless, do not pollute the environment and most importantly saves on petrol and diesel. However, with the higher cost of the car, the payout for ensuring the electric vehicle also gets higher.

Even though they are slightly more expensive than traditional motor cars, e-cars still have plenty of advantages. Some of these include their low carbon footprint and noiseless capabilities. However, the higher cost of the vehicles causes more problems than you would realize. The best example is that of car insurance. An expensive can will always be costly to buy coverage for. Although, an advantage you have is that insurance payouts for electric cars would be higher as well.

Points to consider

Although there is a large popularity for these vehicles in India, there is no separate policy you can buy for these vehicles. This means there is no specific electric car insurance policy. Currently, most insurers provide cover for electric vehicles under the same policies as petrol and diesel cars. This offers an advantage to buy car insurance policy for your electric car. All you need to do is keep these points in mind while buying the policy:

  • Since electric cars have their own unique characteristics, it’s important to consider these before buying an insurance cover. Also, you should consider these issues before buying the car itself. Electric cars are very different from conventional vehicles in several ways. For instance, they can travel up to 150 miles before their batteries run out. These batteries take around 5 to 10 hours to charge fully. Experts suggest that the electrical and mechanical failure of a battery or a supply unit should be protected with a suitable coverage product. Hence, it is important to focus on your battery while selecting coverage for your electric car.

  • Before buying an insurance policy, it is important to know the vehicle’s value to ensure that the cover is being issued at the right level. You should ensure that you are getting the right amount coverage needed for you vehicle. It’s also important to check if the coverage is adequate to minimize the risk of having to cover the repairs out of you own pocket at the time of an accident.

  • Before buying an insurance policy, it is important to check the declared value (IDV), the type of plan that fits to your needs, extra features available, claim settlement ratio, insurance company’s performance, and much more. Moreover, you should check if the company offers the same car insurance facilities to electric vehicles. These facilities include cashless facility, roadside assistance, etc.

  • These cars are equipped with advanced technologies, and they require specialized repairs to keep them running smoothly. Aside from these, the cost of these components can also be high. Although add-on covers are required for e-cars, they may vary depending on the vehicle’s make and model. Also, some add-ons are usually not included in the comprehensive motor insurance policy for electric vehicles. Vehicle owners should also consider the risks of damages caused by improper charging and towing of their vehicle. These risks can occur even if the vehicle is not plugged in. The risks of damages caused by charging and other issues should be looked into. You should if there are add-ons available with your company to cover these risks.

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