Get a Better Understanding of Electric Vehicle Insurance Rates
How much does it cost for electric vehicle insurance? Or what are the electric vehicle insurance rates? These are the questions we get a lot from the general public.
Why not address it through this blog?
The way the automotive industry has experienced the sudden shift in sustainability and green mobility, there has been an increase in the adoption of electric vehicles (EVs).
Do you know, according to a report by BWAutoWorld, the EV market in India is booming and will continue to grow by approximately 47% every year from 2022 to 2027?
Since electric vehicles are taking the lead in the movement, people have started choosing electric cars. But they need help with picking the right insurance for their electric cars.
So, this blog is aimed to explain all things related to electric vehicle insurance, and electric vehicle insurance rates.
About Electric Car Insurance?
Electric car insurance in India gives coverage to electric cars and is different from two-wheeler and four-wheeler vehicle insurance.
The aforementioned insurance covers all the financial losses that you might suffer in case of any damage or emergency involving your electric car.
Also, an EV car insurance policy is made mandatory under The Motor Vehicle Act, of 1988.
What are the Electric Vehicle Insurance Rates?
Electric vehicle (EV) insurance costs can vary based on several factors, but they are typically comparable to or slightly higher than insurance for traditional fuel vehicles. Here are some key factors influencing the cost of EV insurance:
Vehicle Value and Repair Costs
EV cars are expensive and so this leads to higher insurance premiums because the potential payout by the insurer is greater.
This also means that the cost to repair an EV can be higher due to specialized parts and labor. Battery replacement, for instance, can be expensive and affect premiums.
Driving Habits and Usage
EV owners often drive fewer miles compared to gasoline car owners, which can lead to discounts. Some insurers offer lower rates for EVs because they are often used for shorter, more frequent trips, which statistically involve lower risk.
Technology and Safety Features
EVs are equipped with advanced safety features and technology, which can sometimes lower insurance costs due to reduced accident risks. Many EVs receive high safety ratings, which can contribute to lower premiums.
Driving Habits and Usage
EV owners often drive fewer miles compared to gasoline car owners, which can lead to discounts. Some insurers offer lower rates for EVs because they are often used for shorter, more frequent trips, which statistically involve lower risk.
Insurance Company Policies
Some insurers specialize in EV coverage and may offer more competitive rates. Look for insurance companies offering discounts specifically for EVs or green vehicles.
Tips to Find a Low-Cost Insurance Policy for Electric Cars
- Find the best rate by comparing quotes from multiple insurers.
- Choosing a higher deductible will reduce the premium amount significantly. So increase deductible.
- If you have a good driving record, drive a low-mileage vehicle, or the vehicle has safety features, you may be able to find discounts.
- Some insurers offer policies that adjust premiums based on actual driving behavior, which can be beneficial for EV owners.
Thanks to awareness and technological advancements, electric cars are likely to become more affordable in the coming years.
However, today these cars are expensive with higher maintenance demands. So, if you are an electric car owner, and you must be looking for budget-friendly electric vehicle car insurance then PolicyWings can be of great help to you. Reach out to us today!
FAQs
Electric vehicle insurance is coverage designed for electric cars, to protect against risks like accidents, theft, and damage. Sometimes it also includes specialized provisions for battery and charging equipment, addressing the unique needs of electric vehicle owners.
The insurance amount for electric cars is calculated based on several factors like vehicle value, repair cost, battery type, driving history, and usage.
Yes, EV batteries are generally covered under electric vehicle insurance and are part of comprehensive and collision coverage. EV insurance policies cover damage, theft, and sometimes degradation, but specific terms vary by provider and policy, reflecting the high cost and critical nature of the battery.
The new EV policy in India for the year 2024 includes subsidies, tax benefits, and incentives for electric vehicle adoption. It aims to promote infrastructure development, including charging stations, and focuses on reducing emissions to encourage a shift towards sustainable transportation.
Yes, electric vehicle insurance is generally more costly than insurance for petrol or diesel vehicles due to higher repair and replacement costs, especially for batteries. However, premiums can be offset by incentives, lower running costs, and specialized EV insurance discounts.
