Like any other vehicle, your electric vehicle also needs EV insurance to protect against damage from accidents, theft, malfunctions and more. However, compared to regular car insurance, insuring an electric vehicle can be almost 20-25% more expensive.
But what are the factors driving up this cost?
Here is a breakdown of everything you need to know about EV insurance pricing.
Factors That Affect EV Insurance Cost
Higher Battery Value
The battery in your EV is one of the most important components of the car and can account for almost 40-60% of its value. Since repairs are also quite technical and may not always be safe, a damaged battery may need to be replaced instead. These expensive replacements, even from a relatively minor accident, can result in a large claim for the insurer. This higher replacement risk can make EV insurance more expensive for the owner.
Specialised Repairs
Unlike regular cars, EVs cannot be repaired by every local mechanic. Their high-voltage systems and battery packs require trained technicians and specialised equipment. In many cases, repairs have to be carried out at authorised service centres. This can increase labour and repair costs for the insurer, which can also affect your insurance premium.
Advanced Technology
EVs use several advanced electronic parts, including sensors, control units and charging systems. These parts can be expensive to replace. Even a minor accident may sometimes require expensive replacement or repairs to these systems. This can increase the claim amount and make EV insurance costlier.
Higher Vehicle Value
Electric cars can have a higher purchase price because of their battery and advanced technology. This can result in a higher Insured Declared Value (IDV). Since the IDV is used to calculate the own-damage premium, a higher vehicle value can also mean a higher insurance cost.
Limited Repair Network
The EV repair network in India is still growing. There are fewer technicians with the required EV skills, and authorised service centres may not be available everywhere. This can lead to longer repair times and higher costs for labour, parts, storage and related claim services. Insurers consider these costs while pricing EV policies.
Quick Tips to Get Better EV Insurance Pricing
- Compare quotes from different insurers before choosing your policy.
- Select an IDV that reasonably matches your EV’s current value.
- Avoid making small claims when paying for minor repairs to keep your no-claim bonus.
- Check battery-related coverage before choosing a policy.
- Opt for slightly higher deductibles so that your premium cost can be reduced.
Recommended Add-ons for Your EV
- Battery cover: Can provide additional protection for eligible battery-related damage.
- Zero depreciation: Helps reduce depreciation deductions on eligible parts during a claim.
- Return to invoice: Can be useful if your EV is stolen or declared a total loss.
- Roadside assistance: Can help with towing and other roadside issues specific to EVs.
Choose the Right EV Protection With IndusInd
Electric vehicles come with different repair and replacement needs compared to regular cars. Choosing suitable car insurance for your EV can help you manage these costs better. With IndusInd Car Insurance, you get to choose from 3 EV-specific add-ons that provide protection for all important components of your EV.
So, choose better insurance for better protection.
Disclaimer: This article contains sponsored marketing content. It is intended for promotional purposes and should not be considered as an endorsement or recommendation by our website. Readers are encouraged to conduct their own research and exercise their own judgment before making any decisions based on the information provided in this article.
