Electric vehicles, or EVs, are all the rage these days. With their sleek designs and eco-friendly performance, it is no wonder why more and more people are switching to EVs as their mode of transportation. But as exciting as it is to own an electric car, it’s important to remember that car insurance is a crucial component of car ownership. After all, no matter how environmentally friendly your car is, accidents can still happen on the road. This is why having the right car insurance coverage is essential to protect yourself and your vehicle.
What is electric car insurance?
Electric car insurance is a type of auto insurance that is specifically tailored to the unique needs and risks of owning an electric vehicle. Car insurance for electric vehicles can provide coverage for things like the high cost of specialised parts and repairs, liability related to battery damage, and charging infrastructure damage.
There are mainly two types of electric car insurance-
- Third-party car insurance-In India, the Motor Vehicles Act of 1988 makes it compulsory for all vehicle owners to have at least a third-party liability insurance policy. The third-party insurance policy covers any legal liability arising from damage or injury caused to a third party in an accident involving the insured vehicle. It typically includes bodily injury liability coverage and property damage liability coverage.
- Comprehensive car insurance: It is optional to purchase comprehensive coverage, which protects your vehicle against damage from vandalism, theft, and other events other than collisions. This coverage may also include coverage for natural disasters, falling objects, and damage from animals.
Impact of owning an electric car on insurance rates
Read on to know factors related to electric car insurance can increase or decrease the premium amount
A: Factors that may increase insurance rates
There are a few reasons why electric car insurance can be more expensive than traditional car insurance.
- Electric cars are more costly to repair and replace due to their specialised components and technology. In an accident, repairing or replacing these components can drive up the cost of an insurance claim.
- Electric cars are relatively new to the market, meaning there are fewer data available for insurance companies to use in calculating risk. This can lead to higher premiums as insurance companies may need to err on the side of caution to ensure that they are not taking on too much risk.
- Electric cars may be more likely to be targeted by thieves due to their high value and the perceived rarity of the vehicles.
B: Factors that may decrease insurance rates
However, there are also factors that may decrease electric car insurance rates.
- The advanced safety features of electric cars, such as collision avoidance technology and automatic braking, may lead to lower rates as they can reduce the likelihood of accidents.
- You may receive discounts for eco-friendly driving habits, such as using regenerative braking or charging during off-peak hours.
- Some insurance companies offer specialized policies and incentives for electric car owners, such as coverage for charging stations or lower rates for hybrid cars.
Ultimately, the cost of electric car insurance will depend on various factors, including the make and model of the car, your driver’s history and location, and the insurance company’s policies.
Tips for Lowering Insurance Rates for Electric Cars
Here are some ways to reduce electric car insurance costs:
- Shop around and evaluate the prices of different insurance providers: This can help you find the best rates and coverage options available.
- Take advantage of discounts for safe driving habits. Some insurers offer discounts for drivers with a safe driving history, such as a clean driving record or completion of a defensive driving course.
- Bundle policies to save money: You may receive a discount on your overall insurance costs by combining multiple insurance policies, such as home and auto insurance.
- Select higher deductibles to lower monthly premiums. A higher deductible means you’ll pay more out of pocket in times of an accident, but it can lower your monthly insurance costs.
- Consider specialised insurance policies for electric cars. These policies may offer unique coverage options tailored to the needs of electric car owners, such as coverage for the cost of replacing specialized EV batteries or compensation for lost charging time due to accidents.
- Set the right Insured Declared Value (IDV): The IDV is the maximum amount the insurance company will pay in case of a total loss or theft of your vehicle. Set the IDV at the current market value of your electric car to ensure that you are adequately covered.
- Avoid small claims. It is often recommended to avoid raising small claims as it can lead to a loss of a no-claim bonus (NCB) and an increase in premium rates. If the repair cost is less than the car’s IDV (Insured Declared Value), it’s advisable to pay for the repairs out of pocket instead of raising a claim. This way, you can retain your NCB and prevent an increase in premium rates at renewal.
- Add on extra coverage: Look for add-ons that can enhance your car insurance coverage, such as zero depreciation cover, engine protection, roadside assistance, and personal accident cover. These add-ons may come at an additional cost, but they can provide extra peace of mind and protection.
By using these strategies and selecting the right insurance policy as per your needs and budget, you can save money on electric car insurance costs while still ensuring you have the coverage you need to protect your investment.
Owning an electric car can positively and negatively affect insurance rates. As electric cars continue to grow in popularity, it is essential for you to consider insurance rates as a factor when purchasing electric car insurance. By shopping around, comparing quotes, and considering specialized insurance options, you can save on your car insurance costs while ensuring you have the coverage needed to protect your investments.
Disclaimer – The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.
Santosh Kumar is a Professional SEO and Blogger, With the help of this blog he is trying to share top 10 lists, facts, entertainment news from India and all around the world.