Did You Know How The Motor Insurance Premium Differs For An Electric Vehicle Vis-À-Vis Fuel-Based Vehicles?

Electric Vehicles vs. Gas Cars: Total Cost of Car Ownership | Money

Green mobility is mainly determined by electric cars (EVs). The appeal and adoption for these electric cars is seen to spread beyond major cities to smaller ones as well.

However, adopting EVs is not without its limitations and uncertainties. Whether insurance for electric vehicles and fuel-based vehicles differs is a frequently asked subject. EVs are not an exception since automobile insurance is required by law. Thus, it is important to understand insurance jargon.

Does The Engine You Choose Affect The Premium You Pay?

Yes. The brand of the engine directly affects the premium. Higher cubic capacity fuel-powered vehicles will have higher third-party rates than vehicles with lower degrees. But internal combustion engines are absent from EVs. They have a machine that is an electric motor. Because of this, the same cubic capacity classification is irrelevant. So, how is the EV premium calculated? The determining criteria for EV premium are kW or kilowatts rather than cubic centimetres.

Is EV Insurance More Expensive?

The answer is more complex. Let’s dissect this.

Concession On Premium: Third-party insurance is legally required for both fuel-based and electric vehicles. The IRDAI has offered a 15% concession on the price of vehicle insurance for EVs, which is the only difference to encourage green mobility through EVs. In practice, that amounts to a third-party premium of about Rs 1,700 for EVs under 30 kW and about Rs 6,700 for EVs above 65 kW, while the price for EVs between 30 and 65 kW is Rs 2,700. #

Here are the different figures when discussing cars that run on petrol. The third-party premium for more expensive vehicles, such as SUVs and luxury sedans, with an engine size above 1,499 ccs, is Rs 7,897 plus tax. The premium for hatchbacks with an engine capacity below 1,000 ccs is Rs 2,100 plus taxes. [1]

Higher Maintenance: EVs are sophisticated when it comes to full motor insurance coverage.

For instance, the battery is the most critical component of an EV, and it will eventually need to be replaced. Additionally, because a wealth of information is available, insurers can better estimate risk when it comes to fuel-based vehicles. However, because EVs are a relatively new idea, risk profiling still has a way to go.

How Can You Increase The Protection Of Your EV?

EVs are sophisticated pieces of equipment. They require a skilled specialist to fix the damages, particularly in the interior portions of the automobile, so you can only get them fixed at some other neighbourhood garage. One must choose add-ons like roadside assistance coverage and a comprehensive policy to avoid any unfortunate situation. The insured greatly benefits from buying electric cars in India from zero depreciation coverage, given the nature of the machinery. Choose a battery protection add-on to protect your EV in the event of battery damage. These covers will supplement your insurance for electric vehicles and give your EV an additional layer of preventive protection. *

* Standard T&C Apply

# Visit the official website of IRDAI for further details.

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.