Electric cars are gaining popularity due to increased affordability and practicality. However, their insurance costs remain higher than traditional petrol or diesel vehicles. Several factors contribute to this discrepancy.
Higher Initial Cost:
Electric vehicles (EVs) generally have a higher price tag than their traditional counterparts. The Insured Declared Value (IDV), representing the car’s market value, is a key factor in determining insurance premiums. The higher the IDV, the more expensive the insurance premium, making EV insurance pricier.
Costly Components:
Electric cars feature advanced components, including large-capacity batteries. The lithium-ion battery, in particular, constitutes a significant portion of the vehicle’s total cost. The expense of repairing or replacing these costly components contributes to elevated insurance rates.
Battery Replacement Costs:
Electric car batteries have a limited lifespan, requiring periodic replacement. The frequent need for battery replacements and the high cost of lithium-ion batteries increases insurance premiums. As advancements lower battery costs over time, insurance rates are expected to follow suit.
Expensive Repairs:
Electric vehicles have intricate and expensive vehicle parts. Additionally, they demand highly skilled mechanics for maintenance and repairs. The shortage of specialised electric vehicle mechanics results in higher labour costs for repairs or replacements, influencing insurance premiums.
Limited Mechanic Availability:
The complexity of electric vehicle components requires specialised mechanics, whose scarcity contributes to higher maintenance costs. As the pool of skilled electric vehicle mechanics grows, costs may decrease, positively impacting insurance premiums.
Insurance Landscape In India:
In India, the Insurance Regulatory and Development Authority (IRDAI) sets third-party motor insurance rates for electric vehicles at a 15% concession compared to petrol or diesel-powered cars. The concession varies based on the vehicle’s battery capacity, with lower capacities enjoying higher concessions. #
Finding Affordable Electric Car Insurance:
Purchase Online:
Comparing policies, extras, and services online can help locate the most economical electric car insurance plan. Online platforms offer a paperless and hassle-free experience, enabling quick insurance with the necessary details.
Utilise No Claim Bonus (NCB):
Accrued NCB offers premium concessions for claim-free policy periods. Utilising NCB can significantly reduce the cost of electric vehicle insurance. Claims are subject to terms and conditions set forth under the motor insurance policy. ## *
Opt For AVoluntary Deductible:
Choosing a voluntary deductible, a predetermined sum paid voluntarily when filing claims can lower premiums. However, it’s advisable when there’s a low likelihood of frequent claims. ##
Install Anti-Theft Devices:
Installing anti-theft devices may lower premiums as they mitigate the risk of car theft. Some insurers offer concessions for taking steps to reduce the likelihood of theft. ##
Explore Special Concessions:
Insurance providers may offer special concessions. Keeping an eye out for these deals can further reduce the cost of electric vehicle insurance.
The benefits of buying electric cars in India include lower maintenance costs, reduced environmental impact, and government incentives promoting sustainable transportation. In India, comparing electric cars v/s petrol cars involves considerations such as lower operating costs, environmental advantages, and the expanding charging infrastructure for electric vehicles.
*Standard T&C Apply.
#Visit the official website of IRDAI for further details.
##All savings are provided by the insurer as per the IRDAI-approved insurance plan.
Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making any related decisions.
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.
