Why is EV insurance higher?
While the EV policy in India has made significant efforts to make EV ownership an accessible proposition, it isn’t without its barriers. Given the relative novelty of EV technology itself, cost of R&D, manufacturing and, consequently, retail is higher, something mass adoption is certain to address in due course. While that’s still set in the future, among the more ongoing aspects that underline EV buying is the cost of insurance which, typically, is higher than that of insuring an ICE vehicle. What’s the reason behind the same? Read on to find out.
The primary reason behind the cost of electric vehicle insurance being higher is the compound nature of damage that can be caused to them and also the cost of repairs being significantly higher. As of today, EVs are typically more expensive than their conventionally fuelled counterparts, which also naturally translates to higher insurance cost.
Given the extent of technology that EVs, especially four-wheelers, offer, their components come at a higher cost, whether to source or repair, which reflects in the insurance tariffs as well. Another important consideration is the present status of aftermarket alternatives, an area which is so far underdeveloped when it comes to EVs. *
That said, there are no differences in the benefits and advantages insurance covers for electric and ICE vehicles. Insurance for electric vehicles covers all the aspects that insurance for ICE vehicles does, including accidental damage, natural disasters, fire, theft and also third-party injuries and property damage, packaged into third-party, comprehensive and even long-term cover. *
However, EV insurance isn’t an entirely hapless exercise. Choosing the right policy by comparing quotes and grasping the details of your policy are smart ways to go about getting EV insurance. In addition, IRDAI offers a 15 per cent discount on premiums of third-party car insurance, which too you must avail of. *
On the whole, EV insurance appears to remain on the higher side - at least for the time being, and for justifiable reasons - but do stay tuned for more updates! *
* Standard T&C apply
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.
