Insurance on Electric Vehicle: The central and state governments are also taking several steps towards creating a clean and green transportation system with the goal of making India a major electric vehicle market by 2030. Among these, the announcement of the government’s new EV policy on battery swapping with interoperability standards will help in faster adoption of EVs in the country. But if you are buying an EV then it is necessary to get insurance for it. If you are taking insurance on EV then it is important to keep a few things in mind.
Must have proper cover
Electric vehicles are costlier than fuel vehicles. Therefore, it is advisable to choose a policy that covers the vehicle completely and not just a third party cover that only covers damages caused to a third party person, vehicle or property. Apart from this, also look at the add-on cover offered by the insurance company for wider protection. The premium for different add-ons may vary from insurer to insurer.
must see premium
Compared to the petrol and diesel variants, the premium for a good insurance policy for the EV will still be higher. This will be due to repair cost and cost of battery replacement. This is also due to the advanced technologies used in EVs, which adds to the cost. However, customers can avail a 15 per cent discount on third-party premium. This means that you can get insurance for electric cars at very competitive rates.
The components of an electric vehicle are made using high technology and will cost more. Zero depreciation add-on coverage becomes beneficial during a claim as the amount calculated on the basis of depreciation is waived off and the entire amount on account of loss is paid. For example, the depreciation of a battery is much faster than the actual rate of a vehicle.
Location and impact on premium
The type and location of the vehicle is reflected directly on the underwriting of the policy. For example, if the risk of theft of vehicles is high in certain locations or the battery wears out quickly in some location, then the premium may be higher there.
insured declared value
Different insurance companies offer different Insured Declared Value (IDV). Before you check the IDV offered by the insurer of your choice, it is important that you do a valuation of its current market value. When you compare electric vehicle insurance policies online, make sure you find an insurer that offers an IDV that is closest to the market rate. This will be useful in case of theft or loss of the vehicle.