The demand for electric cars is continuously increasing in India. Amidst the rising prices of petrol and diesel, people are now buying EVs because of the environment as well as low running costs. But when it comes to electric car insurance, many people find that its premium is slightly higher than that of a normal petrol or diesel car.
In such a situation, the question arises that why is EV insurance expensive? What things should people buying a new electric car keep in mind while taking insurance?
Why is EV insurance expensive?
The most expensive part of an electric car is its battery. In many cases, the cost of the battery can be 30 to 50 percent of the total price of the car. If the battery gets damaged due to accident, flood, fire or any technical fault, it can cost lakhs of rupees to replace or repair it. This is the reason why insurance companies consider the price of the battery the most important thing while deciding the premium of EV.
Cost more in repairs
Apart from this, electric cars are equipped with advanced electronic systems, sensors, control units and software. Special technology and engineers are required to repair them. Currently, EV repair centers are not available in every city of the country, hence the repair cost is also high. This is why the insurance premium of EV may also be slightly higher.
Be sure to get a battery cover
If you are buying an electric car, then include battery protection cover while taking insurance. This cover provides financial assistance against damage to the battery due to accident, flooding, fire, short circuit or other electrical problems. Since EV batteries are the most expensive, this cover can save lakhs of rupees in future expenses.
Roadside assistance is also important
Electric cars are quite reliable, but during long journeys, there can be problems if the battery runs out or if a charging station is not available. In such situations, roadside assistance comes in handy. Under this facility, services like towing, on-road assistance and in many cases transportation to the nearest charging station or service center are available if needed.
Don’t decide just by looking at the cheapest premium
Many people choose a policy with a low premium, but later realize that it does not include the necessary features. That is why while buying insurance, not only look at the price, but also look at what covers are available in the policy. A good EV insurance policy must have battery protection cover, zero depreciation cover, roadside assistance, electrical and electronic parts cover and protection against natural calamities and floods. It would be better to choose the right policy only after comparing all these features.
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