Electric Vehicle Insurance: As the popularity of Electric Vehicles (EVs) continues to surge, understanding the nuances of insurance becomes crucial for ensuring comprehensive protection. Here’s an insightful Q&A guide to unravel the intricacies and necessary coverage for EV insurance.
Table of Contents
What are the similarities and differences between Electric Vehicle Insurance and traditional vehicles?
Both EVs and Internal Combustion Engine (ICE) vehicles require compulsory third-party covers. However, insurance for EVs tends to be costlier, approximately 10 to 20 percent higher, owing to the higher vehicle cost. Animesh Das, from Acko Insurance, highlights this discrepancy, emphasizing that the premiums for EVs are influenced by their typically higher price tags.
Are there specific considerations for insuring EVs that differ from conventional vehicles?
Yes, EV owners may need additional coverage for critical components like the battery, which contributes significantly to the vehicle’s cost (approximately 60%). Experts suggest comprehensive coverage for the battery since major damage may necessitate a complete replacement due to irreparable issues.
Click on the picture below to Open Demat account with Zerodha
Should one rely solely on the manufacturer’s warranty for Electric Vehicle Insurance?
While manufacturers typically offer warranties, experts recommend purchasing extended warranties, especially for the battery, as any malfunction can be almost equivalent to buying a new vehicle. Additionally, opting for an add-on cover specifically for the battery is advisable to address unforeseen incidents like power surges or fire-related damages.
Also read: Have a look at the following story.
How does insurance handle detached parts like batteries, chargers, and accessories?
Zero depreciation should apply during claim settlements, including for the electric motor.
What considerations should be made regarding the Insured Declared Value (IDV) for aging EVs?
Ensure that aging EVs have the right IDV. While the exact depreciation rate for EVs isn’t explicit, experts recommend following a general rule of thumb of applying a 10 percent depreciation each year.
Are there essential add-ons specifically tailored for EVs?
Yes, there are several crucial add-ons for EV insurance. These include return-to-invoice add-ons, covering the vehicle’s original price in case of theft or complete damage. Additionally, specific covers for the electric motor, roadside assistance for charging-related issues, coverage for regular updates, eco-friendly incentives, NCB Protection, and more are highly recommended.
Disclaimer:
The content provided in this web post is for informational purposes only and should not be construed as financial advice. Readers are encouraged to consult with financial professionals before making any significant financial decisions.
