Just as buying an electric vehicle (EV) requires a different set of considerations compared to buying a conventional fuel-powered vehicle, buying EV insurance also requires one to consider a unique set of aspects. Just like conventional vehicles, it is a legal requirement to insure your EVs. But there are several factors that can influence your insurance premium and the kind of insurance you should get. Here, EVJoints brings you what factors an EV owner should consider before buying an EV insurance.
IDV (Insured Declared Value) is a crucial factor which influences the premium for comprehensive EV insurance. IDV is the maximum sum assured by the insurance company that is offered in case of theft or total loss of the vehicle. In short, it is the current market value of your vehicle.
Several factors affect the IDV and premium of an EV insurance policy, namely EV type, EV model, cost of vehicle, battery size, age of vehicle, safety features, coverage for specific components, etc. These are detailed below:
EV Type & Model: The type of EV you own mainly decides your insurance premium. Luxury EVs with high replacement costs, like the Kia EV6 or the Volvo C40 Recharge, can attract higher premiums compared to more affordable EVs like the Tata Punch EV or MG Windsor EV.
Cost of EV: EVs are typically costlier than their fuel counterparts. EV insurance is also relatively more expensive than insurance for comparable petrol or diesel vehicles. For example, Tata Nexon Petrol (base model)’s comprehensive insurance premium from ICICI Lombard starts at Rs 15,726. On the other hand, Tata Nexon EV Max (long range)’s comprehensive insurance premium from the same insurer starts at Rs 31,618.
EV Battery: An EV’s battery is its most valuable component. The cost of an EV’s battery is significantly higher than a regular vehicle’s battery. EVs with larger batteries typically have higher replacement costs, affecting the insurance premium.
Age of EV: Older EVs have lower IDV due to depreciation, which results in lower insurance premium.
EVs with Safety Features: EVs with in-built safety features (like ADAS, adaptive cruise control, lane assist system, etc) attract less premium. When a car is safe, the risk of it getting involved in an accident is reduced. Insurance companies take cognizance of this and reduce the car insurance premium.
Additional Coverage: If an EV owner opts for add-ons (like roadside assistance, additional battery cover, camera & sensor cover, etc), that will cost extra and be added to the premium.
Examples:
Let’s take into consideration Bajaj Allianz’s electric car insurance policy.
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The company offers third-party insurance & comprehensive insurance policies for electric cars. Bajaj Allianz’s comprehensive EV insurance covers accidents, theft, fire, natural disasters & third-party damages and offers on-the-spot settlement, cashless repair facility & customizable add-ons (like zero depreciation cover, motor protector cover,roadside assistance cover, lock & key replacement cover, etc). For instance, an add-on (for Tata Nexon EV Max) from Bajaj Allianz which includes free pick-up & drop, free garage benefits, 6-month repair cover and spot claim upto Rs 30,000, costs Rs 3294. The comprehensive plan (without this add-on) has an annual premium of Rs 34,723. With this add-on, the premium goes up to Rs 38,017 (Rs 34,723+Rs 3294).
If words like third-party insurance & comprehensive insurance confuse you, visit our blog here for basic information on EV Insurance.
Now , let’s have a look at Bajaj Allianz’s electric two-wheeler insurance policy.
The company offers third-party and comprehensive insurance policies for electric two-wheelers. Their comprehensive policies cover third-party liability, accident, theft, fire and natural calamities. Add-ons available include depreciation cover & motor protector. For instance, an add-on (for Ola S1 Pro) from Bajaj Allianz called the Zero Depreciation Cover, costs Rs 1193. The comprehensive plan (without this add-on) has an annual premium of Rs 7482. With this add-on, the premium goes up to Rs 8675 (Rs 7482+Rs 1193).
Conclusion:
In India’s rapidly growing electric vehicle market, it is vital for EV owners to familiarize themselves with the intricacies of EV insurance. EV owners can customize their policy by including add-ons. Whenever buying or renewing an EV insurance policy, EV owners can include or exclude add-ons as per their wish.
For more on this, refer to our blog here.
For more information on everything EV, visit EVGuide by EVJoints.
