Electric Car Insurance Unwrapped: What to Know
The world is witnessing a significant shift in the automotive industry, and it’s electrifying – literally. Electric cars (EVs) generate considerable excitement for their potential to combat climate change, reduce harmful air pollution, and create a sustainable future. As more individuals and governments embrace electric mobility, it’s essential to delve into electric car insurance’s details, features, acquisition, and the bright prospects it offers for a greener planet.
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What is Electric Car Insurance?
Electric car insurance is a specialised form of coverage designed exclusively for electric vehicles. While EVs share several characteristics with conventional internal combustion engine (ICE) cars, such as the need for liability coverage, they also come with unique components and risks that necessitate tailored insurance solutions.
What are the Features of Electric Car Insurance?
Electric car insurance brings several key features to the table —
- Lower Premiums: To encourage electric car ownership and promote sustainability, the Insurance Regulatory and Development Authority of India (IRDAI) has mandated a 15% reduction in third-party car insurance premiums for private electric cars. This reduction applies in comparison to similar-type private cars powered by petrol or diesel engines. This significant incentive acknowledges the environmental benefits of EVs and makes them a more attractive choice.
- Bespoke Policies: As the demand for electric cars in India continues to grow, insurance providers are developing specialised policies tailored to the unique needs of electric car owners. For instance, some companies plan to launch the Auto Secure e-Vehicle Comprehensive Policy. This policy goes beyond standard coverage, addressing “own damage” and damage caused if the electric car battery bursts while charging. Additionally, it includes standard third-party liability coverage for property damage and bodily harm.
What Does Electric Car Insurance Include?
Electric car insurance, much like insurance for traditional vehicles, offers a range of coverage options to protect both the vehicle owner and others in case of unforeseen events. Here’s a closer look at what electric car insurance typically includes, with a focus on offerings by insurers:
- Coverage for Road Accidents — One of the primary inclusions in electric car insurance is coverage for road accidents. Suppose your electric vehicle is involved in a road accident. In that case, the insurance company will cover the loss or damage resulting from the incident. This coverage provides financial support for repairing your vehicle and helps ease the burden of any associated costs.
- Repair and Replacement — Electric car insurance also covers repairing and replacing damaged parts or components. Suppose any part of your electric vehicle gets damaged and requires repair or replacement. In that case, the insurer will bear these expenses on your behalf. It ensures you can swiftly get your electric car back on the road without incurring significant out-of-pocket costs.
- Theft Coverage — Electric car insurance plans typically include theft coverage. If your electric car gets stolen, the insurance company can provide coverage under the total loss clause of the electric vehicle insurance policy. It means you may receive compensation equivalent to the market value of your stolen electric car, helping you recover your losses.
- Fire Damage Protection — Fire damage is another aspect covered by electric car insurance. Suppose your electric vehicle sustains damage due to a fire incident. In that case, the insurer will cover the damage’s repair cost. In cases where the damage is assessed to be severe, typically exceeding 70%, the insurance company may categorise it as a total loss and provide compensation accordingly. It ensures that you receive coverage in case of fire-related incidents.
- Coverage for Natural Calamities — Electric cashless car insurance also extends to damage caused by natural calamities such as floods, typhoons, or earthquakes. In regions prone to such disasters, this coverage can be invaluable. If your electric car gets damaged due to a natural calamity, the insurer will provide coverage for the loss or damage, ensuring you don’t have to bear the full financial brunt of the event.
- Personal Accident Cover — While not always included in standard electric car insurance policies, personal accident cover is advisable to purchase as an add-on or rider. Insurers offer this rider, providing coverage for medical expenses in the event of an accident. The coverage can extend up to ₹15 lakhs, offering financial protection for the policyholder’s medical needs arising from an accident.
- Mandatory Third-Party Liability — Following the Indian Motor Vehicle Act of 1988, purchasing a third-party insurance policy to drive vehicles, including electric cars, is mandatory. This policy provides coverage for any third-party liability resulting from a road accident. In essence, it protects you from potential legal and financial consequences if your electric car is involved in an accident causing harm or damage to others.
How do you get Electric Car Insurance?
Acquiring insurance for your electric car involves several options —
- Consult an Insurance Advisor: Seek guidance from an insurance advisor with expertise in electric car insurance. These professionals can provide insights tailored to your specific needs and preferences.
- Online Purchase: Many insurance companies offer the convenience of purchasing electric car insurance online. This approach streamlines the process, allowing you to compare policies from different providers from the comfort of your home. The online platform simplifies the selection process, making it easier for electric car owners to find suitable coverage.
- Offline Channels: If you prefer a more personalised approach, traditional methods of purchasing insurance through agents or brokers remain available. Agents can provide in-person guidance and help you navigate the complexities of electric car insurance.
As the automotive landscape evolves, embracing electric cars and motor insurance is a forward-thinking choice. It aligns with the global mission to combat climate change, decrease carbon emissions, and create a sustainable tomorrow for future generations. So, whether you’re already an electric car owner or contemplating the switch, remember that motor insurance isn’t just a policy; it’s a statement of commitment to a cleaner, greener, and more secure future on the road.