Electric vehicles (EVs) are becoming increasingly popular in India. With the looming threat of climate change and the ever-rising petrol and diesel prices, more and more people are turning towards eco-friendly means of transportation. The latest data from the Federation of Automobile Dealers Associations (FADA) revealed about a 185% increase in the sale of electric vehicles in October 2022 compared to October 2021 (Source: Economic Times).
With this increase in sales, new and prospective buyers are also looking for ways to protect their electric cars, and the first and foremost way is to get car insurance. With many insurance providers providing online facilities, you can now buy car insurance online and get your car insured quickly.
Today, we will discuss everything you must know about electric car insurance.
What is electric car insurance?
Many insurance providers offer car insurance specifically designed for electric cars. Since all vehicle owners must have at least third-party insurance in India, many EV buyers are getting car insurance online.
Comprehensive car insurance for electric vehicles is similar to insurance policies for traditional combustion engine vehicles. It provides financial cover against your own damage and third-party liabilities. With the right comprehensive car insurance, you will not have to pay for any loss out of pocket. The insurance typically covers damage/loss to the insured vehicle due to accidents, fires, theft, and natural or manmade calamities. It also covers any damage to the third-party vehicle and injury to the third party.
To encourage people to buy electric cars, the Insurance Regulatory and Development Authority of India is offering a 15% discount on third-party insurance premiums for EVs.
What are the benefits of electric car insurance?
Car insurance online is a saviour in times of need. Here are some benefits of having a robust car insurance policy:
Protection against third-party liability
In case of an accident, your electric car insurance online will pay for the loss or damage to a third-party person or property, respectively. It will also cover expenses in case of injury to the third party.
Cover for personal accident
With a separate personal accident cover, your comprehensive car insurance will also provide compensation in case of unfortunate disability or death due to an accident.
Financial security
The repair cost and medical expenses can be high in case of an unforeseen accident. In case your electric car is stolen or damaged due to natural calamity, you will face complete loss. Having comprehensive car insurance will ensure you receive financial protection in all these situations. It provides you with financial security.
Adherence to the law
As per the Motor Vehicle Act 1988, it is compulsory for all vehicles in India to have third-party insurance. Getting electric car insurance will help you avoid any penalties/fines levied by the law for non-compliance.
Types of electric car insurance plans
There are two types of electric car insurance plans:
Third party car insurance policy
This type of insurance is mandatory in India. Under this, policyholders get financial cover against third-party liability. The insurance provider will cover any damage/loss to the third-party vehicle and injuries to the third party due to an accident involving the insured electric car. However, the policyholder’s vehicle is not covered under this policy. You can purchase this electric car insurance online easily.
Comprehensive car insurance policy
A comprehensive car insurance policy provides financial cover for both own damage and third-party liability, making it an ideal insurance policy. Under this policy, the insurance provider will pay for third-party damages and any loss to your vehicle. In case your vehicle is damaged due to a manmade or natural calamity, fire, vandalism, storms, theft etc., insurance will pay for repair or total loss. It is recommended to get this policy as it provides better coverage and adheres to the law.
Coverage under comprehensive electric car insurance
Now that you know the different types of electric car insurance, let us discuss the coverage under comprehensive car insurance.
Inclusions
The inclusions of comprehensive car insurance include:
- Damage to third-party vehicle/property
- Injuries to third-party
- Damage to the vehicle in case of fire or explosion
- Damage due to manmade disasters such as riots
- Damage due to natural calamities such as floods, earthquakes, typhoons, storms etc.
- Loss due to theft
- Injury to the car owner/driver
- Compensation in case of death
- Replacement or repair of any damaged part
Exclusions
- Any damage to the vehicle due to electrical or mechanical failure
- Regular wear and tear
- If the accident takes place when you are driving without a driver’s licence
- If you are driving your electric car under the influence of alcohol or drugs
- In case of intentional negligence
- If your insurance plan lapses
- In case of consequential damage
Add-ons for electric car insurance
There are many add-ons available for your electric car insurance online. Let us discuss some of them.
- Zero depreciation cover: Zero depreciation cover will allow you to get a higher claim from the insurer. The insurer will not cover the depreciation of replaced parts during settlement.
- Roadside assistance cover: The insurer will cover expenses for any emergency assistance you may require when on the go. This includes cover for towing, minor on-site repair, changing a flat tire etc.
- Key replacement cover: With this add-on, the insurer will cover the cost of key replacement in case your keys are lost or stolen.
- No Claim Bonus protection: No Claim Bonus protection cover protects your NCB from resetting to zero despite making a claim during the policy period. This is especially useful as it allows you to get a discount on insurance premiums.
- Personal accident cover for passengers: Under this add-on, the insurer will provide you compensation in case of death or permanent disability of your passenger(s) in case of an accident.
How to choose the right insurance for your electric car?
Choosing car insurance online for your electric car is a crucial decision. You must research well before choosing one. Here are a few things you should keep in mind while selecting an insurer.
- Choose an insurer that provides wide coverage at a lower premium.
- Read the policy terms and conditions well.
- Don’t settle on one insurer. Check multiple plans before making your choice.
- Ensure the insurer offers the option of purchasing comprehensive car insurance online.
- Check the claim history of the insurer to understand how their claim process works.
The right car insurance can help you protect your vehicle and your finances. Research well before choosing an insurance provider.
Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.
