Electric Car Insurance
Updated On Oct 22, 2023
Insurance for Electric Vehicles in India
The electric vehicle (EV) revolution is slowly but steadily gaining momentum in India. As the nation embraces the shift towards greener and more sustainable transportation, prospective buyers have a lot to think about – from charging infrastructure to the cost of maintenance. One crucial aspect that often gets overlooked is electric car insurance.
Table of Contents
- Understanding Electric Car Insurance
- Why Insure Your Electric Car?
- Types of Electric Vehicle Insurance Plans in India
- Insurance Premium for Third-Party Car Insurance Policy
- Key Features of InsuranceDekho's Electric Car Insurance
- How to Buy Electric Car Insurance Online?
- What's Covered Under the Comprehensive Electric Car Insurance Policy?
- What's Not Covered Under the Comprehensive Policy?
- Add-Ons for Electric Car Insurance
- FAQs on Electric Car Insurance
Understanding Electric Car Insurance
To meet the growing demand for EVs, car manufacturers are developing various types of electric vehicles tailored to the diverse needs of consumers. Alongside this trend, modern insurance companies like InsuranceDekho are offering insurance policies specifically designed for electric cars.
Electric car insurance is conceptually similar to traditional four-wheeler insurance policies for petrol and diesel vehicles. It provides financial protection to your EV against various damages like accidental damage, fire, natural disasters, theft, and third-party injuries or property damage. By choosing the right coverage for your electric vehicle, you can avoid unexpected out-of-pocket expenses.
Why Insure Your Electric Car?
Here why you should consider insuring your electric car with a comprehensive insurance b policy:
- Protect Against Third-Party Liabilities: In the unfortunate event of causing injury to a third party or damaging their property, your insurance policy will cover such liabilities.
- Avoid Legal Penalties: Comprehensive plans include mandatory third-party liability coverage, ensuring protection against non-compliance penalties related to car insurance.
- Prevent Costly Repairs: Comprehensive coverage includes Own Damage (OD) cover, which can significantly reduce repair expenses in case of accidents, fires, natural disasters, riots, or theft. This means you won't have to bear the brunt of hefty repair bills.
- Personal Accident Cover: While personal accident cover is mandated by law, it may need to be purchased separately with the insurance plan. This ensures financial compensation for accidental death, bodily injuries, or disabilities resulting from an accident.
Types of Electric Vehicle Insurance Plans in India
Currently, two main types of insurance policies are available for electric vehicles:
- Third-Party Car Insurance Policy: This kind of EV insurance policy is mandated by the Motor Vehicles Act, 1988. It covers liabilities arising from third-party injuries or property damage caused by your electric vehicle. However, it does not cover damages to your vehicle.
- Comprehensive Car Insurance Policy: This is an ideal insurance policy for electric vehicles, offering both third-party and own damage cover. In the event of damage due to accidents, vandalism, floods, storms, and more, this policy will cover repair costs as per the terms and conditions.
- Standalone Own Damage Insurance Policy: This type of insurance covers damage to your own vehicle but does not include third-party liability coverage. While it may be cost-effective, it leaves you vulnerable to third-party claims. This policy is available for newer cars, till the first 3 years from the date of purchase of the car, since while buying a new car you have to buy a 3 year Third Party Policy.
Insurance Premium for Third-Party Car Insurance Policy
IRDAI regulates insurance premiums in India. For electric vehicles, IRDAI has stipulated a 15% discount on third-party insurance premiums compared to those of petrol and diesel vehicles. Here's a breakdown of third-party insurance premium rates for private electric vehicles for one-year and three-year policies:
Vehicle Type (Battery Power)
Premium for 1-Year Policy
Premium for 3-Year Policy
Less Than 30 kW
More Than 30 kW Less Than 65 kW
More Than 65 kW
For premium rates of comprehensive policies for EVs, you can visit InsuranceDekho's website or mobile app to get an instant quote.
Key Features of InsuranceDekho's Electric Car Insurance
If you're considering insuring your electric vehicle, here are some benefits of choosing a comprehensive car insurance cover from InsuranceDekho:
- Zero Paperwork: InsuranceDekho offers a streamlined digital process, allowing you to purchase or renew electric car insurance within minutes. No need to deal with cumbersome paperwork or extensive form-filling; simply visit the website or download the mobile app to get started.
- Zero Commission: By purchasing insurance directly from InsuranceDekho, you eliminate agents or middlemen, resulting in lower premium costs. This approach enables you to access well-designed and comprehensive car insurance at an affordable price.
- Super Fast Claim Settlement: With InsuranceDekho, settling claims is hassle-free and straightforward. You can raise a claim anytime, anywhere by logging into your account. Features such as instant claim settlement for minor damages ensure a worry-free claims process.
How to Buy Electric Car Insurance Online?
If you're ready to secure insurance for your electric vehicle, follow these steps to purchase it online:
Step 1: Visit www.insurancedekho.com or download the mobile application.
Step 2: Enter your vehicle's registration number or select it from the car selector option.
Step 3: Choose your EV's variant type and provide relevant personal and previous policy details.
Step 4: Select the plan and optional add-ons that suit your requirements.
Step 5: Complete the premium payment online, and you'll receive the policy instantly in your inbox.
What's Covered Under the Comprehensive Electric Car Insurance Policy?
Comprehensive Electric Car Insurance includes coverage for damages or losses resulting from various situations, including:
- Injuries to third parties or damages to their property.
- Damage to your electric car in an accident.
- Damage to the car caused by fire or explosion.
- Accidental death or injury of the driver/owner.
- Natural disasters such as earthquakes, floods, storms, etc.
- Man-made disasters such as riots, vandalism, etc.
- Losses due to the theft of the vehicle.
What's Not Covered Under the Comprehensive Policy?
While comprehensive electric car insurance provides extensive coverage, it typically excludes the following:
- Damages due to electrical or mechanical failure.
- Damages resulting from regular wear and tear.
- Damages resulting from reckless driving.
- Driving the EV without a valid driver's license.
- Driving your EV under the influence of alcohol or other intoxicating substances.
Add-Ons for Electric Car Insurance
Add-on covers enhance the coverage of the standard comprehensive plan. Here's a list of popular add-ons for your electric vehicle insurance:
- Roadside Assistance Cover: Get emergency assistance services such as emergency towing, flat tire repair, minor repairs, spare key retrieval, etc.
- Outstation Emergency Cover: If your EV breaks down or is involved in an accident outside a 100 km radius from your residence, and the repair takes more than 12 hours, the policy will cover the expenses as stated in the add-on.
- Zero Depreciation Cover: In this type of add-on cover, the insurance provider will not consider depreciation when settling claims for parts replacement.
- Return to Invoice Cover: In case of theft or total loss of the vehicle, the policy issuer will pay the invoice value rather than the Insured Declared Value (IDV).
- No Claim Bonus Protection Cover: Even if you make a claim during the policy period, the No Claim Bonus discount is protected, resulting in a premium discount during policy renewal.
- Consumables Cover: This covers the cost of replacing consumable items not covered under the standard comprehensive plan, such as engine and gearbox oil, screws, nuts, bolts, etc.
- Key Replacement Cover: The insurance provider will cover the cost of replacing the vehicle key in case it's stolen, lost, damaged, or if the lock-set or key needs repair.
FAQs on Electric Car Insurance
- Is electric car insurance mandatory in India?
Yes, just like petrol & diesel vehicles, electric car insurance is mandatory in India. You should have third-party insurance cover for your EV vehicle.
- What's the difference between third-party and comprehensive electric car insurance?
Third-party insurance provides coverage for financial damages caused to the third-party like injuries or property damage, by your vehicle. Whereas, comprehensive insurance provides coverage for both third-party & own damages occurred in case of accidents, theft, natural disasters, etc.
- Are electric cars more expensive to insure than conventional vehicles?
Insurance premium amount for electric cars depend on various factors such as the model, its value, and the coverage options you chose. While initial costs might be higher due to the vehicle's value, some insurance providers offer discounts for electric vehicles.
- Do electric cars have higher repair costs?
Electric cars often have specialized components and technology that can be more expensive to repair or replace. Comprehensive insurance that covers damages to your EV can help offset these costs.
- Do electric cars have any insurance-related incentives in India?
To increase the adoption of EV vehicles in India, the IRDAI provides a 15% discount on third-party insurance premium rates for electric vehicles compared to those for non-electric vehicles.
- How do I file a claim for my electric car insurance?
Visit the insurance provider's website or app, login, provide details about the accident, and upload photos of the damaged vehicle. For minor damages, you might receive instant claim settlement. In the case of major damages, the insurer will arrange for the pickup, repair, and delivery of your electric vehicle.
- Are there any specific add-ons for electric car insurance?
There are no specific add-ons for electric car insurance plans. Some of the common add-ons in India are Roadside Assistance, Return to Invoice Cover, and Zero Depreciation Cover.
- Is personal accident cover mandatory for electric cars?
Yes, personal accident cover is mandated by law for all vehicles, including electric cars. This cover provides compensation in case of accidental death, body injury, or disabilities caused from an accident. However, you might need to purchase this cover separately with your insurance policy.