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Why Will Insurance For Electric Vehicles Be More Expensive?

Published On Jul 03, 2022 10:00 AM By InsuranceDekho

Why Will Insurance For Electric Vehicles Be More Expensive?

Electric vehicles are becoming more practical and affordable, and their growing popularity has prompted more people to purchase them. Electric automobiles, although becoming more economical, are still more expensive to insure than gasoline or diesel-powered vehicles. But, in comparison to their gasoline-powered counterparts, why are electric cars more expensive to insure? Continue reading to discover the costs of electric car insurance and why they are so costly to insure. Electric cars reduce pollution in cities significantly due to their zero emissions. They are quiet and are referred to as zero-emission vehicles since their engines produce no emissions or exhaust.

Why Is Electric Vehicle Insurance More Expensive?

Electric automobiles are initially pricey since they are a new-age innovation. Electric cars can save money in the long run, but they are pricey to purchase at first. Similarly, when the cost of an electric automobile is high, the cost of electric vehicle insurance is also high. The following are the primary reasons behind the high cost of electric car insurance:

Vehicle Costs Are Expensive:

One of the most fundamental and obvious causes for the greater premium for electric vehicles is their cost. Electric vehicles are nearly twice as expensive as regular automobiles, so if one is involved in an accident, insurance companies will be forced to pay a huge repair bill. As a result, the premium is rather substantial.

Repairs and Spare Parts are Expensive:

Another reason for the increased insurance costs is that electric car spare parts are more expensive than regular automotive components, and electric car maintenance work is likewise more expensive. Only technical professionals are capable of doing repairs on electric vehicles. Insurance companies prefer to demand a higher premium since both the parts and the repair specialist are expensive.

Scarcity of Qualified Technicians:

If you have an accident and your electric car's components need to be repaired, it's possible that you won't be able to get the parts you need or that competent technicians will be hard to come by. The number of experts that specialize in maintaining electric automobiles is substantially fewer, so the insurance company has to go to great lengths to find them.

Ways to Lower Electric Vehicle Premiums

  • One of the simplest methods is to conduct extensive research and look for attractive discounts. You may use the insurance aggregator's website to compare prices from several insurance companies and choose the best one that costs a reasonable premium for comprehensive coverage.
  • Paying the premiums all at once will save you money compared to paying in installments.
  • Dashboard cameras and telematics devices can be installed in an electric vehicle. Telematics systems aid in the tracking of driving habits like speed, acceleration, and braking, among other things. Good driving behavior is rewarded by insurance providers with lower premiums. Even while filing claims, dashboard cameras might serve as documentation in the event of an accident.

Premiums for electric cars are expected to fall in the future, according to some experts and industry observers, as automakers attempt to reduce the cost of manufacturing these vehicles and the number of certified technicians continues to rise.

Take Away

Electric vehicles are becoming more popular in India, and some corporations have already created their own electric automobiles. Buyers have started to choose these vehicles because of their environmental friendliness. If demand grows, the cost of these hybrid vehicles will undoubtedly fall, resulting in lower insurance premiums in the future.

Also read: Consumables Add-on to Car Insurance

All You Need to Learn About Personal Accident Coverage in Car Insurance

Disclaimer

This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.
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