Does Electric Car Insurance Cover Battery Replacement?


23 May,2023


15 February,2024

electric car battery insurance

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    Replacing an electric four-wheeler battery can be expensive. That's why many owners of such vehicles check if their battery is covered by their car insurance policy. Reputed insurance companies such as Shriram General Insurance provide a variety of insurance policies and add-ons for electric vehicles and their batteries.


    Due to rising fuel prices and the government's encouragement, people in India have slowly started using electric vehicles (EVs). In July 2022, over 13 lakh EVs were used in the country and this number continues to rise till today.  


    As the EV industry is quite new, there are many questions in the minds of four-wheeler owners regarding the vehicles and their insurance. However, the biggest concern that electric car owners have is about the coverage of the car battery in their insurance policy. Thankfully, getting insurance for electric vehicles has become easy by the reputed insurance company such as Shriram General Insurance.


    Shriram General Insurance provides a wide variety of vehicle insurance policies with different types of coverage and multiple add-ons. The company has ensured the process of applying, renewing, claiming insurance simple and hassle-free.  Car owners can head to the Shriram General Insurance website and insure themselves instantly.


    Read on to understand whether the insurance of EVs covers the car battery or whether this coverage has to be purchased separately. 


    What is an Electric Car Battery?

    Electric vehicles use a large battery as an energy source. An electric car battery is a larger version of lithium-ion batteries found in devices such as smartphones. These batteries are made of thousands of lithium-ion cells working together.


    The battery of an electric car gets charged when the vehicle is plugged in and its energy is expended while the vehicle is operated. They are lighter than other rechargeable batteries and have a higher energy density as well. The main concerns about these batteries are their lifespan and replacement costs.


    Replacing an Electric Vehicle's Battery 

    Electric car batteries go through multiple charge and discharge cycles when the vehicle is in use. Naturally, the efficiency of the battery goes down with time and use. These batteries are designed to be 'buffered', i.e., not used at their maximum capacity and they also have smart cooling systems.


    This helps in extending their lifespan. Usually, automobile companies provide a warranty of up to eight years or 1.6 lakh kilometres, whichever comes earlier. After this period, vehicle owners may need to change their electric car battery.


    Is the Car Battery Covered Under Insurance for Electric Vehicles? 

    Car Insurance usually doesn't include vehicle battery coverage. However, it must be noted that comprehensive vehicle insurance will not cover losses related to depreciation and wear and tear of the vehicle.


    The battery of an electric car has a definite life span and will need to be replaced eventually and since this is classified as wear and tear of a component of the vehicle, it will not automatically be covered under a comprehensive insurance policy.


    However, insurance companies do sell electric car battery coverage as an add-on feature or rider. Such add-on features help to extend the coverage of the vehicle insurance policy at an extra cost.


    Wrapping Up

    Electric car batteries have finite lives and need to be replaced eventually due to damage or wear and tear. Wear and tear damages are usually not included in vehicle insurance policies, so vehicle owners will need to purchase electric car battery coverage as an add-on.


    Shriram General Insurance has made the process of buying vehicle insurance simple and hassle-free through online process, saving our policy holders both time and resources. With constant customer support and a wide range of insurance solutions, we have built great trust with vehicle owners in India.


    Head on to the Shriram General Insurance website to get a quote today.


    Key Highlights

    • Electric car batteries have fixed lifespans and have to be replaced once that period is over due to wear and tear.
    • Vehicle insurance policies do not cover damages related to wear and tear. Hence, car battery add-on will have to be purchased separately from the vehicle owner.
    • Shriram General Insurance provides car battery insurance separately as an add-on for policy holders.
    • Shriram General Insurance has made the process of getting an electric vehicle insured fast, easy and hassle-free.


    1. Is the insurance of electric vehicles more expensive than petrol cars?

    Usually, the insurance for electric vehicles is more expensive than for petrol cars. This is because EVs are currently priced higher than petrol cars and hence, their Insured Declared Value (IDV) tends to be higher. This results in higher insurance premiums.

    1. Is car insurance compulsory in India for electric vehicles?

    As per the Indian Motor Vehicles Act of 1988, all vehicles being driven on the road must have at least third-party coverage. This requirement also extends to electric vehicles.

    1. What are the factors that affect the insurance premium of an electric vehicle?

    An electric vehicle's insurance premium is decided after considering various factors such as the model of the car, the manufacturer, the capacity of the battery pack, the geographical zone, the insured declared value (IDV) and more.

    1. Is third-party insurance sufficient for electric cars?

    A third-party insurance policy only covers damages caused to a third-party while driving the insured vehicle. It does not cover damages and losses to the insured vehicle itself or to the policy holder or driver. Hence, third-party insurance may not be sufficient for those who want to protect their electric vehicles against a wide range of risks and liabilities. These will be covered by comprehensive vehicle insurance policies.

    1. Can the lifespan of an electric car battery be extended?

    An electric vehicle's battery has a finite lifespan and its life cannot be extended beyond this period. These batteries go through multiple charge and discharge cycles when the vehicle is in use and the efficiency of the battery goes down with time and use.

    However, electric vehicle owners can elongate the lifespan of their car's battery with proper maintenance and care. For example, they can focus on keeping the battery clean and minimising heat exposure.

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