Things to Know Before Buying Electric Car Insurance
Posted on May 18,2023
According to the Indian Economic Survey 2022-2023 the domestic electric vehicles market is likely to grow at a compound annual growth rate (CAGR) of 49% between 2022 and 2030. Annual sales are also predicted to hit a whopping 1 crore units by 2030.
In light of this steady rise in demand, it is important to understand the benefits of buying electric car insurance in India. Read this blog post to know more about electric vehicle insurance, including the coverage provided, add-ons, premiums and other important details.
Electric vehicles have recently started to generate a lot of excitement in the automotive world. This could be because of the rising cost of fuel and the urgent need to deal with problems like climate change that affect the environment. Whatever the reason, this shift towards electric technology has opened a promising path for the future of the auto industry.
Those who are planning to buy an electric vehicle should know that these vehicles require certain compliance in the form of insurance. Electric car insurance is a contract between the EV owner and the insurer.
The optimum car insurance for electric vehicles provides financial protection against various liabilities, including accidental damages, fires, natural disasters, civil unrest, thefts of the insured vehicle and injuries or damages to a third-party person or property.
Buy electric car insurance online today with Shriram General Insurance and enjoy quick claims processing and the support of our friendly customer executives. With that said, let’s understand better about electric car insurance.
Understanding Electric Car Insurance
Electric vehicle insurance is a type of insurance designed specifically for electric cars and is provided by reputed insurers such as Shriram General Insurance. These policies provide coverage for the unique components of electric vehicles, including their batteries and charging infrastructure, which can be costly to repair or replace.
Electric vehicle insurance policies often provide additional benefits, such as coverage for damages caused at charging stations as well as coverage for lost charging cables.
As electric vehicles become more popular, there are more insurance companies that are providing specialised policies for them, making it easier for owners to find comprehensive coverage that meets their needs.
The Insurance Regulatory and Development Authority of India (IRDAI) has also set different premium rates for third-party insurance coverage, depending on the size of the vehicle's battery.
In a new proposal for the year 2022-23, the regulator suggested reductions in insurance premiums for electric and hybrid electric cars, with a 15% reduction for electric cars and a 7.5% reduction for hybrid electric cars.
Benefits of Buying Electric Car Insurance
Here are some of the key benefits of buying optimum car insurance for electric vehicles:
- Protection Against Third-Party Liabilities:
It is an essential component of any comprehensive insurance policy and protects the policy holder against legal claims and financial damages stemming from a third-party person or property.
It is therefore crucial for electric vehicle owners to ensure that their insurance policies include adequate coverage to protect themselves against any potential liabilities that may arise.
- Avoid Penalties:
In addition to providing coverage for damages or injuries caused to a third-party person or property, third-party liability also protects the policy holder against any non-compliance penalties related to four-wheeler insurance. To avail of this benefit, the policy holder will have to ensure that their electric vehicle insurance plan is up to date.
- Avoid Repair Bills:
It provides coverage for damages caused by accidents, fires, natural disasters, riots and thefts. In the event of such incidents, the policy covers a significant portion of the repair bills, which can get quite expensive.
The coverage provided by insurers such as Shriram General Insurance for electric vehicles will help alleviate the financial strain associated with damages, thereby providing peace of mind to policy holders.
- Personal Accident Cover:
It provides policy holders with comprehensive financial compensation in the event of accidental demise, injuries or disabilities resulting from an accident. It is important to note, however, that personal accident coverage must be purchased separately and is not included in a third-party or comprehensive four-wheeler insurance plan.
What Does Electric Car Insurance Include?
These are some of the common inclusions that insurers such as Shriram General Insurance provide:
- Road Accidents:
If the electric vehicle is involved in a road accident, the insurance company will cover any loss or damage resulting from it.
- Repair and Replacement:
If any part of the electric vehicle is damaged and needs replacement or repair, insurers will pay for it on the owner's behalf.
If the electric car is stolen, the insurance company can provide coverage under the total loss clause of the electric vehicle insurance plan.
If the electric vehicle sustains damage due to a fire, the insurer will cover the cost of repairing it. If the damage is assessed to be over 70%, the insurance company will pay for it under the total loss clause of the policy.
- Natural Calamity:
If the electric car is damaged due to a natural calamity such as a flood, typhoon or earthquake, the insurer will provide coverage for the loss or damage.
- Personal Accident Cover:
It is advisable to purchase in addition to a comprehensive electric vehicle insurance plan. This rider is available in Shriram Car Insurance and provides coverage for medical expenses of up to ₹15 lakhs to the policy holder.
- Third-Party Liability:
As per the Indian Motor Vehicle Act of 1988, it is mandatory to purchase a third-party insurance policy to drive a vehicle. This type of policy provides coverage for any third-party liability resulting from a road accident.
What Exclusions in Electric Car are not covered
Keep in mind the following exclusions in the optimum insurance for electric vehicles:
- Own Damage:
If the car owner does not have a comprehensive insurance plan, any damages to the electric vehicle will not be covered.
Alcohol-impaired driving is not covered by insurance.
- Driving Without a License
If the driver did not possess a valid license at the time of the accident that caused the damage, the insurer will not provide coverage.
- Consequential Damage:
The insurer will not cover any loss or damage to the electric vehicle that did not occur due to direct contact with another vehicle or object while on the road.
- Intentional Negligence:
If the electric vehicle owner intentionally ignores the damage to their car and it gets worse before they decide to get it fixed, the insurer will not provide coverage for the damage. The vehicle owner will have to pay for the repair or replacement out of pocket.
- Lapsed Insurance Plan:
It is crucial to renew the electric vehicle insurance policy on time. If the insurance policy expires, insurers will not provide any type of coverage.
For the optimum car insurance for electric vehicles, get in touch with Shriram General Insurance and buy a policy that provides attractive premiums and hassle-free claims processing. Insure now!
- Electric car insurance is a type of vehicle insurance designed specifically for electric cars.
- Insurance companies have recently started creating exclusive plans for electric vehicles as more of them are now being produced.
- Electric vehicle insurance provides coverage for the unique components of these vehicles, including their batteries and charging infrastructure.
- Electric car insurance typically includes a third-party liability cover, which is mandated by law.
- It is important to check the electric car insurance rates and note that certain exclusions apply in these policies, such as driving without a license, drink-and-drive accidents and intentional negligence.
- How can a policy holder renew their electric car insurance online?
Renewing electric vehicle insurance online is a hassle-free process. One can start by entering their policy number on the insurer's website to access their insurance plan. They can then customise the plan by adding or removing add-ons based on their needs and then clicking on the option to renew the plan. The insurer's website will allow one to make the renewal payment online quickly and conveniently.
- Is it expensive to insure an electric car?
Electric car insurance typically includes coverage for the electric battery and charging unit, which can be expensive to repair or replace in the event of damage or theft. The policy may also include coverage for specialised components that are unique to electric vehicles, such as the regenerative braking system.
- Is it necessary to have a pollution under control (PUC) certificate while driving an electric vehicle?
It is not necessary to carry a pollution under control certificate while driving an electric car since they run on batteries and do not emit harmful gases, unlike traditional cars that run on hydrocarbon-based fuels such as diesel and petrol.
- Does the insurance company send an inspector to assess the damage to the electric car before the claims process starts?
Once a policy holder reports an accident to their insurance provider, the insurer will assign an inspector to evaluate the damage to the electric car and verify that the claim filed is accurate. After the inspector has completed their assessment, the insurance company will initiate the claim process and reimburse the policy holder for the damages.
Make your ride reliable, Insure it now! with Shriram General InsuranceInsure Now
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