Dos and Don’ts of Electric Vehicle Insurance

Posted on: Aug 2, 2023 | | Written by:

Dos and Don’ts of Electric Vehicle Insurance

Published on July 31, 2023. EST READ TIME: 3 minutes

There is a massive uptick in the sales of electric vehicles in the country. And it correlates to the rising demand and popularity of electric vehicles at the same time. EVs are popular for their no emissions and for lowering the running costs of cars. And most importantly, not it eliminates the need to visit petrol stations to refill the fuel tank. Like any other vehicle out there, you will need electric vehicle insurance to drive your EV.

Understanding electric vehicle insurance

Growing pollution levels have been a concern for governments and vehicle manufacturers alike. There was a strong need for vehicle manufacturers to either adopt alternate fuels or come up with better electric vehicles. And these are a couple of strong reasons why the number of electric vehicles in the country is on the rise.

Electric vehicle insurance is similar to a standard car insurance policy that is available for petrol and diesel based cars. Electric vehicle insurance offers protection to your electric vehicles against common perils such as natural calamities, accidents, theft, vandalism, etc. A good EV plan will make sure that you do not end up paying anything from your pockets during a claim.

Perks of opting for electric vehicle insurance

Buying electric car insurance for your EV offers quite a few benefits. Here are some of the more prominent reasons to choose EV insurance.

1. Third party liability

In the unfortunate event of an accident, where other individuals or vehicles are involved, a third party liability policy can be a life saver. The plan will ensure that any damages or injuries to third parties are taken care of by your insurance provider. You will also receive legal assistance as a part of the coverage.

2. Personal accident cover

A personal accident cover along with electric car insurance is another benefit of buying the plan. In an unfortunate severe accident, a car owner might get disabilities or even lose their life. In such cases, the personal accident cover can be quite useful. The plan will offer financial compensation to the insured or the nominees of the insured. The only thing to keep in mind is that you need to opt for this cover separately with a third party liability policy or a comprehensive plan.

3. Law abiding citizen

Irrespective of which plan you choose; you must have one active electric car insurance policy since the law mandates it. The Motor Vehicles Act of 1988, requires all vehicle owners to have insurance on them. And if a vehicle owner fails to do so, a hefty penalty awaits them. To avoid paying any unwanted penalties, it is recommended that you opt for a policy.

4. Forgo hefty repair bills

Like any other car, an electric car is also vulnerable to incidents and accidents. If your car meets with any such incidents, the onus of paying for the expenses lies on you. Not unless you opt for comprehensive insurance or own damage insurance for your electric car. The coverage will ensure that your insurance provider settles the repair bills without you having to pay from your pockets.

List of Dos for electric vehicle insurance

Here are some things that you must do if you have an electric vehicle.

1. Opt for a comprehensive insurance policy for the car for better coverage.

2. During the monsoon season, car owners must take additional care of their electric vehicles. choosing a policy with adequate coverage against damage to the batteries or protection against fire is highly recommended.

3. Car owners must also explore add-ons for specific coverage for even stronger protection. Add-ons such as zero depreciation cost must be considered for an electric vehicle. Should you have the add-on, your insurance provider will not deduct the cost of depreciation from the claim amount. Thus, ensuring that you do not pay anything from your pockets.

4. Roadside assistance is another useful add-on to have for electric vehicles. If your electric vehicle breaks down somewhere or runs out of charge, you can inform your insurance provider and they will assist you. If your car needs to be towed away to the nearest garage, your insurance provider will facilitate the same.

List of Don’ts for electric vehicle insurance

Here are a few things that you must avoid if you have an electric vehicle.

1. Drive the car without valid electric car insurance since it is illegal to do so. And you will end up paying hefty fines to the traffic police department for the offence.

2. Car owners should not rely completely on a third party liability policy. They must explore comprehensive electric vehicle insurance for their cars. It will allow them to drive their cars with a lot of confidence, without constantly worrying about expenses, should something unforeseen take place.

3. One should not look for the most affordable policy available in the market. Even if it is comprehensive insurance, do not forget to look at the IDV being offered. A lower IDV or insured declared value will translate to a lower policy premium. On the other hand, it will also result in lower compensation in the event of a total loss.

The presence of an electric car insurance policy will make way for a more enjoyable ownership experience that does not have any hassles. And at the same time, make sure that your finances are well protected, and that you have the necessary legal coverage as well.

Conclusion

Owning an electric vehicle can be quite fascinating. It is a simple yet effective way of reducing your recurring carbon footprint. To safeguard your investment, it is recommended to opt for comprehensive insurance for your car. It will protect you, your car, and your finances from unforeseen circumstances.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to policy wordings and prospectus before concluding the sales.

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