Factors Influencing Insurance Premiums of Electric Cars

Posted on: Oct 1, 2024 | 3 mins | Written by: HDFC ERGO Team

Factors Influencing Insurance Premiums of Electric Cars

Some important factors influence car insurance costs in India. Among them is the make and model number of the vehicle. If you have an electric car, the insurance costs will be higher than that of a regular vehicle. Why does this happen, and how can you lower your comprehensive car insurance costs? Read on to get the answers.

1. Cost of the vehicle

One of the most important factors determining the cost of any car insurance policy is the cost of the vehicle. It is common knowledge that an EV costs more than a fuel car. This is why the electric car insurance rate is higher than a regular car insurance rate. You have to keep this very important factor in mind, as it forms the starting point of your car insurance shopping.

2. Value of the battery

Another determining factor is the cost of the vehicle’s battery. An electric vehicle is powered by its battery and hence, the battery is very powerful and valuable. The cost of an EV’s battery is significantly higher than a regular vehicle’s battery. Taking this into consideration, the insurance providers attach a higher rate to an EV insurance plan. As a result, you see the figures to be higher when you run an electric car insurance comparison. However, the battery of your EV requires a lot of care and support, so ensure you have the best possible car insurance plan that helps you to care for the battery in the best possible manner.

3. Need for special technicians (repairmen)

Next, the cost of specialised repairmen needs to be factored in. Not every mechanic working in every garage in India knows how to cater to an electric vehicle. EVs are relatively new, and the technology is quite modern. Hence, only skilled and highly trained mechanics can repair an electric vehicle. These workers charge a higher rate for their expertise, another reason comprehensive car insurance costs are usually higher. The insurer factors in the higher repair costs and, therefore, attaches a higher premium to cover their risks. Therefore, when you see the premium rate, you will notice it to be a bit steeper than usual.

4. Advanced features

Similarly, the electric vehicle you have has some very advanced features. A lot of the accessories are also imported. If they require repair or replacement, you have to shell out quite a bit of money. This makes the car insurance premium rate higher. When you compare car insurance online, you find the rates of the fuel cars of the same model to be lower but the premium rates of the electric vehicles to be higher.

These are some of the most logical reasons that tell you why an electric vehicle is more expensive to insure. However, the EV car insurance plans available in India are very well-rounded and offer some excellent features. You can find some great options at some great rates.

Tips to get the best premium rate

As mentioned above, leading Indian insurance providers like HDFC Ergo sell some very useful electric vehicle insurance plans.

1. Look for the best plan.

It helps to undertake a car insurance quote comparison. You can look for different plans that have different rates. Visit the website of a reliable insurance provider like HDFC Ergo and browse through the options. You can compare among the available plans and choose an option that suits you well. You can also compare the add-on covers and determine which ones you need. Remember, the higher the number of riders, the more your plan will cost. So, choose only the riders you require and get a well-priced policy.

2. Customise carefully

As stated. You can customise your motor insurance policy by adding riders. You can add or drop riders when you buy or renew the plan. If you feel a certain rider is redundant, drop it and only keep the ones that deliver. The common EV riders include roadside assistance and engine protection, among others. You can also customise your plan based on the policy tenure.

Choose a long-term policy that proves to be cost-effective in the long run. These minor changes can work in your favour and reduce your comprehensive car insurance liability. Remember, you need a plan with a reasonable premium to pay off comfortably. Else, you may lose your coverage. However, opting for a third party car insurance plan may not be a wise decision as it provides coverage only for third-party legal liabilities, leaving your vehicle unprotected!

3. Install safety features

Last but not least, install some safety features in your vehicle. You need to get anti-theft devices, advanced locking systems, etc. When a car is safe, the risk of it getting stolen is reduced. The insurer takes cognisance of this and reduces the car insurance premium, as the risk of insuring the vehicle reduces as well. There are some advanced safety gadgets available, many of which are already installed in the modern-day EVs. See what else you can add to not just lower the car insurance costs but also to keep your precious vehicle safe and protected even further.

While it is valid for you to look for an affordable option, do not solely look at the price of the policy when you compare electric car insurance. Also, look at the features and the reputation of the insurance provider to ensure you have the most comprehensive protection.

To wrap it up

As you can see, there are some simple ways to reduce the car insurance quotes for your EV. However, ensure you have the best plan at the best rate without making any compromises or adjustments. Keep the tips mentioned above and look for plans from the best insurers like HDFC Ergo. It helps to associate with a good insurer as apart from the comprehensive car insurance coverage, you also get excellent support and quick claim settlement, which makes your insurance journey smooth.

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

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