How Can I Save Money on Electric Car Insurance?

Cost-effective maintenance and a more environmentally friendly footprint compared to their petrol/diesel counterparts attract many buyers toward electric vehicles. Once you have purchased an electric car and are in the process of choosing electric car insurance, you will come across an important question. Are there any ways to reduce EV insurance costs? What will be covered under electric car insurance? Keep reading to get answers to these queries:

 

Strategies to Cut Cost on Electric Car Insurance

It is more important to make an informed choice than going for the costliest policy. Here are some ways to reduce EV insurance costs while also ensuring your electric vehicle (EV) is well-protected:

 

1. The Convenience of Online Insurance

Considering buying your car insurance online is a smart choice. Online, you can easily compare different policies and find the coverage that is most suitable for your electric car. This helps you save time and money.

 

2. Voluntary Deductible Improves Savings

A "voluntary deductible" is an amount that you agree to pay from your own pocket during claims. By selecting a voluntary deductible, you can reduce your insurance premium by a specific percentage. If you are a responsible driver and your electric car is relatively new, the chances of filing a claim are minimal. In such cases, it is worth considering car insurance with a voluntary deductible, which improves saving on electric vehicle insurance.

 

3. Installing Security Devices

The installation of security devices, like anti-theft mechanisms and safety locks, not only improves your EV's security but also decreases the risk of theft. Insurers consider this as a positive step and may offer reduced car insurance renewal premiums for electric cars that have anti-theft devices.

 

4. Make use of the No-Claim Bonus

Responsible driving comes with many advantages. Insurance companies extend a "No-Claim Bonus" to policyholders who don't file claims. If you are a cautious driver who maintains and cares well for EVs, the chances of making claims remain low. So, you have the opportunity to enjoy a no-claim bonus for each claim-free year. Accumulating these bonuses can significantly lower premiums for your EV.

 

5. Compare and Analyze

Periodically reviewing your insurance options is important. The insurance landscape evolves, and better deals might emerge over time. Compare policies, analyze their coverage and benefits, and be prepared to switch if more cost-effective and suitable options are there.

 

Coverage under Electric Car Insurance

Electric car insurance provides coverage to protect you in various situations. Understanding what is included in your electric car insurance is important in safeguarding your investment. Here is a look at what electric car insurance covers:

 

1. Accidents

Accidents can happen to anyone on the road, no matter what type of vehicle you use. Electric car insurance steps in to help you when your electric car gets damaged due to collisions or accidents. The insurance policy helps to cover the repair costs and makes sure that your electric car gets back on the road.

 

2. Fire

Accidental fires can cause significant damage to your electric car. Electric car insurance offers coverage for the losses or damages that are caused due to unforeseen fires. This ensures that you are financially protected if your electric car gets accidental fires.

 

3. Natural Calamities

Unpredictable natural calamities, such as floods, earthquakes, and cyclones, can cause damage to your electric car. With electric car insurance, you will get a safety net against such natural calamities. If your electric car is damaged due to these events, your insurance policy will extend coverage to help in repairs and restoration.

 

4. Theft

Losing your electric car to theft is a distressing situation. Electric car insurance helps to reduce the financial burden associated with such unfortunate theft. If your electric car is stolen, your insurance coverage helps you recover the financial losses.

 

5. Third-Party Losses

Accidents can involve not only your own vehicle but also other individuals and their property. Electric car insurance provides coverage for third-party losses and damages. This means if you are responsible for an accident that causes damages to opposite party's vehicle your insurance policy will help to cover the costs.

 

6. Personal Accident

Car accidents can have serious consequences, including injuries or even death. If a car accident leads to injury or disability, electric car insurance provides coverage. This provision ensures that you and your family get financial support during difficult times.

 

7. Additional Benefits

Beyond these core coverages, electric car insurance can offer additional benefits and optional add-ons. These could include roadside assistance, which provides help in case of breakdowns or emergencies, and more.

 

Information Required to Insure Your EV

The insurance company will ask you for information about the car when you apply insurance for your EV. Regular cars and electric vehicles usually go through the same insurance process. Here are a few car-related questions that insurance companies commonly ask:

 

• Your EV's make and model
• The year of manufacture of your vehicle
• The insurance applicant's previous policy details
• Whether the car will be used for business or for personal use

 

You might be asked additional questions like the location, etc., and it varies for different insurance providers.

 

Final Thoughts

Electric vehicles are growing in popularity with consumers. Costs associated with buying, owning, and maintaining EVs are likely to decline over time with ongoing developments in the automotive sector. By understanding the ways to reduce EV insurance costs mentioned above, you can ensure that you are making a well-informed decision that meets your needs and budget.

 

FAQs

1. Is insurance mandatory for electric cars?

Yes, as mandated by the Motor Vehicles Act of 1988, at least third-party insurance is necessary for electric cars.

 

2. Will insurance cover the EV battery?

Different manufacturers quote different life spans for their EV vehicle batteries, so EV batteries are not covered under Electric Car Insurance.

 

3. Does the price of insurance for electric vehicles differ from petrol or diesel vehicles?

Insurance for electric vehicles tends to be slightly more expensive than coverage for petrol or diesel cars. This is due to higher vehicle costs and costly repair parts.