Electric Car Insurance: Is it necessary?

Electric vehicles are the future of mobility and their popularity is on the rise in India. As more people opt for these four-wheelers, it becomes even more important to understand their unique insurance coverage requirements. Electric four-wheelers have different components and technologies that require specialised coverage, making it necessary to understand the importance of such coverage.

 

As the world shifts towards more sustainable modes of transportation, electric vehicles are becoming increasingly popular. With their eco-friendliness and cost-effectiveness, it is  no doubt that more people are buying these electric vehicles. Shriram General Insurance understands the concerns of EV owners and provides insurance coverage that caters to their unique needs. This article will explore whether electric car insurance is a necessity and the various car insurance plans available in India.

 

Importance of Car Insurance for Electric Cars?

As the demand for eco-friendly modes of transportation continues to grow in the wake of increasing concerns about global warming, auto manufacturers are developing various types of electric vehicles to meet the diverse needs of car buyers.

 

In response, reputed insurance companies such as Shriram General Insurance have created vehicle insurance policies specifically for electric four-wheelers.

 

Electric vehicle insurance policies provide financial protection to EV owners against liabilities such as natural calamities, theft of the insured vehicle, accidental damage, riots, fires and third-party injuries or damages to third-party properties.

 

Similar to car insurance policies for petrol and diesel vehicles, choosing the right insurance for electric cars can help their owners avoid out-of-pocket expenses. With the increasing prevalence of EVs in India, owners need to have the proper insurance coverage to protect their vehicles from any damages. This will ensure peace of mind while driving on the road.

 

Is it Necessary to have Electric Vehicle Insurance?

Yes, the rising popularity of EVs in India has been a game-changer for commuters in India. With benefits such as environmentally friendly transportation and lower fuel costs, these vehicles are rapidly gaining ground in the country.

 

However, advanced technology in EVs translates to higher repair costs, making electric vehicle insurance necessary. Here are the top reasons why electric vehicle insurance is essential:

• Legal Requirement: The Motor Vehicles Act of 1988 mandates that all vehicles must have insurance coverage to be driven legally on Indian roads. Failure to comply with this law can result in heavy penalties from the traffic police.

• Third-Party Liability: By having third-party liability cover, EV owners can protect themselves from financial and legal liabilities in case of damages caused to third-party persons or properties.

 

• Protection Against Damages: An EV four-wheeler insurance policy can cover repair costs for damages to the insured vehicle, providing financial protection for the owner.

 

• Personal Accident Cover: Electric vehicle insurance policies also provide personal accident coverage for the insured. In the unfortunate event of the policy holder's demise or disability due to an incident involving the insured four-wheeler, the sum assured is paid out to their nominees.

Therefore, it is crucial to consider electric vehicle insurance rates and invest in a policy with comprehensive coverage. Insure now with Shriram Car Insurance for optimum protection.

 

Types of Insurance for Electric Vehicles

To ensure their EV is properly protected, four-wheeler owners should select optimum insurance for electric vehicles. There are two types of policy to consider:

Third-Party Insurance: This type of policy is required for all EV owners as per the Motor

Vehicles Act of 1988. It covers liabilities arising from third-party injuries or property damage caused by the insured EV. However, it is essential to note that accidental damages to the insured vehicle are not covered by a third-party policy.

 

Comprehensive Insurance: This is the ideal insurance for electric vehicles as it provides both third-party and own damage coverage. It also covers repair costs for damages caused by riots, floods, storms and other calamities as per the terms and conditions specified.

Steps to Purchase Electric Car Insurance Online

To purchase EV insurance online, individuals can follow the steps outlined below:

Step 1: Visit the official website at https://www.shriramgi.com/

Step 2: Enter the registration number of the EV or select it from the car selector option provided.

Step 3: Select the variant type of the EV and provide some necessary personal and previous

policy details 

Step 4: Choose an insurance plan and optional add-on covers that cater to one's specific requirements.

Step 5: Pay the premium online and receive the policy in your email inbox instantly

 

Coverage Under Electric Vehicle Insurance

Inclusions	Exclusions
Losses due to the theft of the vehicle and injuries or damages to third-party persons or property	Accidents caused when driving without a valid driving license
Losses due to man-made disasters such as riots	Regular wear and tear of vehicle components
Losses due to natural disasters such as earthquakes and floods and damages to the insured vehicle in an accident	Accidents caused when driving under the influence of alcohol or other intoxicants
Accidental demise or injury of the owner-driver	Accidents caused by reckless driving
Damage to the vehicle in a fire or explosion	Damages caused by electrical or mechanical failures

 

Selecting the Ideal Insurance for Electric Cars

• Opt for an electric vehicle insurance plan with comprehensive coverage at an affordable price.
• Explore reputed insurance providers such as Shriram General Insurance, which has hassle-free claim settlements and almost zero paperwork.
• Compare various policies to choose the ideal option with the right balance between premium rates, coverage and additional services.
• Carefully review the terms and conditions before finalising an EV insurance plan.
• Read electric vehicle insurance reviews online to gain further insights into which plan to buy.

 

Buy the Perfect Insurance for Electric Cars

It must be clear by now that electric vehicles need insurance just like any other type of vehicle on the road. It is crucial to have a good understanding of the coverage options and to compare policies to choose the right one that fits one's needs and budget.

 

This comprehensive guide provides readers with valuable insights on insurance for electric cars, including the average insurance costs and guidelines for selecting the ideal policy. So why wait? Act now and get the optimum insurance for electric vehicles with Shriram General Insurance!

Shriram Car Insurance received the award for the best claim settlements in 2022. Policy holders can remain assured that their EV is comprehensively protected.

 

Key Highlights

• Explore reputed insurance providers such as Shriram General Insurance, which has hassle-free claim settlements and almost zero paperwork
• To ensure their EV is properly protected, four-wheeler owners should select optimum insurance for electric vehicles
• When buying a policy for electric car insurance, one should consider certain factors such as customer support reviews of the claim settlement process provided by the insurer as well as their overall reputation and more.
• It is crucial to have a good understanding of the coverage options and to compare policies to choose the right one that fits one's needs and budget.

 

FAQs

1. Why is insurance for EV cars so expensive?

Due to their advanced technology and features, electric vehicles (EVs) are generally more expensive than traditional gasoline or diesel cars. As a result, insurance premiums for EVs tend to be higher as these are largely based on the value of the vehicle.

 
2. Are electric cars less expensive to insure?

The use of lithium-ion batteries in electric vehicles contributes to their high manufacturing costs. As a result, the insured declared value in electric four-wheeler insurance policies also increases, leading to higher premium rates when compared to those for cars with petrol/diesel engines.

 
3. Is insurance mandatory for an electric vehicle?

According to Indian law, it is mandatory for all vehicles, including those powered by petrol, diesel, compressed natural gas (CNG) and electricity, to be insured with at least a third-party policy. Failure to do so can result in financial and legal liabilities. However, a third-party policy only covers damages to third-party persons and properties and not the insured car or the policy holder.

 
4. How can one find the right insurance company for an electric vehicle?

When buying a policy for electric car insurance, one should consider certain factors such as customer support reviews of the claim settlement process provided by the insurer as well as their overall reputation and more. Reputed insurance companies such as Shriram General Insurance provide an almost paperless claim settlement process and affordable premium payments on a user-friendly digital platform.