EV Insurance: Tips to comprehensively insure your electric vehicle in the coming new year
Insurance for Eelectric Vehicles (EVs): Electric vehicles are advanced pieces of machinery that need protection exceeding third-party liability insurance. Thus, a comprehensive insurance plan is more fitting as it completely shields the insured vehicle from various risks, particularly beyond damages and losses caused due to incidents other than a collision.
Insurance for Electric Vehicles in India: Electric vehicles, or EVs as they are commonly known, have undoubtedly dominated 2022. If the industry buzz is anything to go by, the EV fascination looks like it’s here to stay even in the year to come. The industry reports project an impressive 40-49 per cent CAGR growth rate for the Indian EV market. The remarkable uptick in recent EV sales clearly indicates the growing popularity of this environmentally-friendly mode of transport as the future of mobility.
As a result, if you currently drive an EV or are thinking about switching to one, you should first know that electric vehicle, whether hybrid or fully electric, requires a motor insurance policy, just like regular vehicles do. Since there is no specialized policy yet for them, these get covered under the same law that mandates all vehicles to be insured under third-party liability insurance. This policy shields the insurer against any third-party damage to property or bodily injury caused by the vehicle. But, for EVs, the insurance costs vary from a standard policy. Thus, IRDAI has directed a 15 per cent discount on third-party insurance coverage for EVs to ensure absolute protection. Here’s how to comprehensively insure your EV –
Electric vehicles are advanced pieces of machinery that need protection exceeding third-party liability insurance. Thus, a comprehensive insurance plan is more fitting as it completely shields the insured vehicle from various risks, particularly beyond damages and losses caused due to incidents other than a collision. These include accidents, fires, and natural calamities like earthquakes, floods, etc. Furthermore, it also shields against the cost of EV spare parts and their replacement, repair, and servicing costs, which can be exorbitant if borne out of pocket. Therefore, comprehensive insurance is ideal for EV owners for maximum financial protection and safety.
So, here are the tips for comprehensively insuring your electric car:
The maximum sum assured fixed offered by an insurance company in the case of a complete loss or theft is known as Insured Declared Value, or IDV. Hence, it is essential to have an appropriate IDV set when purchasing the policy. However, in the case of comprehensive policies, the IDV is mainly limited to a predetermined policy limit. Thus, it is critical to insure your electric vehicle adequately, or you will face a financial burden in the event of theft or damage that cannot be repaired.
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