This article will provide you the knowledge, importance, benefits and other significant details of the Insurance of Electric Vehicles.
With the development of new and advanced technologies in the Electric Vehicle sector, automobile companies are tempting people to go for it. Many features of electric vehicles, such as lower running costs, reduced air and noise pollution, government funding, lower running costs, etc., provide benefits to individuals, and they are opting for them.
Gradually, the demand for EVs is picking up pace in India. Apart from providing a green environment, they are cheaper than gasoline vehicles. The government is also offering incentives for buying these vehicles. The increasing number of electric cars shows that there will be a rise in the insurance of electric vehicles too.
What is an Insurance of Electric Vehicles
Electric car insurance provides financial protection or reimbursement against the loss. It provides protection for your vehicle against fire, accidental damage, theft, natural calamities, etc. To legally drive a car on the road, it is mandatory to have third-party insurance. Third-party insurance is cheaper than comprehensive insurance. The premium amount is pre-determined by IRDAI (Insurance Regulatory and Development Authority of India), and it is the same all over India. Choosing the right insurance of electric vehicles can save you money on out-of-pocket expenses.
What Is The Importance Of Insurance Of Electric Vehicles?
If there is any damage to your car and it is not insured, it will burn a hole in your pocket, but if your car is insured, it will not affect your pocket. Its main purpose is to reduce financial uncertainty. A fixed payment that is known as ‘premium’ is to be deposited either monthly, quarterly, or yearly, depending on the policy that you have taken, and a professional insurer promises to pay the amount if any loss or damage occurs.
Plans for the Insurance of Electric Vehicles in India
There are mainly two types of insurance plans available in the market for the Insurance of Electric Vehicles:
- Third-Party Car Insurance Policy
- Comprehensive Car Insurance Policy
1. Third-Party Car Insurance Policy:
Through this insurance policy, if a third-party vehicle gets damaged or is hurt by your electric vehicle, on your behalf, the insurer will pay him. Damage to your own vehicle is not covered by this policy.
2. Comprehensive Car Insurance Policy:
This policy is better than the third-party policy for your electric vehicle. It includes both third-party insurance and your own damage.
To learn more about third-party insurance and comprehensive insurance, click here
What Are The Benefits Of Buying Insurance of Electric Vehicles?
Buying an electric vehicle exhibits that you are already contributing to protecting the environment from harmful gases, so protecting yourself from any damage also becomes more important. Here are some advantages of purchasing Insurance of Electric Vehicles:
- Financial Protection
- Relaxation Or Peace Of Mind
- Quick Recovery Of Damaged Car
- Compliance With The Rule
- Enhanced Insurance Coverage
- 24×7 Assistance Service
Now lets briefly discuss the above benefits of purchasing Insurance of Electric Vehicles:
1. Financial Protection:
Financial safety is one of the important benefits of taking out electric car insurance. If there is any destruction or loss to the car, the insurer will pay you the amount.
2. Relaxation Or Peace Of Mind:
Once you buy a car; its insurance gives you peace of mind if something wrong happens to it, you do not need to worry a lot about it.
3. Quick Recovery Of Damaged Car:
If your car is insured, there is a quick recovery of your damaged car (either by a natural disaster, i.e., an earthquake, floods, etc., or a man-made disaster, such as riots, strikes, etc.). Although you need to complete and submit the paper work, the process goes on further. When you do not have the money to repair your vehicles, this insurance saves you.
4. Compliance With The Rule:
According to the Motor Vehicles Act, which was passed in 1939 and amended in 1988, all motor vehicles running on the road should be insured. Keeping your electric vehicle insured can be safer.
5. Enhanced Insurance Coverage:
If you are driving a car and you hit someone and that person got injured, and if you have taken third-party insurance, then on your behalf, the company gives the insurance amount to that injured person. When there is a combination of third-party insurance and own damage insurance, that is known as comprehensive insurance.
Whatever damage occurs to our car, that comes under our own damage insurance. Comprehensive insurance includes more coverage than third-party insurance. You can enhance the coverage by adding ‘add-ons’ to your car insurance. It gives additional coverage, like protecting your vehicle from depreciation value, etc., but for this, the policyholder is supposed to pay an extra premium.
6. 24×7 Assistance Service:
If you raise a claim for your loss or damage, the insurance company is available 24×7.
What Is Covered Under Insurance of Electric Vehicles?
Like the fuel vehicle, an electric vehicle insurance policy is also available. Before buying EV insurance, you must be aware of the inclusion and exclusion policies. Although it depends on which policy you have taken, there are some common coverages under insurance of electric vehicles, which are given below:
- Accidents Or Unpredictable Situations
- Stolen Vehicle
- Repair And Replacement Policy For Damaged Vehicles
- Fire In The Car
- Natural Calamities Like Typhoons And Cyclones
- Personal Losses
- Third-Party Insurance
- Avoid Expensive Bills
Now we will discuss the above coverages for insurance of electric vehicles in detail:
1. Accidents Or Unpredictable Situations:
The insurer will pay the amount if the car meets with an accident. Compensation will be provided if the car owner suffers serious injury, disability, or death because of a road accident, collision, or any other unpredictable situation.
2. Stolen Vehicle:
As soon as the demand for electric vehicles increases, there is a chance of your vehicle getting stolen. This unfortunate incident can occur at a parking space or any other location, and electric vehicle insurance reimburses for such losses.
3. Repair And Replacement Policy For Damaged Vehicles:
With the increasing number of vehicles in traffic, accidents now usually occur. A policyholder can manage a small dent in the car, but what happens when losses occur beyond repair? It means that in the case of a complete loss, your car should have a comprehensive insurance policy, as it covers the complete loss and provides compensation to the policy holder if the electric vehicle is damaged to such an extent that it cannot be repaired.
4. Fire In The Car:
There might be many reasons for the malfunctioning of electric vehicles, such as mechanical faults, short circuits, etc. An electric vehicle insurance policy covers them and provides financial relief to the policyholder. If your car gets burned, it is covered under the total loss portion of the electric vehicle insurance policy.
5. Natural Calamities Like Typhoons And Cyclones:
A commercial vehicle travels everywhere, so there are more chances to get stuck in a cyclone, typhoon, hurricane, flood, earthquake, hailstorm, etc. Natural calamities destroy not only human life but also the transport medium. An electric goods vehicle and passenger-carrying vehicles are covered under the electric vehicle insurance policy.
6. Personal Losses:
Since dedicated drivers run commercial vehicles, ensuring their safety is essential. An accidental policy safeguards the drivers from vehicle injuries or disabilities.
7. Third-Party Insurance:
No vehicle can run on the road without third-party insurance. Everyone should abide by the rules. If any third person is injured because of your vehicle (electric or traditional), third-party insurance covers it. There is no limit on the coverage of injuries, but the property damage of third parties is restricted to 7.5 lakhs.
8. Avoid Expensive Bills:
When you have Comprehensive Insurance, it offers Own Damage (OD) too, and this insurance protects us from paying expensive bills as Own Damage covers the major part of damaged electric vehicles.
Things To Avoid While Claiming Insurance of Electric Vehicles
The insurer will not provide any coverage for your own damage if you have not taken a comprehensive insurance policy. Driving a car under the influence of alcohol is not covered by insurance. To get your policy renewed is important to make a claim. No reimbursement will be provided if your insurance policy is expired or you are driving without a license. If your electric car gets damaged and you intentionally ignore it for some time without any reason, then its condition becomes worse, and now if you claim damage coverage, the insurer will not provide it.
Points To Remember To Choose The Right Insurance of Electric Vehicles
Buying an insurance policy is not a piece of cake, as there are several companies that provide insurance policies and prove themselves better than others. So, you have a plethora of options, but you should remember the given tips to buy the right insurance policy:
- Offer Wide Coverage
- Check out the Premium and Other Fees
- Check The Claim Settlement Ratio
- Read Terms And Conditions Thoroughly
Now let us discuss the above points one by one
1. Offer Wide Coverage
You should choose that electric vehicle insurance policy that offers maximum coverage at a minimum price.
2. Check Out The Premium And Other Fees
Like other things, cost-effectiveness also matters. You should check the premium, administration, and management fees. If you find similarities between two or more insurance policies, compare them, and then find out which one is best suited to you. Nowadays, you will find several online websites that will help you find the best and most cost-effective insurance policy.
3. Check The Claim Settlement Ratio
The main aim of purchasing insurance is to ensure that your loved ones do not face financial hassle. You should check the ratio of claim settlements. If the ratio is high, the insurer is considered trustworthy.
4. Read Terms And Conditions Thoroughly
Once you have decided to take electric vehicle insurance, you are supposed to read the terms and conditions thoroughly to know the depth of the policy.
Conclusion
In a nutshell, there are many companies, such as Bajaj Allianz, ACKO, etc., that provide insurance for electric vehicles. Transport is the upmost requirement of modern life. In terms of modes of transport, electric vehicles are ‘in’ and traditional vehicles are becoming outdated. Because of their zero tailpipe emissions, EVs are becoming the first choice of many people.
If you are already part of ‘EV’, congratulations on your contribution to a cleaner environment; if not, go ahead. EV insurance is the most important and an ineradicable part of life. Choosing the right insurance for an EV cuts down many problems and offers many more. Make sure that everything is covered under the EV insurance that you are planning.
