May 17, 2024
How Motor Insurance Premium Varies For Electric Vehicles Vs Fuel-Based Vehicles

How Motor Insurance Premium Varies For Electric Vehicles Vs Fuel-Based Vehicles

Green mobility is mostly determined by electric vehicles     (EVs). Over the years, EVs have gained more popularity due to their affordability and sustainability.However, adopting EVs is not without its limitations and uncertainties. Whether electric car insurance and fuel-based vehicles are different is a frequently asked subject. EVs are not an exception to the rule since automobile insurance is required by law. Thus, it is important to understand insurance jargon. The details of how your premium varies for both types of automobiles are provided below.

Does The Engine You Choose to Affect The Premium You Pay?

Yes. The brand of the engine directly affects the premium. Higher cubic capacity fuel-powered vehicles will have higher third-party rates than vehicles with lower capacities. But internal combustion engines are absent from EVs. They have an engine that is an electric motor. Because of this, the same cubic capacity classification is irrelevant. So, how is the EV premium calculated? The determining criteria for EV premium are kW or kilowatts rather than cubic centimetres.

Is EV Insurance More Expensive?

The solution is not so simple. Let’s discuss this.

Concession On Premium: Third-party electric bike insurance is legally required for both fuel-based and electric vehicles. The IRDAI has offered a 15% concession on the price of vehicle insurance for EVs, which is the only difference to encourage green mobility through EVs.

Higher Maintenance: EVs are sophisticated when it comes to full electric car insurance coverage. For instance, the battery is the most important component of an EV, and it will eventually need to be replaced. Additionally, because there is a wealth of information available, insurers are better able to estimate risk when it comes to fuel-based vehicles. However, because EVs are a relatively new idea, risk profiling still has a way to go. Premiums are anticipated to level out and decrease over time as the industry continues to advance.

How Are You Able To Increase The Protection Of Your EV?

EVs are sophisticated pieces of equipment. They require a skilled specialist to fix the damages, particularly in the interior areas of the automobile, so you can’t get them fixed at every other local garage. One must choose add-ons like roadside assistance coverage and a comprehensive policy to avoid any unfortunate situation. The insured greatly benefits from zero depreciation coverage, given the nature of the machinery. Choose a battery protection add-on to protect your EV in the event of battery damage. These covers will supplement your insurance and give your EV an additional layer of preventive protection. You might further reduce your premium by researching various insurance policies online and even purchasing there.

A vehicle insurance calculator is a simple and easy-to-use tool you may use online to determine the amount of coverage required based on your needs.

Standard T&C Apply

Visit the official website of IRDAI for further details.

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.

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