The primary factors for someone to buy an electric automobile are its cost-effectiveness, environmental friendliness and ev policy in India. But when buying insurance for electric vehicles, the premium price goes up significantly. An electric car’s increased insurance rate is largely owing to the costlier repairs required to maintain such vehicles due to their superior technology.
Electric vehicles may also sustain significant damage due to their small weight. All of these and many more factors immediately increase the insurer’s responsibility, which causes them to raise the cost of EV insurance, making it expensive.
Reasons Behind The Increased Cost Of EV Insurance
The cost of buying electric car insurance in India is greater for a number of additional reasons. Here are a few examples for you to take a look at:
- Costly electric vehicles
Electric motors, battery packs, and transmission modes are used in electric-powered vehicles. The cost of manufacturing an EV is increased by the battery pack, which is the most expensive of these components. Since these batteries are lithium-ion, electric vehicles are more expensive than conventional vehicles on the market.
As a result, the insured stated value of electric bike insurance also rises, raising the cost of the premiums and making it more expensive.
- Replacement of car batteries
Powerful batteries that have a set lifespan power electric autos. Before they quit functioning correctly, the automobile owner needs to replace the battery. Powered by lithium-ion batteries, electric vehicles. These lithium-ion batteries are expensive to replace.
The car owner would not need to replace the batteries regularly if the lithium-ion battery had a long life. The insurer’s obligation decreases as replacement frequency decreases This will lower the third-party electric vehicle insurance policy’s premium costs. ##
- High maintenance
The cost and upkeep of electric vehicles are higher. It’s because an electric automobile has intricate and pricey auto parts. As a result, servicing or repairing broken parts on an e-car takes advanced knowledge.
Since there are fewer owners of electric cars in India than there are of conventional cars, there are also fewer mechanics. A competent e-car mechanic charges more than a typical vehicle mechanic, so the labour cost of maintaining and repairing an electric automobile is considerable. In turn, this raises the price of electric vehicle insurance.
Cost of EV Third-Party Insurance In India
The Insurance Regulatory and Development Authority of India (IRDAI) sets the premium costs for third-party liability insurance. The third-party liability insurance premium rates have been set at a 15% concession by the IRDAI compared to petrol/diesel engine vehicles to promote the use of electric vehicles in the nation. #
With rising fuel prices and pollution, electric vehicles appear to be displacing petrol and diesel-powered vehicles in India over the next few years. Since buying an electric bike insurance policy online is advised, you can use an insurance premium calculator to determine the premium costs of the policy and select the best option for your electric vehicle.
# Visit the official website of IRDAI for further details.
## All savings are provided by the insurer as per the IRDAI-approved insurance plan. Standard T&C apply
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.