Guide to Get Car Insurance for Your Electric Vehicle
The future is electric. With soaring fuel rate not just in India, but also globally, it is essential to look for alternative ways to power vehicles. Moreover, the non-renewable sources of energy are depleting at a faster rate than ever and hence it is critical to look for alternative means to fuel. Barry operated vehicles or as popular known by electric vehicles will soon replace the internal combustion engines. But at present, the technology is in a nascent stage. The infrastructure is developing but has a promising future. Hence, it is the right time to buy an electric vehicle if your want to future-proof your purchase.
Just like a fuel-based car, electric vehicles are required to purchase an insurance cover. This article lays down a complete guide to buy car insurance online for electric vehicles.
The Motor Vehicles Act makes it mandatory for all vehicles registered in the country to have a vehicle insurance cover. This includes IC engines as well as electric vehicles. Hence, all electric cars owners are also mandatorily required to buy an insurance cover. When you are searching for an insurance plan for an electric car, you have two options to choose from—a third-party cover or a comprehensive policy.
A third party car insurance is the bare minimum that you need to have whereas comprehensive policy is an optional upgrade. The regulator, Insurance Regulatory and Development Authority of India (IRDAI) determines the premium for such third-party plans. To promote insurance coverage for electric cars, it has marked down the third-party premiums by 15 percent compared to rates standard fuel-operated private cars of similar categories. You can visit the official website of IRDAI for further details.
Third-party policies offer dual benefits—one, a legal compliance, and the second, coverage for liabilities. Not having a car insurance plan attracts hefty penalties and even imprisonment for repeated offence. The policy also covers legal liabilities that can be due to an accident injuring a third-person or causing property damage. *
Contrary to third-party plans, comprehensive policies not just include third-party coverage, but also coverage for own damages. The own-damage cover along with third-party coverage helps safeguard against damages that might be faced by your car. Hence, it offers a 360-degree protection insuring against legal liabilities as well as damages to your car.
Since electric cars are expensive considering the complex technology used to power the vehicle, its repair costs are substantially higher. Instead of the traditional cubic capacity that plays a significant role in determining the premium, the kilowatt (KW) of your vehicle replaces this factor. *
Here are some factors to consider when buying an insurance plan for electric vehicles:
IDV or Insured Declared Value: IDV is the maximum amount that the insurance company pays for a situation of total loss or theft. Hence, selecting the right IDV is crucial. *
Claim settlement ratio: It is that percentage of the claims settled in comparison to the claim applications received. The higher the claim settlement ratio, the better it is. *
Add-on features: Add-ons are optional policy features that can be bought in addition to the comprehensive insurance cover. Since these features are in addition to the base insurance plan, it impacts the premiums. Using a car insurance calculator, you can compute the premium before finalising on any. *
* Standard T&C Apply
As a car insurance policy is mandatory for your electric car, ensure you take full advantage of the coverage offered by your insurance plan. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.