Know Why Car Insurance for Electric Vehicles Will Cost More

Electric vehicles are an innovation that has brought about a revolution in the entire world. Electric vehicles have electric motor instead of an internal combustion engine and use motor controllers for propulsion. Electric vehicles include electric trains, electric airplanes, electric lorries, electric boats, electric cars, etc.

Electric vehicles have an ability to recover the braking energy as electricity is to be restored to the on-board battery or it is sent back to the electric grid present within the vehicle. They tend to reduce pollution in the city significantly by having zero tailpipe emissions. Electric vehicles are noiseless, and they are termed as zero-emission vehicles as the motors in these vehicles do not produce any exhaust or emissions. However, the increased use of electric vehicles will need an increased production of electricity. In this process, there is an emission of carbon dioxide into the atmosphere which is harmful.

Insurance For Electric Vehicles

Since electric vehicles are an innovation of the new age; they are costly in the beginning. Electric vehicles will reduce the costs incurred in the long run but initially it is difficult for many drivers to afford one. Likewise, the insurance cost for electric vehicles is also very high as the cost of electric vehicles is high.

There are some common factors which you should consider before purchasing an insurance cover for your electric vehicle.

• The process of operation of electric vehicles is quite different from that of conventional vehicles.  The battery and the unit for the supply of electricity are the major components associated with the electric vehicle. It is always advisable to purchase warranty products for the battery and the electricity supply unit of the electric vehicle.
• You should make sure that the insurance cover for your electric vehicle is provided on the electric vehicle’s correct value. You should also make sure that the coverage for the electric vehicle should be adequate enough so that you have to bear the minimal expenses while any repairs or incidents.
• You should check out for cashless cover and the claim settlement ratio of the insurance provider before you finalize the purchase of an insurance plan for your electric vehicle.
• Moreover, it is also advisable to check out for some additional features like add-on features such as engine protector, charging connector’s damage, etc., IDV (insured declared value) and the category of insurance plan you are opting for.
• You can opt for a zero depreciation cover as it will waive off any deductions in the claim amount due to depreciation and you will be eligible to claim the entire damage amount.

Why Insurance Cover For Electric Vehicles Is Expensive?

Let us have a look at the major reasons which make insurance cover for electric vehicles expensive:

• • One of the very simple and obvious reasons for the higher premium of electric vehicles is the cost of the electric vehicles itself. Electric vehicles cost almost double the number of traditional cars and thus the insurance providers know that they will have to bear the high cost for the replacement of the vehicle in case of any incident. So, the premium paid by you has to be high from the beginning itself.

 

• • Another obvious reason for the higher cost of electric vehicle insurance is the costlier parts and repairs of the vehicle. The spare parts of an electric vehicle are quite costly than traditional vehicles and the repairs can only be done by trained specialists. Since the parts and the professional to repair both are extremely expensive, insurance providers tend to fetch more amount as insurance premium.

 

• • If there is an accident and the parts of your electric vehicle needs repair, then there might be a situation of non-availability of the parts and the technicians as well. According to various surveys, the numbers of technicians who are skilled in repairing electric vehicles are very less and the insurance provider has to put in a lot of effort to find these technicians.

 

• However, many researchers predict and the market experts also have the opinion that the premium for electric vehicles is likely to reduce in future with the manufacturers continuously working towards reducing the cost for production of these vehicles and with the number of trained technicians increasing gradually.

Some Methods To Reduce Insurance Premium For Electric Vehicles

There can be quite a number of ways by which the insurance premium for electric vehicles can be reduced.

• • Research well and then get one - One of the best methods is to do a lot of research and find out good deals.  You can visit the web portal of insurance aggregators and do a comparison on the rates offered by different insurance providers and select the best one which provides maximum cover at a reasonable premium.

 

• • Pay Premium in one go - By paying your premiums in one go, you will be getting some discounts and it would be a cheaper option rather than paying in installments.

 

• Installation of security devices - Certain devices like telematics devices and dash cam can be installed in your electric vehicle. Telematics devices help in monitoring activities like the speed of driving, ways of using brakes and accelerators, etc. Insurance providers will reward good driving behavior with cheaper premiums.  Dashcams are cameras on the dashboard which can act as evidence in case of any accidents and at the time of making claims.

Hence, in India, the use of electric vehicles is increasing gradually and many companies like Mahindra and Tata Motors have already come up with their e-vehicles. Due to its eco-friendly nature, these vehicles have started to be preferred by customers. With the demand increasing, the prices of these electric vehicles are definitely going to reduce leading to a reduction in the insurance premium as well in the near future.