Why is your EV insurance premium expensive and you have to be in EV motor insurance policy

In the last few years, many people have switched from the internal combustion engine (ICE) to the electric vehicle (EV), depending on the need to save money and environment. However, it is important to consider the total cost of the ownership as it can overshoot your estimate and its functioning is economically inevitable. One of the factors that increase the EV price is insurance, which is more than regular ICE vehicles.Third-party insurance is mandatory for all cars, and the premium gap for EV and Ice cars is not too large, but its own damage factor is high for EV. Overall, absolute premiums are shot for various reasons. “It is highly replaced by high purchase prices, expensive special parts (especially traction batteries), high repair costs calling special technicians and lack of expert repair networks in EVs,” says Tata AIG General Insurance, Tata AIG General Insurance.Read | Buying an electric car? Before spending large money

Although most inspectors have increased the EVVs 15-25% more than 15-25%, but the online inspection on online insurance portal such as Quikinser and Policy Bazaar shows that the premium of EVS is usually 25-60% higher than ICE vessels. For example, the premium difference for the base models of Tata Nexon in the petrol and EV category is about 54% for the widespread insurance with the third party and its own damage components.

How is insurance for EV and ice vessels

What is the difference in price?
The third-party costs only at a minor, while the perfect premium shoots for EV.

 

Causes of EVS’s Higher Insurance Cost

Here are some of the factors that have more insurance for electric vehicles.
Purchase Price: One of the major reasons for high EV insurance is the cost of the vehicle itself because EVS is 12-30% more expensive than ICE vehicles. Since the EV market value is high, it translates to the high insured declared value (IDV), which makes the premium greater.Read | Low maintenance, ideal for intra-seat travel- why this user believes that electric cars have an expensive, but right investment

Battery Price: “Changing the battery is a great financial burden, which is worth 50-70% of the total cost of most of India’s most important models,” says Mayur Kacholia. “The cost of replacing the battery alone can go up to 7 lakhs by the capacity of the vehicle model and the battery,” says the chief, the motor distribution, the Bajaj Allianz General Insurance Majumder. Therefore, the risk of damage will lead to high premiums.

The cost of repair: “The repair costs for high-voltage batteries and motors in EVS are significantly higher because most of the original equipment manufacturers (OEMs) do not provide children for these components,” says Underwriting and Claims Gaurav Arora for ICICI Lombard’s property and casualty. Electric motors in EVS usually require a long life and less frequent maintenance than ice vessels, but can be significantly more expensive when repairs are needed, says Mazumader.

“In addition, infrastructure for EV repairs, including service centers and special equipment and equipment availability, is still evolving. Also, there is a relative shortage of skilled workers in handling the unique complications of the EV system, which can lead to more labor costs,” said Kacholia.

Cover features to include

Due to the advanced technology used in EVS, a comprehensive insurance policy can prevent significant financial burden. Car owners should keep in mind especially about the battery, which is not only the most serious component of the vehicle but also the most expensive, says Mazumader. In addition, make sure the policy includes protection for mechanical and electrical breakdown coverage and digital systems.

Battery Protection and Charging Supply: Battery loss is usually the main cause of EV vehicle claims that are mainly due to floods and floods. Kacholia says, “The most frequent problems in EVS causing insems of insurance claims battery failure and fire damage claims more frequency.”

“Therefore, the first and most important battery coverage is needed due to the risk caused by the risk caused by the risk of accident, natural disaster and malicious action. With your charging supply included in the vehicle, you also need to insure portable cables and home chargers,” said Chheda.

Zero Depreciation: Due to the advanced and expensive parts used in EVS, repair can be very expensive, and this feature can help you to claim the amount you need to replace or repair the area without reducing the depreciation, reducing the cost of pockets.

Half of the road: This can help you come back on the road by using either your battery or arranging a mobile charging. Since EVS is heavy than ICE vehicles, they also need special machines for towing.

Exclusively

“Over time use does not cover the depreciation that refers to the normal wear and tears of EV. Likewise, any intentional damage to the vehicle has been clearly excluded from the coverage,” says Mazumader.

Kocolia says, “Beyond the general standard exceptions in all vehicles insurance, EV insurance may have specific exceptions to battery. The battery charging or maintenance OEM guidelines may be rejected if the claims are made without pre -approval,” said Kacholia.