Expect Higher Costs for E-Car Insurance

Published By: Business Standard ​

Published Date: NA

The article warns that electric vehicle owners should prepare for higher insurance premiums compared to traditional vehicles. Despite advantages like being noiseless and non-polluting, e-cars come with elevated insurance costs due to their expensive specialised components and repair requirements.

Industry experts explain that while e-cars currently fall under standard motor insurance policies, their unique characteristics create challenges for insurers. When accidents occur, e-car repairs often require complete replacement of entire systems rather than simple part fixes, driving up costs significantly.

Insurance professionals note that coverage is limited without historical claims data for electric vehicles. Underwriting for e-cars differs from conventional vehicles as repairs require specialised mechanics and costlier parts. Instead of engine capacity, insurers use battery capacity (kW) to calculate premiums.

Experts recommend purchasing additional coverage for e-cars, including protection against battery damage, leakage and charging issues. Zero depreciation add-on covers are particularly valuable as they ensure full damage payment without deductions for car depreciation. Other recommended features include towing assistance to charging stations and on-the-spot support services.