Evaluate an EV from an Insurance Perspective Before Buying

Published By: Money Control​

Published Date: 09-09-2022

Before purchasing an electric vehicle (EV), it is essential to assess it from an insurance perspective to ensure financial protection and peace of mind. Rakesh Jain, CEO of Reliance General Insurance, emphasises that while EVs are eco-friendly and cost-efficient in the long run, they require careful evaluation due to their unique insurance needs.

Jain highlights that insurance premiums for EVs are generally higher than those for conventional vehicles. This is primarily due to the high cost of batteries, which makes a significant portion of the vehicle's value and the specialised nature of EV repairs. He advises potential buyers to look for policies that offer comprehensive coverage, including protection for battery-related risks and damages.

Additionally, safety concerns, such as incidents of battery fires, have led insurers to consider these risks when determining policy terms. Rakesh Jain points out that specialised insurance products tailored to EVs are now available, providing coverage for issues unique to electric vehicles.

He recommends comparing policies from various insurers to find one that balances coverage and affordability. Understanding the nuances of EV insurance ensures buyers are prepared for potential risks while enjoying the benefits of sustainable mobility.

As EV adoption rises, Jain underscores the importance of staying informed about advancements in EV technology and insurance products to secure the best coverage. Evaluating an EV from an insurance perspective not only protects the investment but also offers confidence and stability to owners.