Electric car insurance is a legal contract between the insurer and electric car owner. It protects the car owner from any unexpected incident leading to damage. Since it is mandatory to purchase a third-party car insurance policy, it is necessary to purchase comprehensive electric car insurance.
Electric cars have caused quite a stir in recent years and for good reason. With climate change just around the corner, the smartest decision you can make for yourself and future generations is to switch to electric cars. They reduce dangerous air pollution and greenhouse gas emissions and some sections of these cars are built with environmentally friendly or recycled materials, reducing the environmental impact.
What is insurance?
Insurance is a means of protection from financial loss. It is a form of risk management, primarily used to hedge against the risk of a contingent or uncertain loss.
An entity which provides insurance is known as an insurer, an insurance company, an insurance carrier or an underwriter. A person or entity who buys insurance is known as a policyholder, while a person or entity covered under the policy is called an insured.
Policyholder and insured are often used as but are not necessarily synonyms, as coverage can sometimes extend to additional insureds who did not buy the insurance. The insurance transaction involves the policyholder assuming a guaranteed, known, and relatively small loss in the form of a payment to the insurer (a premium) in exchange for the insurer’s promise to compensate the insured in the event of a covered loss.
The loss may or may not be financial, but it must be reducible to financial terms. Furthermore, it usually involves something in which the insured has an insurable interest established by ownership, possession, or pre-existing relationship.
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What is Vehicle insurance?
Vehicle insurance (also known as car insurance, motor insurance, or auto insurance) is insurance for cars, trucks, motorcycles, and other road vehicles. Its primary use is to provide financial protection against physical damage or bodily injury resulting from traffic collisions and against liability that could also arise from incidents in a vehicle.
Vehicle insurance may additionally offer financial protection against theft of the vehicle, and against damage to the vehicle sustained from events other than traffic collisions, such as keying, weather or natural disasters, and damage sustained by colliding with stationary objects. The specific terms of vehicle insurance vary with legal regulations in each region.
What is Electric Car insurance?
Electric car insurance is a type of motor insurance that is there to protect electric cars from a number of potential damages and losses, such as those that might happen in the case of accidents, natural calamities, or fire.
Electric cars are becoming more and more popular as they are affordable and better for the environment. And in the same way that regular cars need gasoline or diesel for fuel, these cars are charged with electricity just like your phone or laptop!)
Since electric cars are still not very common in India, getting an insurance policy for your electric car might be a little different.
Why should I buy Electric Car Insurance?
You cannot predict what could happen to your precious electric cars. These types of cars have many complex technical and mechanical parts that help it run smoothly, but can also cause problems at any time.
Therefore, having electric car insurance can go a long way and offer financial protection in an unfortunate event like accidental damage, fire, natural disaster or theft and can ensure you drive your car worry-free. You should also keep in mind that having at least third party auto insurance is mandatory in India.
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How much does electric car insurance cost?
Although electric vehicles typically cost more to insure than their gas-powered counterparts, Bankrate analyzed premiums for several makes and models using data provided by Quadrant Information Services to provide insight into just how costs are affected when insuring an electric vehicle.
| Electric vehicle | Average 6-month premium | Average annual premium |
|---|---|---|
| Audi e-tron | $1,260 | $2,520 |
| Hyundai Ioniq | $891 | $1,782 |
| Fiat 500c | $732 | $1,463 |
| Ford Fusion | $837 | $1,674 |
| Ford Focus | $817 | $1,633 |
| Jaguar I-PACE | $921 | $1,841 |
| smart EQ fortwo prime | $779 | $1,557 |
| smart EQ fortwo pure | $747 | $1,494 |
| Tesla Model 3 | $1,142 | $2,283 |
| Tesla Model S | $1,901 | $3,802 |
| Tesla Model X | $1,662 | $3,324 |
| Toyota Prius | $870 | $1,740 |
Electric Car insurance cost india
The premium rates for the third-party liability insurance are fixed by the insurance Regulatory and Development Authority of India (IRDAI). As an initiative to promote the use of the electric vehicle in the country, the IRDAI has set the third-party liability insurance premium rates at 15% discount as compared to petrol/diesel engine vehicles.
The third-party insurance rates are based on the capacity of the battery as mentioned in the table below.
| Capacity of battery | Premium Rate for 1 year (In INR.) | Premium Rate for 3 years (In INR.) |
|---|---|---|
| More than 65 kilowatt | 6707 | 20659 |
| More than 30 kilowatt & less than 65Kilowatt | 2738 | 8104 |
| Less than 30 kilowatt | 1761 | 4492 |
