All you need to know about electric car insurance plans
Summary You need to …
You need to buy an insurance plan as soon as you buy an EV. You get all the covers of a regular motor insurance policy and that helps you to keep your car protected.
Electric cars are gaining popularity in India. Affordability and longevity are two of the main reasons why more and more people are turning to EVs. If you, too, are a new or first-time EV owner, you must get a suitable electric car insurance plan for the vehicle. Take a look at this article to know more about the best ways in which you can insure your car and why it is an important thing to do.
Significance of insurance for electric cars:
There are many reasons why you should invest in a good motor insurance plan when you buy an EV. Here are some of the most significant reasons:
- Keeps your car safe:
Any vehicle, irrespective of its type, needs to be insured. This is why you need to get a car insurance plan for your EV. You may be a very good driver, but there will be some accidents that will be unavoidable. To cover the cost of repairs, you will need a car insurance plan.
- It keeps you protected from the law:
The laws in India make it compulsory for you to have a motor insurance plan as soon as you purchase a car. If you don’t have a valid car plan, you will be breaking the law, and so you can land in legal trouble. Get a policy and stay protected.
- Helps you take care of third-party expenses:
If you harm a third party in an accident or damage their vehicle or property, you will be liable to compensate for the damages. When you have a car insurance policy, these expenses are covered.
As you can see, these are some very important reasons why getting a car Insurance plan for your electric vehicle makes sense.
How expensive is electric car insurance?
A vehicle insurance plan for an EV is not very expensive when you see what coverage you get for the money you pay. This is why you should never shy away from getting motor insurance. If you are in the process of buying a policy, here are some tips to help you save money:
- Look online:
Always remember that online insurance plans are much less expensive than their offline counterparts. This is because you don’t have to pay brokerage. Also, the administrative fees are lower, and your overall costs get lowered.
There are many car insurance plans available, so you must compare them before you buy. It is very easy to compare and barely takes a few minutes. When you compare, you get to see all the available options, and then you can easily find a good and inexpensive electric car Insurance plan.
- Buy a long-term plan:
Long-term plans are available for electric cars too. These plans have a tenure of two or three years, and you pay the premium upfront at the beginning of the plan. Hence, you get to make some handsome savings as you don’t have to worry about the annual premium hikes.
Keep these tips in mind, and you will get an inexpensive vehicle insurance plan that’s loaded with the best features.
Points to remember before you buy an electric car insurance plan:
You need to make a list of your car insurance needs and then look to get the best electric car Insurance plan. Here are some things to consider:
- Insured Declared Value or IDV:
The IDV, or the insured declared value, is the current price of the car. It plays a significant role in motor insurance because the cost of insurance coverage greatly depends on this. The higher the IDV, the more you pay for the car plan. This is because if the car gets stolen or damaged beyond repair, the insurance provider is obligated to pay out the IDV. You need to ensure the correct IDV is selected when you buy the car Insurance plan, as the claim settlement will depend on it later on if needed.
- Choose the right type of cover:
There are different types of motor insurance coverage available. You can get a third-party plan or a comprehensive plan. You should get the correct type of cover, based on how old or expensive your car is and whether you want to use it for a long time or replace it soon. Buying the correct type of motor insurance ensures you have the best coverage for your EV.
- Get some riders:
Riders are add-on covers that you can add at an extra cost. They are optional covers, but they help you to customise the car plan as per your exact requirements. The common car insurance riders include the engine protection rider, the roadside assistance rider, and the zero depreciation rider. Remember, not every rider may be suitable for you, so choose the ones that are the most beneficial for you.
Once you buy a plan after keeping the points mentioned above in mind, you will surely have the best protection for your vehicle.
Covers available under an EV insurance plan:
- Third-party cover:
As stated, any damage to a third party or their vehicle/property is your responsibility, and you have to pay for the repairs. This is why the third-party covers available under the electric car Insurance plans prove to be so handy. The third-party costs can be very high, and you can lose a lot of money if you don’t have an insurer taking care of the expenses for you. A third-party cover is compulsory in India, so you must get it.
- Own damage cover:
The own damage cover refers to the compensation you get when your own vehicle gets damaged or breaks down due to a fault. Car repairs are very costly, so it helps when you have your insurance provider paying for the repair costs whenever there is a need for it.
- Personal accident cover:
If you happen to die in a road accident, your family will receive a death benefit. This is the personal accident cover and is included in every car insurance plan in India. There is also some compensation available if you are left permanently or temporarily disabled following a serious road mishap.
The final word
As you can see, getting the right type of car Insurance plan for your electric vehicle is essential. When you have a good insurance plan, you can ride your car with greater ease and convenience. So go ahead and choose a good policy and ensure you find a plan that is economical as well as wholesome in coverage. Not only is it compulsory to have car insurance in India, but it is also financially beneficial. You pay a small premium but, in return, get many comprehensive covers that help you take care of your car in the best possible manner.
Disclaimer: This article is for illustrative purposes only. For further details, please refer to the policy wordings and prospectus before concluding the sales.