The last past decade has seen two contrasts.

 

One, the rise of technology. It has changed the way people lead their lives and the way businesses function. Today, the world is dependent on technology and without it, the world would cease to function.

 

Two, the decline of the environment. Climate change in the last decade went from a near future dystopia to becoming a stark reality of life. And as a result, people have begun to develop and take up measures to combat this change.

 

One such marvellous measure is the electric vehicle (EV). True innovation. It’s a car which runs on electricity, saves petrol and diesel, and does not harm the environment. And if you are planning to buy one, there are a few things you must know regarding its insurance. Here are three such things.

 

1. There Is No Separate Insurance For EV

You must have imagined insurance providers coming up with niche car insurance policies for EVs. Unfortunately, that is not the case as of yet. Today, if and when you plan to buy car insurance for your environment-friendly vehicle, expect the good old traditional plans that are offered to petrol and diesel cars. There is still time for brands to design EV specific insurance plans.

2. Premium Calculation Is A Bit Different

In India, there are two types of car insurance plans: own damage car insurance and third-party car insurance. While factors like IDV, model, and location influence the premium of the own damage policy, the third party’s premium is calculated based on the cubic capacity (cc) of the vehicle.

 

And keeping in mind The Motor Vehicles Act, 1988 which mandates a third-party policy for all vehicles, your EV will need one as well. But, considering the fact that EVs do not have a petrol or diesel engine, how does one calculate its third-party policy premium?

 

To simplify this puzzle, insurers have categorized EV on the same lines of regular vehicles. Car insurance companies categorize EVs into cc segments. So, some electric vehicles are slotted as 1000 CC segment vehicles despite having no engine whatsoever. And the vehicles’ premium is calculated based on this categorisation.

For the own damage insurance, the premium for EVs is on the higher side. That’s because these vehicles come with an electric engine powered by a lithium-ion battery. And considering the cost that will arise to reimburse such an engine, insurers have kept the premiums higher for EVs compared to diesel or petrol vehicles. Expect an EV’s premium to cost you INR 5,000 to INR 6,000, which is more than a regular vehicle in the same category.

3. Not all add-ons are available for EVs

Add-ons are additional protection features you can buy over and above your car insurance policy. These features heighten the protection layer insurance gives to your car. But, when it comes to electric vehicles, you can avail all the add-ons which are offered to regular vehicles; all except one – engine protect. And considering how monsoons can ravage the cities, owners of EVs deserve to avail this add-on.

 

An electric vehicle is a fabulous tool to combat climate change and go green. But, while you use it to lessen the impact of pollution on the environment, remember your car insurance renewal date. If you forget, you risk driving an uninsured car which is against the law. So, keep your car insured, drive safe, and lessen your carbon footprint with every single drive you make.