Even though India’s EV policy has done a lot to make EV ownership more approachable, there are still some obstacles. Due to the relative novelty of EV technology, R&D, manufacturing, and consequently retail costs are higher; however, mass adoption will eventually address this issue. Even though that is still in the future, one of the more pressing factors that influence EV purchases is the cost of the EV insurance, which is typically more expensive than insuring an ICE vehicle.
The compound nature of damage that can be done to electric vehicles and the disproportionately higher cost of repairs are the main factors driving up the price of EV insurance for them.
As of now, EVs are typically more expensive than their equivalents powered by conventional fuels, which translates naturally into higher EV insurance costs. Given the depth of technology offered by EVs, particularly four-wheelers, their parts are more expensive to source or repair, which is reflected in the EV insurance rates as well. Another important factor to take into account is the aftermarket’s current state of development, which is still underwhelming for EVs.
Despite this, the advantages and benefits insurance covers for ICE and electric vehicles are the same. When it comes to third-party, comprehensive, and even long-term coverage, EV insurance covers all the same things that insurance for internal combustion engine (ICE) vehicles does, including accidental damage, natural disasters, fire, theft, and third-party injuries and property damage.
EV insurance isn’t a completely pointless endeavour, though. Getting EV insurance is best accomplished by comparing quotes, selecting the best policy, and understanding the specifics of your policy. Additionally, you must take advantage of the 15% discount that IRDAI offers on third-party auto insurance premiums.
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