Electric Car Insurance: A Detailed Guide

Electric Car Insurance: A Detailed Guide
Electric Car Insurance

The next greatest thing will be electric cars, and as more of these vehicles are sold, more people will be interested in purchasing electric car insurance. Electric car insurance was created to offer financial support in the event that the policyholder's electric car suffers an unexpected loss or damage.

What is an Electric Car Insurance?

An agreement between the insurer and the owner of an electric car is known as electric car insurance. It shields the owner of an electric car against any unexpected occurrence that could cause harm. Since third-party EV insurance is required, it is advised to get comprehensive electric car insurance for more coverage.

Coverage under electric car insurance

Electric car insurance covers the following incidents:

  • Road Accidents: The insurance company will cover any loss or damage resulting from a road accident.
  • Replacement and Repair: The insurance provider will pay for you to have the damaged component of your electric car replaced and repaired.
  • Theft of Car: In the event that an automobile is stolen, the insurer will offer coverage under the total loss provision of the auto insurance policy.
  • Fire: If the car is damaged in a fire accident, the insurance company will pay for the repairs. The total loss provision of the EV car insurance plan will, however, kick in if the automobile sustains damage of greater than 70%.
  • Natural Calamity: If the car suffers loss or damage as a result of one of these natural disasters, such as a flood, typhoon, earthquake, etc., the insurance provider will cover it.
  • Personal Accident Cover: In addition to the comprehensive insurance plan, personal accident cover must be purchased.
  • Third-Party Liability: According to the Motor Vehicle Act of 1988, third-party liability insurance is a requirement. A third-party insurance policy covers third-party liabilities brought on by a road accident.

Not covered by electric car insurance

Electric car insurance does not apply in the following circumstances:

  • Own Damage: Your electric car will not be covered for damages if you do not have a comprehensive insurance plan.
  • Drink and Drive: If the driver was operating the vehicle while intoxicated when the collision that caused the damage occurred, the insurer will not give coverage.
  • Driving Without a License: If the driver of the car was operating it without a license at the time of the collision, the insurer will not pay for the loss or damage.
  • Consequential Damage: The insurer will not cover any loss or damage to the car that did not result from a collision with another object or vehicle while it was being driven.
  • Intentional Negligence: It occurs when damage to your car is purposefully ignored over a period of time, leading to an increase in the damage.
  • Lapse Insurance Plan: Failure to renew your insurance policy in a timely manner could result in a lapse in coverage. The insurer will not offer any form of coverage once the insurance policy expires.

The average cost of electric car insurance

Although coverage for an electric car is more expensive than one powered by a gas engine, you may still get low rates by comparing quotes and looking for discounts.

Electric car insurance typically costs $206 per month or $2,468 annually. That is $44 more per month than the price of gas-powered car insurance. The car model affects the average premium.

Benefits of buying electric car insurance

The advantages of getting an EV insurance policy for your electric four-wheeler include the following:

  • Financial Security: Buying an electric car insurance coverage will give you financial security because the insurer will cover any loss or damage to the car that occurs on your behalf.
  • Coverage Enhanced: Third-party insurance must be purchased, however, the decision to get comprehensive insurance rests with the car owner.
  • Quick Damage Recovery: With insurance for electric vehicles, you can get the damage repaired more quickly than usual.
  • Respecting the Law: Being on the right side of the law is made easier with an EV insurance policy.
  • Peace Of Mind: The purchase of electric car insurance gives you peace of mind because you won't have to worry about unforeseen costs that could accrue as a result of a traffic accident.

Final word

The electric car insurance policy provides financial protection for your vehicle against any unexpected occurrences that could harm your car, just like the motor insurance policy for gasoline and diesel vehicles protect. The majority of major insurance providers do provide electric car insurance, and several specialized auto insurers also provide such coverage.