June 17, 2024

Genevie Aslinger

Safe Havens

Here’s Why EV Insurance Isn’t The Same As That Of ICE Vehicles

To EV or not to EV? A clear cost analysis between electric vehicles and ICE  cars

Electric vehicles (EVs) have changed the face of the automotive industry, bringing forth a new era of sustainable transportation. As more individuals switch to EVs, it becomes evident that the insurance landscape for these vehicles is distinct from that of traditional internal combustion engine (ICE) vehicles. The unique characteristics of EVs, ranging from their advanced battery technology to charging infrastructure, require a specialised approach to insurance. In this article, we will explore why electric vehicle insurance differs from ICE vehicles and delve into the key factors contributing to this differentiation. 

Why Is EV Insurance More Expensive?

Even though India’s EV policy has done a lot to make EV ownership more approachable, some things could still be improved. Due to the relative novelty of EV technology, R&D, manufacturing, and retail costs are higher; however, mass adoption will eventually address this issue. Even though that is still in the future, one of the more critical factors that influence EV purchases is the cost of insurance, which is typically more expensive than insuring an ICE vehicle. What is the cause of the same? Find out by reading on. 

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 insurance price for them. Currently, EVs are typically more expensive than their equivalents powered by conventional fuels, which translates naturally into higher vehicle insurance costs.

Given the depth of technology offered by EVs, particularly four-wheelers, their parts are more expensive to source or repair, which is also reflected in the insurance rates. The current state of aftermarket options, which is still underdeveloped in the EV industry, is another crucial factor.

Despite this, the advantages and benefits insurance covers for ICE and electric vehicles are the same. Insurance for electric cars includes third-party, comprehensive, and even long-term cover options that include third-party, accidental, natural disaster, fire, theft, and all other aspects covered by insurance for ICE vehicles.

Electric vehicle insurance is a worthwhile endeavour, though. Getting EV insurance is accomplished by comparing quotes, selecting the ideal policy, and understanding the specifics of your electric vehicle policy in India. #

Overall, EV insurance seems to continue to be expensive—at least for the time being and for good reasons.

The insurance landscape for electric vehicles (EVs) differs significantly from that of internal combustion engine (ICE) vehicles. The unique characteristics of EVs, such as their battery technology, charging infrastructure, and evolving safety features, necessitate tailored insurance policies. Insurers must consider the specific risks and costs associated with EVs to provide comprehensive coverage that meets the needs of EV owners. As the adoption of EVs continues to grow, insurance companies must stay informed and adapt their offerings to support this rapidly evolving market.

# Visit the official website of IRDAI for further details.

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.