As EV ownership grows increasingly widespread, comprehensive EV insurance has become vital. Electric vehicles (EVs) have grown from a niche market to a popular choice in India, thanks to environmental consciousness and the attractiveness of low-cost, sustainable transportation. EV registrations increased by 11% year-on-year between April-Nov 2024, while in the first half of 2024 it grew 16%, indicating the growing desire for environmentally friendly transportation solutions. This expansion is being aided by significant infrastructural improvements, with thousands of public charging stations now available nationally. As EV ownership grows increasingly widespread, comprehensive EV insurance has become vital.
Why you need better insurance for EVsStandard motor insurance typically covers third-party liability and basic risks like accidents, theft, and fire. EVs, on the other hand, frequently demand supplementary coverage due to their unique components and high replacement prices. Section 80 EEB of the Income Tax Act provides tax savings of up to INR 1.5 lakh on loan interest for electric car purchases.
Despite the financial gain, ordinary insurance may fail to cover high-value EV items such as batteries and charging equipment. To meet these special needs, EV insurance policies include several add-ons designed to improve protection and provide EV owners with peace of mind.
Essential add-ons for EV insurance
One of the most valuable add-ons for EV owners is Zero Depreciation Cover. Unlike traditional policies that factor in depreciation, this add-on ensures that owners receive the full replacement cost for parts—a key advantage given the high price of EV components. Another essential add-on, especially for those who drive frequently or in remote areas, is Roadside Assistance. This cover provides emergency services like towing, tyre changes, and battery jump-starts, which are invaluable if an EV owner is far from charging facilities.
Additionally, Return to Invoice (RTI) Cover ensures that if the EV is declared a total loss or stolen, the owner is reimbursed the full amount, bridging any gap between the insured value and the vehicle’s original price. Given the importance and cost of EV batteries, Battery Protection Cover is a vital add-on that covers repair or replacement costs for battery damage or failure. This add-on is critical, as battery replacement can account for 40-60% of an EV’s total value.
For added personal safety, Personal Accident Cover provides financial compensation to the policyholder in case of accident while operating the EV. The No-Claim Bonus Protection add-on preserves discounts on premiums even after a minor claim, ensuring affordability for future renewals.
Innovative add-ons for EV charging equipment protectionAs the EV industry grows, more specialised add-ons emerge to satisfy changing needs. For instance, insurers have introduced add-ons such as private charging stations, charging accessories, and car protection while charging, resulting in a comprehensive solution that incorporates the most recent EV developments. These additional coverages provide vital support to owners who rely on home charging stations or frequently use public facilities, ensuring the security of their charging equipment investment.
Factors to consider when choosing add-ns
While these add-ons come at an additional cost, they provide EV owners with a complete safety net, reducing repair expenses and maintaining the flawless operation of their vehicles. Choosing the correct add-ons requires considering aspects such as driving patterns, frequency of use, and unique EV model requirements. With a comprehensive insurance plan, EV owners may enjoy increased protection and drive with confidence, free of unexpected costs. As electric mobility becomes more common, a personalised auto insurance plan with important add-ons gives critical protection and peace of mind, allowing owners to use their EVs with confidence.
