Categories: Electric Vehicles

Here are 3 Things You Must Know About Electric Car Insurance

If you have decided to purchase an electric car, you are already working for the greater good of humankind. It shows that you really care about the environment and the greater good of others. But do you care about yourself too? If so, then electric car insurance is something you have to be well-acquainted with.

1. Why You Need Electric Car Insurance

It is rather logical to question the need for electric car insurance. After all, the general maxim suggests that electric cars are lot safer than combustion engines. Why does one need insurance then?

The pragmatic answer to this is financial security. As you will learn in a while, paying that extra premium for insurance might seem like a small, inconvenient hole in your pocket right now. But in the grander scheme of events, you end up saving more money.

That being said, electric car insurance works slightly differently from regular insurance. They might share the same backbone, but there are a few differences here and there. Here are 3 things that you must know about electric car insurance!

2. Is Electric Car Insurance Expensive?

Car insurance for EVs is more expensive than their fuel counterparts. While the specific quotes might vary from provider to provider, you’ll notice a slight premium as compared to the carburetor counterparts.

a. How Much Does Electric Car Insurance Cost?

This varies according to the power outputs of the vehicle. An electric car with say, more than 60-65KW would ask for a greater premium as compared to say, a 30KW vehicle. Additionally, depending on add-ons and accessories, the premiums might vary a bit.

This is why it becomes important for you to compare car insurance for electric cars across various providers. Additionally, ensure that the provider itself is a reliable one. Car insurance itself can be a tricky affair, and more so in the case of electric cars.

b. Why is it More Compared to Regular Cars?

The reason is simple. Manufacturing, maintenance, and after-market services of electric cars are a bit higher compared to regular ones. In a situation where a regular car’s battery pack may cost you a maximum of about $1,500, it is more than thrice the amount in case of an electric car.

Not to mention, the labor charges for electric cars are a lot higher than that of regular ones. After all, despite all the innovation, electric cars are still a novel item in the market. There aren’t too many people who are well-versed with the intricacies of EVs, which ideally gives them a space to quote obnoxious numbers for labor. Another reason to get car insurance.

3. Things to Keep in Mind Before Availing Electric Car Insurance

Now that you are close to availing of that insurance, keep a few more things in mind:

a. Set an Appropriate Declaring Value

Every insurance company provides a maximum compensation in case of damage, otherwise known as Insured Declared Value. Your job here is to avoid underquoting your estimated value.

It is very much possible that you run into a mishap, and instead of stoically dealing with it, you have to rely on your IDV. The reason is simple. If you underquote your car’s value, then you will have to face the brunt of being under-compensated by the insurance provider too.

b. Be Sure About the Type of Cover

As a buyer, it is imperative for you to get a fully chalked-out plan of what kind of covers you will be getting. Try to get hold of what is known as a comprehensive plan. This would provide accurate quotes based on the type of cover and ensure legal compliance to it.

Comprehensive insurances cover both damages as well as the associated legalities for it. Your job is to make sure that you get a hold of this, so that availing an appropriate cover for your electric car becomes easier.

c. Consider Add-Ons

Add-ons are there to make your life slightly easier. For instance, a lot of companies provide added-on insurance for home stations, portable chargers, as well as towing to charging stations in case of battery mishaps. Moreover, these add-ons may also cost you less in the grander scheme of things. Discounts are rather common here if you read the finer prints.

d. Make Sure that You have the Following Covered in Your Insurance

Finally, as a checklist, make sure that the following are covered. First, accidents and fire damages should be covered to start with. It would be great if natural calamities could be covered as well, in case you live in an earthquake-prone or tsunami-prone area.

Second, if you have a fancy electric car, there may be other eyes preying on it. This is why your insurance must also cover theft damages. If your car is stolen (unfortunately), your insurance provider should have your back.

Third-party losses are third in this list. If your EV does damage to a third-party or their property, your insurance provider must look into the matter.

Finally, if your EV, unfortunately, leads to a disability or death of the owner, then the electric car insurance should ideally provide compensation.

To Conclude

Owing to the rapid growth of electric cars, the future of automobiles is secure. But can you say the same about your future? Owning a piece of tech of the future isn’t enough—it is important for you to secure its place too. This is why you must avail electric car insurance, and do it right away!

Published by
Parichay Malvankar