At present in India, the price of EV cars is higher than petrol-based cars. So does this mean EV car insurance will be more expensive? Well, if you are looking for a new car, you should understand how insurance for an EV car can affect your budget. Is it really true that you have to pay higher annual premium on an EV car? Let’s find out in detail below!
The upfront cost of an EV car is nearly 50-60% higher than a petrol-based car, which makes EV car insurance a bit more expensive. Hence, when you buy an EV, you pay more premium than for a fuel-based car. As per current data, it has been seen that an EV car owner pays 15% to 20% extra (depends on who the insurance provider is) each year on comprehensive insurance.
The upfront cost is not the only single factor that makes EV car insurance more expensive. There are other factors too which make the insurance of EV cars a bit pricier than petrol or CNG. These common factors are:
#1. Battery kWh decides premium
The capacity of battery decides the annual premium. If car battery capacity is under 30 kWh then lower premium rates will be applied by the insurance provider otherwise the annual premium for an Ev car will be bit higher. This simply means that if battery capacity is more then premium will be more.
#2. More involvement of electrical and electronics parts
Since EV is a completely electric car which is loaded with battery, electric motor, electrical components and lots of electronic parts. Hence these things are quite expensive and hence the insurance providers charge more. Since the involvement of electrical parts is high, the insurance provider thinks that these may cause damage to other parts which are not repairable or very difficult to repair.
#3. High repair cost
You can’t take EV cars to local garage for the repair, because these cars need skilled workers and you can only find it in the agency who knows how to deal and how to fix. An agency chargers more for repair and offers the car parts mostly on the MRP rates. This makes the repair of an EV car costly and hence the insurance providers set up the annual premium high.
#4. Type of technology in EVs
Apart from the other factors, the technology also matter. An EV car with latest technology comes with extra cost which are also considered by the insurance providers, hence it has been seen that a new technology EV car premium is always higher than a old technology EV car in India.
#5. Zone or location
In addition to that, the zone or location also matters. If you living in big cities like Delhi, Chandigarh, Mumbai, Delhi-NCR, Pune, Gurugram where the labor is bit costly, then the premium of insurance for an EV car will be bit high. While in small cities, EV cars premium will be cheaper but costlier than petrol car.
So overall, if you will calculate then you will find that the EV car insurance is 15-20% extra than a petrol car. Below we are giving you some estimates that, how much an EV car insurance will cost as compared to a petrol car?
Give me a detailed comparison on how much extra premium we would pay if we buy an EV car with a 30kWh battery capacity in India? I want to compare the insurance to a petrol car with a 1200cc engine. I want comprehensive insurance and an IDV value of Rs. 9.5 lakhs. Assume that the prices for both cars are Rs. 10 lakhs and both are brand new. Please compare and give me the 1 year premium rates for both cars.
Though the EV car insurance premium is high, but you can minimize its cost by opting the benefits like government subsidies under Fame II and Fame III schemes, and free RTO. In addition to that online insurance providers like Policy Bazaar, Cover Fox, Acko offer great discount. These schemes and discount offers give a lot of relief and encourage car buyers to buy an EV car over petrol as an EV is zero emission product and best for environment!
What’s you thought on EV car insurance? Have you ever felt that the EV car insurance is more than a petrol car? Please let us know in the comments and don’t forget to share!
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