Electric cars are becoming far more practical and affordable, and their popularity has inspired more people to own them. Despite becoming more affordable, electric cars are still expensive to insure compared to petrol or diesel-powered vehicles. But why are electric cars expensive to insure compared to their counterparts? Read ahead to learn about the costs associated with electric car insurance and why they are expensive to insure.
Why Is Electric Vehicle Insurance More Expensive?
Electric automobiles are initially pricey since they are a new-age innovation. Electric cars can save money in the long run, but they are pricey to purchase at first. Similarly, when the cost of an electric automobile is high, the cost of electric vehicle insurance is also high. The following are the primary reasons behind the high cost of electric car insurance:
Vehicle Costs Are Expensive
One of the most fundamental and obvious causes for the greater premium for electric vehicles is their cost. Electric vehicles are nearly twice as expensive as regular automobiles, so if one is involved in an accident, insurance companies will be forced to pay a huge repair bill. As a result, the premium is rather substantial.
Repairs and Spare Parts are Expensive
Another reason for the increased insurance costs is that electric car spare parts are more expensive than regular automotive components, and electric car maintenance work is likewise more expensive. Only technical professionals are capable of doing repairs on electric vehicles. Insurance companies prefer to demand a higher premium since both the parts and the repair specialist are expensive.
Scarcity of Qualified Technicians
If you have an accident and your electric car’s components need to be repaired, it’s possible that you won’t be able to get the parts you need or that competent technicians will be hard to come by. The number of experts that specialize in maintaining electric automobiles is substantially fewer, so the insurance company has to go to great lengths to find them.
Ways to Lower Electric Vehicle Premiums
- One of the simplest methods is to conduct extensive research and look for attractive discounts. You may use the insurance aggregator’s website to compare prices from several insurance companies and choose the best one that costs a reasonable premium for comprehensive coverage.
- Paying the premiums all at once will save you money compared to paying in installments.
- Dashboard cameras and telematics devices can be installed in an electric vehicle. Telematics systems aid in the tracking of driving habits like speed, acceleration, and braking, among other things. Good driving behavior is rewarded by insurance providers with lower premiums. Even while filing claims, dashboard cameras might serve as documentation in the event of an accident.
Premiums for electric cars are expected to fall in the future, according to some experts and industry observers, as automakers attempt to reduce the cost of manufacturing these vehicles and the number of certified technicians continues to rise.
What information should an EV owner share with the insurer?
Insurance for electric cars is the same as petrol or diesel-powered vehicles. The difference is the Insured Declared Value (IDV) – the approximate monetary value of the car. While insuring your EV, you need to share only a few details about the vehicle and the previous policy (expired/active) to insure the car instantly. This is possible through our digital platform (website/mobile app). Furthermore, at ACKO, you can also insure your brand new electric vehicle. Here is the information required while insuring your vehicle from ACKO.
Vehicle model: The vehicle model is one of the main factors that influence the insurance premium. The approximate market value of the vehicle is the main factor while deciding the IDV.
Location: Some locations are considered high-risk areas, while others are considered low-risk. Hence, the premium will be slightly higher in high-risk locations compared to low-risk locations.
Year of manufacture: While assessing the IDV, the year of manufacture helps the insurer understand the depreciation value of the EV.
Contact number: From sending One Time Password (OTP), receiving regular updates, notifications about claims, due date, etc., contact number is crucial information you need to share with ACKO.
Usage of the vehicle: It is essential to let ACKO know whether the car is being used for personal or commercial purposes to calculate the insurance premium accordingly.
Ways to find a low-cost insurance policy for electric cars
Here are tips for finding an affordable electric car insurance policy for your vehicle.
The online platform lets you compare policies, add-ons, and services of different insurers in the market. It will help you find the most affordable insurance plan along with add-ons and services that extend the value of the insurance plan. At ACKO, you can insure the car instantly by providing vehicle, personal and previous policy (if available ) details on our website or mobile app. The experience is hassle-free and paperless.
Use accumulated No Claim Bonus (NCB)
As a reward for not raising claims during the policy period, you receive a discount on the premium. The discount can go up to 50% for not submitting a claim for five consecutive years. Use the accumulated NCB to reduce the car insurance premium for EVs.
Opt for voluntary deductible
A voluntary deductible is a fixed amount that you voluntarily choose to pay during claims. By selecting a voluntary deductible limit, ACKO’s claim liability decreases. Hence, you get a discount on the premium. However, if the chances of raising car insurance claims are lower, opt for voluntary deductible.
Install an anti-theft device
By installing an anti-theft device, you are helping in preventing possible theft of the vehicle. Since you are trying to reduce the possibility of vehicle theft, a few insurers may provide a discount on the premium. Hence, installing an anti-theft device can help reduce the insurance premium.
Electric vehicles are becoming more popular in India, and some corporations have already created their own electric automobiles. Buyers have started to choose these vehicles because of their environmental friendliness. If demand grows, the cost of these hybrid vehicles will undoubtedly fall, resulting in lower insurance premiums in the future.