Guide to Choose the Right Insurance for Your EV

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The age of electric mobility is here, and many companies have also launched many electric cars in India. With the continuing uptick in fossil fuel prices, more and more people are choosing electric cars, especially in urban areas with reliable electricity supply and people needing vehicles for their daily activities. Many people get confused about insurance for electric vehicles like do you need insurance for EVs or not? You really need insurance because it is legally mandated and a wise financial decision. Here are a few questions which you need to ask yourself to decide which is the best car insurance for your new battery-electric vehicle.

1.     Are you buying a comprehensive policy or third party car insurance? This is perhaps the most basic, yet the single more important factor that you must choose when you decide which is the best insurance for your EV. Comprehensive car insurance is the better choice. You can get third party car insurance, but it only fulfills the legal aspects. In case of damage to your car, without any damage or comprehensive cover, you will end up paying car repair costs out of pocket. Nor will you get any compensation if the car is stolen! On the other hand, comprehensive car insurance will provide all the round protection to your vehicle.

2.     Are your preferred service centers in the insurance company cashless network? One thing that every new electric car owner needs to know is that most of the repair and service work is generally done in the car manufacturer’s authorized service stations. Your friendly neighbourhood garage may not have the parts for your car repair, and chances are high that they will not have access to repair software (since a lot of things in electric cars are essentially computer-controlled). Nor will they have skilled technicians trained in EV repair. As a result, you need to check with the car insurance company beforehand that the same is covered in your insurance company’s cashless network!

3.     What is the claim processing speed of the insurance company? Not many people realize this but the speed with which an insurance company processes its claims is also very important in deciding which is the best insurance. Firstly, it is obvious that the slower an insurance company processes the claim application, the more time it must spend with the menders and that time it is not in use by you. Second, the number of trained repair technicians is still to scale up and as a result, repair takes time. If the insurance company also slows things down, everything becomes slower

4.     Does the insurance company provide you with an emergency roadside assistance add-on with the policy? Insurance companies have started to provide emergency roadside assistance in the last few years but still not every company provides it. Make sure that you get your insurance from a company that offers roadside assistance as an add-on that is either included for free or at some extra payment. This is going to be almost a lifesaver for an EV owner. If the EV that you own gets stuck at some spot for any reason, they can come to help you, and if needed tow you to the nearest service center for your vehicle.

5.     What other add-ons are available with the policy? It is also important to understand that add-ons to car insurance plans provide a lot of value for the money you spend. You have to be careful with what add-ons you are choosing. For your new EV, the first and most important add-on you should choose is to get a zero-depreciation cover. The next add-on you must choose if available is a return to invoice cover. This can work really well in your first year of car ownership. Other add-ons that you should choose are a daily allowance cover in case your car spends too long in the repair yard, and an NCB protection add-on, particularly if you are carrying NCB from a previous car.

6.     Are you carrying forward your No Claims Bonus? Did you know that you can carry forward your No Claims Bonus from your previous car to your new car? If you already have 50% NCB on your previous car, just get an NCB certificate from your previous car’s insurance company and include the same when you get your new car policy!

7.     Is the insurance policy available online? Now, this may seem like a very simple thing but if you can buy your insurance online, you can get a lot of advantages. First of all, it allows you to bypass a car dealer’s insurance with a directly purchased one, which is always much cheaper. Plus, when you buy insurance online, you also get complete control over what you are buying.

Buying an electric car can be a great decision and you need to look at it as a complete deal in all aspects. It will be very affordable for you in terms of both ownership costs and running costs. In terms of car insurance for EVs, however, you need to be exceptionally careful and do a lot of due diligence. It is only when you have found satisfactory answers to the above questions that you can truly say that you have found a good car policy for your new electric vehicle.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to policy wordings and prospectus before concluding the sales

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