All You Need To Know About Car Insurance For Electric Cars

With the constantly developing era of technology, the contemporary world has brought electric cars into vogue. Irrespective of having a traditional petrol or diesel car or an electric car, insurance remains mandatory for all vehicles in order to drive legally on the road. This article will provide all the information you need to know about insurance policies for electric cars. 

Why Do Electric Cars Need Insurance? 

Electric cars have been on the buzz lately owing to the talk on air pollution and ways to curb it. Most electric cars operate on battery power. On the other hand, some work on hybrid technology. This implies that hybrid cars can have a petrol or diesel engine as the primary power source and a battery to supplement it. Another type uses hydrogen gas by converting it into electricity to drive the car. 

Irrespective of the type of electric car, any vehicle is prone to accidents and damages when it is used. The repair costs of these damages may be expensive. This is where insurance comes in. The following are the reasons why you need insurance for electric cars- 

• Legal Mandate 

The Motor Vehicle Act mandates that all vehicles have vehicle insurance in order to be driven legally on the road in India. Failing to insure your electric car will make you vulnerable to face legal charges and heavy fines if pulled aside by the traffic police.

• Third-Party Liability

Every car insurance has a third-party liability component. The third-party insurance protects the policyholder from the financial liabilities posed by the third-party’s damages. This means that the insurance companies will cover the policyholder by providing financial assistance to compensate for the loss of the third-party. In case you are involved in an accident, you do not have to worry about paying the third-party as your insurance will cover the expense. 

• Protection Against Damage

If your electric car is involved in an accident, it is very likely to have sustained a few damages. Repairing those damages will be expensive. Having an insurance policy that covers your personal damages will remove the financial burden of repairing it from your shoulders. 

• Personal Accident Cover

Insurance companies offer add-ons to your car insurance policy to help you get maximum coverage. This cover is very beneficial when you have got into any accident and there has been bodily damage. This cover will take care of all the expenses after the accident including medical expenses of the policyholder. In case of death of the policyholder in the accident, the cover will provide the sum insured to the nominee and offer financial assistance to the family.

How Is Premium Calculated For Electric Car Insurance? 

While purchasing insurance for your electric car, it is crucial to ensure that you get the maximum coverage at an affordable premium. Your car insurance premium is calculated depending on various factors. The Insured Declared Value (IDV), model of the car, age of the car, and the risk factors are one of the major determinants while calculating the premium. 

Calculating the insurance premium for electric cars is not that different. Electric cars are also categorized into the cc segment despite not having an engine for convenience. The premium for own-damage cover plans for electric cars is going to be higher. Therefore, it is advised to purchase a comprehensive insurance policy that will cover all the aspects of damage. 

Take Away

Having a car insurance policy for your electric car is highly crucial. This will not only help you compensate for any loss incurred by you during the term of the policy, but will also give you peace of mind while driving it. Make sure to get your electric car insured with maximum coverage at an affordable premium rate and drive safe. 

You may also like to read:

Benefits of Car Insurance For Electric Cars

How To Lower Premium of Your Car Insurance?

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.