A Quick Guide to EV Insurance in India 

Reviewed by: Kranti Sambhav

Written by:  Karuna Tejwani

Credits: FLUX-pro-1.1

EV Spotlight

EV Insurance in India

Considering an electric vehicle (EV) or already own one? Understanding EV insurance is key to protecting your high-tech ride. EV insurance comes with a few differences compared to traditional vehicle insurance.

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EV Insurance Costs in India

EV insurance often comes with a higher price tag than conventional vehicle insurance. Factors like the higher upfront cost of EVs, and the expensive battery packs drive premiums up. On average, expect to pay 15-20% more for EV insurance compared to petrol or diesel vehicles.

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Why EV Insurance Costs More

EVs are packed with advanced technology, which can be expensive to repair or replace. Insurers also consider the limited availability of EV repair networks, especially in smaller cities. Additionally, there’s less historical data on EV accidents, making insurers cautious and leading to slightly higher premiums.

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What’s Covered in EV Insurance?

A solid EV insurance policy in India typically covers accidents, theft, and natural disasters. You’ll also get third-party coverage, which is mandatory. Look for policies that specifically protect your EV’s battery pack and, in some cases, your home charging equipment.

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Battery Protection: A Must-Have for EV Owners

The battery is the heart of your EV and also one of the most expensive components. Make sure your insurance policy covers battery damage caused by accidents, fires, or even water damage. Insurers like HDFC ERGO and Tata AIG offer battery-specific coverage.

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EV Car vs. EV Scooter Insurance

There’s a difference in how EV insurance works for cars versus two-wheelers. EV cars, like the Hyundai Kona Electric, usually have higher premiums due to their bigger battery packs and more comprehensive coverage options. On the other hand, EV scooters like the Ola S1 have simpler policies and tend to be more affordable to insure.

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Factors Affecting Your EV Insurance Premium

Several factors influence what you’ll pay for EV insurance. These include the value of your vehicle, your location (urban areas like Mumbai and Bengaluru usually have higher premiums), and your driving history. If you have a clean driving record, you’re likely to pay less, while frequent accidents or claims can increase your premium.

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Smart Ways to Lower Your Premium

Want to save on EV insurance? Look for insurers offering eco-friendly discounts and make sure to highlight your EV’s advanced safety features. If you’re not using your EV for long commutes, consider usage-based insurance, which charges you based on how much you drive. Also, bundling EV insurance with home insurance can lead to additional savings.

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Add-On Covers to Consider

EV owners should consider add-ons like Zero Depreciation Cover, which ensures you get the full market value of your EV in case of a claim, and Roadside Assistance, which can be essential if you run into charging issues during your trip. Some policies also offer coverage for battery-swapping stations and charging equipment.

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The Future of EV Insurance in India

As EV adoption grows, expect to see more tech-driven insurance policies. Usage-based insurance, where you pay based on how much you drive, is gaining traction.

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Tips for Choosing the Right EV Insurance

When selecting EV insurance, compare quotes from at least 3-4 insurers. Be sure to read the fine print, especially regarding battery and charging equipment coverage. Don’t hesitate to ask about discounts, and stay updated on new policies and offers as the EV insurance landscape evolves.

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