Everything You Need to Know About Electric Car Insurance

With the increase in sales of electric cars (EVs), awareness about adequate insurance coverage for these vehicles is more important than ever. As the EV industry grows, prospective purchasers may be concerned about where they could find appropriate car insurance for electric cars.

When it comes to insuring an electric car, there are a few key considerations. Electric vehicle insurance focuses on key components: battery, motor, and the car.

In this article, you will get to know about electric car insurance and zero depreciation car insurance.

What is an Electric Car Insurance?

The EV car insurance policy works just like a regular car insurance policy for other vehicles. It protects your vehicle against liabilities such as mishaps, fire, natural disasters, theft of the insured vehicle, and third-party injuries or property damage.

In addition to the basic coverage given by conventional vehicle insurance plans, EV insurance covers replacement and some expenditures that can be claimed per the policy.

What are the Coverages Under EV Car Insurance?

● Traffic Accidents: The insurer will cover any loss or damage caused by a traffic collision.

● Replacement and Repairing: The insurer will reimburse you for replacing and repairing the damaged electric car component.

● Automobile Theft: If an automobile is stolen, the insurer will cover the loss under the policy's total loss provision.

● Natural Calamity: The insurance will cover the loss or damage to the car caused by natural disasters such as floods, cyclones, and earthquakes.

● Personal Accident Coverage: Besides the comprehensive insurance plan, you must acquire personal accident coverage. It also covers the policyholder's medical expenses.

● Third-Party Liability: The Motor Vehicle Act of 1988 requires acquiring third-party insurance coverage. A third-party insurance plan covers third-party liabilities resulting from a car accident.

● Fire: If the car is damaged by fire, the insurer will reimburse the repair costs. However, if the repair cost exceeds 70% of the car's value, then the cost would be covered under the complete loss provision of the insurance plan.

The policy also includes some exclusions. These exclusions include intentional damage, drinking and driving, driving without a license, lapsed electric car insurance policy, and others declared by the insurance company.

Benefits of Buying an EV Insurance Policy

● Financial Assurance: Buying electric car insurance provides financial security because the insurer will be liable on your behalf for any loss or damage to the vehicle.

● Abiding By The Law: According to the Motor Vehicle Act of 1988, it is obligatory to acquire automobile insurance in India. As a result, obtaining an EV insurance policy protects you from legal ramifications.

● Peace of Mind: Purchasing electric car insurance provides peace of mind because you won't have to worry about unexpected costs that may result from a traffic accident.

● Coverage Improved: It is recommended that the car owner purchase a comprehensive insurance policy to have better coverage. You can always increase your coverage with add-ons given by the insurer, but you will have to pay an additional fee for your premium.

● Speedy Damage Recovery: Electric car insurance ensures timely and efficient damage restoration. As there are occasions when you cannot afford the repair costs, insurance coverage might save the day.

What is Zero Depreciation in Electric Car Insurance Policy?

Zero depreciation car insurance covers physical damages without considering depreciation. When filing a automotive damage or theft claim, a normal motor insurance policy provides reimbursement after depreciation is considered.

Car insurance with 0% depreciation will provide full recompense. A zero depreciation add-on insurance for new vehicles can also be purchased during policy renewal.

A zero-depreciation car insurance policy covers the entire claim amount, regardless of the car's depreciation value. You must pay a slightly higher price for the EV car insurance plan.

However, this add-on function is highly suggested to everyone because it prevents the potential of any out-of-pocket expenses for the owner.

What are the Inclusions of Zero Depreciation Car Insurance?

● If your EV car was stolen.

● Natural calamities such as earthquakes, landslides, and floods, as well as man-made disasters such as riots, terrorism, and vandalism, can cause damage to your car.

● An accident causes damage to your car.

● Your car was damaged as a result of a fire or explosion.

What is Not Included In The Zero Depreciation Car Insurance?

● Your car will not be protected if the event occurs after the policy's expiration date but before it is renewed.

● Deperectaing vehicle value is not insured.

● This policy does not cover any electrical or mechanical breakdowns.

● Driving the car under the influence of drugs or alcohol or any illegal substance.

● Any damage to your car caused by war, terrorist acts, invasion, radiation, insurrection, or hostilities will not be compensated.

● Activities that violate the law.

● Damages caused by negligence, such as failing to lock the automobile, which results in theft, are not covered.

● Deliberate actions cause damages.

Who Can Choose Zero Depreciation Electric Car Insurance?

To safeguard your brand-new car from unanticipated situations, consider zero depreciation coverage. Purchasing zero dep car insurance can prove advantageous to everyone, including:

● People with new cars

● People with fancy or luxurious cars

● New or inexperienced drivers

● People living in accident-prone environments.

● If you're concerned about little bumps and dings

● If you own car with costly replacement parts

If you choose to own an electric car, you can save on insurance in the same way that conventional car owners do. It is recommended that you get quotes from different companies if you want to find cheaper rates.

You can get a better deal by changing your company.