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Why is Car Insurance For Electric Vehicles Expensive in English 2022

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Why is Car Insurance For Electric Vehicles Expensive in English 2022: 

Car insurance
Car insurance 

However, being an affordable vehicle option, electric vehicles are costlier to insure than other fuel-powered vehicles. Here is a list of reasons why electric car insurance is quite expensive.

Due to the high premium cost of the electric car.

Several factors have a direct impact on the premium cost of an EV vehicle and some of them are mentioned below.

Electric cars are expensive

One of the primary reasons why electric vehicle insurance is expensive is that this type of vehicle is more expensive than other types of vehicles. In addition, this type of vehicle has a power inverter, thermal system, charge port and other parts that increase its cost. Since the parts of these vehicles are expensive, the insurance premium is also higher as compared to petrol or diesel cars. The higher the price of the car, the higher the IDV and hence the premium.

Car parts are expensive

The most expensive part of an electric car is the lithium-ion battery which accounts for 50% of the total vehicle cost. Battery alone can make a difference of lakhs of rupees. Not only this, after a few years the batsmen also need replacement, which costs more. Due to this the premium for this type of vehicle is also high.

High level of maintenance

While electric vehicles have fewer mechanical parts than petrol and diesel cars, due to the costly and complex parts, the vehicle requires timely maintenance. A specialized mechanic is required to do the servicing work as there are less number of specialized technicians to service this type of vehicle. Due to this, labor costs can be high.

Tips to lower the cost of electric car insurance premium

Compare: One of the best ways to reduce the cost of your EV insurance is by comparing insurance prices on the platform of the insurance aggregator. Research the policy coverage and choose the one that best suits your pocket and your requirement.

Opt for voluntary deductible: It is a fixed amount that is determined at the time of purchasing the policy. You will have to bear this amount at the time of claim. This helps you to reduce the premium. The higher the deductible, the lower the premium you will have to pay.

  • Claim amount- Rs. 50,000
  • Consumable parts and component deduction- Rs. 4,000
  • Voluntary deductible amount- Rs. 6,000
  • Total claim amount- Rs. 40,000


Install an anti-theft device: The installation of an anti theft device assures the insurance company that the chances of vehicle theft are less, due to which you can get a discount on the premium.

Use the no claim bonus: NCB is the reward that the insurance company gives to the policyholder for not making any claim in 1 policy year. This exemption can go up to 50 percent if no claim is filed for five consecutive years. You can use the accumulated NCB to get a discount on premium for your electric car policy.

  • IDV - Rs.3,00,000
  • Comprehensive premium without NCB - Rs. 9,831
  • NCB Discount- 20% i.e. Rs. 1876
  • OD Premium with NCB – Rs. 7,505

Conclusion

India's EV market is expected to grow by 90% and reach $150 billion by 2030. Since these vehicles are eco-friendly, they are becoming increasingly popular. With the increasing demand for electric vehicles, the insurance cost will also come down. However, while driving an EV vehicle on Indian roads, make sure you do not forget to carry your e-car insurance policy with you.

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