Myth vs. reality: Understanding EV insurance in India

The electric vehicle (EV) market in India has experienced rapid growth in recent years, driven by government incentives and increasing environmental awareness. However, while many people are adopting electric cars, there’s still confusion around EV car insurance.

This blog clears up some of the most common myths about electric vehicle insurance and explains how it differs from traditional car insurance.

Understanding Electric Vehicle Insurance
EV car insurance provides financial protection against accidents, theft, natural disasters and third-party liabilities. The policy may also include specific coverage for electric components such as the battery pack and charging equipment, depending on the insurer and the type of plan selected.

Let’s clear up some of the most common misconceptions surrounding electric vehicle insurance.

Myth 1: EV Insurance is too expensive
One of the biggest misconceptions about EV insurance is that it is far more costly than insurance for conventional vehicles. While it is true that the car insurance premium for an electric vehicle may differ, the cost primarily depends on the vehicle’s market value, repair costs and battery specifications.

However, many insurers are now designing specialised EV policies and offering discounts to encourage eco-friendly adoption. Additionally, with lower running and maintenance costs, owning an electric car can balance out any difference in premium over time.

Myth 2: EVs don’t need special insurance
Some people believe that EVs can be insured under the same policy as petrol or diesel cars without any adjustments. This is not accurate. Electric vehicles come with unique components like lithium-ion batteries, charging ports and electric motors that require tailored coverage.

EV car insurance policies typically include protection for these high-value parts, ensuring that you are adequately covered if they are damaged or need replacement. It’s always best to review the terms and conditions to ensure your vehicle’s components are covered appropriately.

Myth 3: EV Batteries are not covered
Another common myth is that the battery, the most expensive component in an electric vehicle, is not covered under insurance. In reality, most comprehensive EV policies include coverage for battery-related damage or failure resulting from accidents, fire or other insured events.

However, normal wear and tear or degradation over time is typically not covered, as these are considered maintenance-related issues.

Myth 4: Finding EV insurance is difficult
With the growing popularity of electric vehicles in India, many insurers have introduced dedicated EV insurance products. You can easily explore and purchase car insurance online, including for electric vehicles.

Digital platforms have made comparing premiums, features and add-ons simpler, ensuring that EV owners can make informed decisions without hassle.

Myth 5: Charging equipment is never covered
There’s a misconception that damage to home or public charging equipment is automatically excluded from EV insurance. In truth, several insurers provide optional add-ons that extend coverage to charging cables, wall boxes and other accessories.

If you install a home charger, it’s advisable to check whether your policy allows coverage for such equipment under an add-on. Since every insurer’s offering can vary, it’s best to verify coverage before purchasing or renewing your policy.

Myth 6: EVs don’t require third-party liability insurance
All vehicles operating on Indian roads, including electric vehicles, are legally required to have at least a third-party liability cover as per the Motor Vehicles Act, 1988. This coverage compensates for damages or injuries caused to others in an accident involving your vehicle.

Owners can also opt for a comprehensive EV policy for broader protection, which includes own-damage and third-party coverage. You can explore such options while buying car insurance online to find a policy that suits your requirements.

Myth 7: Claim process for EV Insurance is complicated
Another misconception is that filing a claim for an electric vehicle is more complex than for a petrol or diesel car. The claim process for EV car insurance is quite similar to that of conventional vehicles. You must inform your insurer promptly after an incident, submit the required documents and cooperate during the survey process.

The only possible difference may lie in sourcing EV-specific parts, which could take slightly longer depending on availability. However, as EV adoption increases, parts and servicing are becoming more accessible across India.

Myth 8: Only dealerships can help with EV insurance
Many buyers assume that EV insurance can only be purchased through car dealerships. While dealers may offer policies at the time of purchase, buyers are free to explore different insurers and choose a policy that meets their needs.

Buying car insurance online gives you flexibility, allowing easy comparison of coverage options, premiums and add-ons. This ensures you get a policy that fits your budget and requirements without being tied to a specific dealership.

Conclusion
Electric vehicles are reshaping India’s transportation landscape and so is the insurance sector adapting to their rise. By understanding how EV car insurance works and separating facts from myths, you can make well-informed choices about your vehicle’s coverage.

As the market grows and technology evolves, electric vehicle insurance is likely to become even more accessible, transparent and comprehensive, helping you stay protected while supporting a cleaner and greener future.