You must have read how Elon Musk the founder of Tesla, launched an electric car, the Tesla Roadster, into space aboard the World's most powerful rocket, the Falcon Heavy Rocket. This move has brought humans a step closer to Mars.
Back home, India is staring at an electric car revolution. PM Narendra Modi is keen on making India a 100% electric vehicle nation by 2030. Nitin Gadkari the Roads Transport and Highways Minister, has said that India could switch to 100% e-vehicles, much before the 2030 deadline, as a cost advantage would boost demand.
Auto Companies in India are taking electric vehicles very seriously. Tata Motors has rolled out an electric Tata Tigor for EESL (Energy Efficiency Services Ltd). EESL has procured 10,000 electric vehicles from Tata Motors for Government Entities. Many Auto Companies like Tata Motors and Mahindra & Mahindra, are showing glimpses of their electric cars at the Auto Expo 2018. You must have seen some fantastic electric cars at the Auto Expo 2018 in Greater Noida.
As more and more citizens grab electric cars, an important question must be answered. How to get insurance for your electric car?
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Insurance For Your Electric Car?
Lets first answer the question, What is an electric car? Electric cars run on an electric motor powered by electricity from batteries or fuel cells. The electric motor is powered by a rechargeable lithium-ion battery, that can be recharged by plugging in.
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1. Is there electric car insurance in India?
Even though electric cars might be expensive compared to motor cars, many citizens are purchasing them. Electric cars do not pollute the environment, are noiseless and save precious petrol and diesel. But, have you thought about insurance for your electric car?
Many citizens in the UK have sold off their gas-guzzling cars for electric cars. Studies in the UK have shown that greener electric vehicles have 50% higher insurance costs.
Not much data is available in India, but you can expect insurance for your shiny new electric car to be quite high.
2. How to insure your electric car?
We will first answer the question, Is electric car insurance available in India? The electric vehicle market in India is quite young....Not really taken off....So, electric cars are currently covered under the traditional motor insurance plans, which cover petrol and diesel cars.
Electric cars do not have a defined engine and cubic capacity (cc). The auto insurance premiums for petrol and diesel cars, are based on cubic capacity (cc) of the engine, as per the India Motor Tariff guidelines.
It is very important to categorize the cubic capacity (cc) of electric cars to fix the insurance premium. The electric car Mahindra Reva is categorized as a 1000 cc car and you can get insurance for it.
3. Why is it difficult to insure electric cars?
Insurers want to provide a special insurance cover for electric cars. Electric cars have a controller-powered electric motor, and use rechargeable Lithium-ion batteries to power the electric motor. This makes electric cars different from traditional motor cars.
The differences between electric cars and motor cars are reflected in motor add-on covers like engine protection add-on. An engine protection cover in a car insurance plan, covers you for repair costs of a damaged engine or its parts.
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4. How is premium fixed for an electric car?
Any basic motor insurance plan has 2 components - Third party liability (Loss of life, injury or damage to an unrelated persons property) and own damage (damage to one's own vehicle in an accident or cost of medical treatment for an injury suffered in an accident).
As far as third-party liability insurance is concerned, the premium is same for traditional motor cars and electric cars. The premiums for own damage depends on cubic capacity, geographical location, accessories of the vehicle and so on. The premiums charged by insurers can vary if, the controller-powered electric motor has different risks from a traditional fuel engine.
Repairing an electric car is more costly than a traditional petrol/diesel car, and insurers could charge a higher premium for insuring your electric car.
While insuring your electric car, also pay attention to the insurer. Check the Insured declared value, type of plan to be opted, Add-on features, cashless facilities and claim procedure of the insurer. Be Wise, Get Rich.
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