Why are Electric Cars Better than Conventional Fuel Cars?

  • Author :
  • TATA AIG Team
  • Published on :
  • 08/05/2021

In a world where air pollution and carbon emissions are a cause of growing concern, even a small step in the right direction can do a great deal of good for the environment and the generations to come.

One such step is the ‘Go Green’ initiative. Going green is all about adopting an environmentally mindful lifestyle that can help conserve and preserve the natural ecosystem. From reducing paper wastage and treating chemical products to recycling plastic and using solar energy wherever possible, there are multiple ways to adopt the ‘Go Green’ lifestyle.

Electric vehicles in India

One of the many ways to jump on the ‘Go Green’ bandwagon is to opt for electric cars over conventional fuel cars. Electric vehicles or EVs are those that are either fully or partially powered by electric power. This article lists down the various government norms around electric vehicles, subsidies that come from using one, information around electric car insurance and more.

To boost the adoption of electric vehicles, the Government of India (GOI) has formulated different policies at the centre and state level. The most popular policies around EVs include the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme and the National Electric Mobility Mission Plan 2020.

Besides these, 10 states in India have final or draft EV policies in place. These states include New Delhi, Andhra Pradesh, Karnataka, Maharashtra, Kerala, Tamil Nadu, Telangana, Madhya Pradesh, Uttarakhand, Uttar Pradesh, Bihar, Gujarat, Himachal Pradesh, and Punjab. The state EV policies largely prioritise two and three-wheelers, public transportation, and job creation. But they differ from each other in terms of targets and demand and supply incentives.

**Using an electric vehicle comes with various benefits. **

1. Cheaper alternative to fuel-based cars: With fuel prices hitting the roof, driving a fuel-based car could burn a hole in your pockets. However, electric cars can entirely run on the power they get from a few hours of charging. In fact, when calculated on a cost-per-mile basis, a 100% electric car may cost you a quarter or even lesser than what a conventional fuel-based car might cost you.

2. Cheaper to maintain: With the government offering various tax benefits and the need for reduced maintenance requirements – the cost of running an electric vehicle is significantly cheaper when compared to the traditional fuel-based cars. Considering only 3 components power an electric vehicle - on-board charger, inverter, and motor – there is less wear and tear and therefore a reduced need for maintenance.

3. Enjoyable driving experience: Those making a switch from a fuel-based car to an electric vehicle will very distinctly notice the quietness an EV brings along. This makes the driving experience a quiet and enjoyable one. Electric vehicles also have instant torque, allowing power to rest at your fingertips. Hitting your EV’s accelerator will get you an instant surge of speed, making the electric car ideal for city driving.

4. Environment-friendly: The biggest advantage of an electric vehicle is its eco-friendly technology. Electric vehicles emit zero toxic gases, which means reduced greenhouse gases. Also, electric cars are much quieter and can therefore curb noise pollution.

5. Easy to charge: Charging your electric vehicle is just like charging any of your other electronic devices. All you need to do is plug your vehicle into a charger connected to an electric grid. So, you can forget all about running to a gas station to refuel your vehicle before hitting the road.

Insurance for electric cars

As per the Motor Vehicles Act of 1988, it is mandatory for all cars to have a third-party car insurance cover. This rule stays irrespective of the car type - electric or fuel-based. Currently, there is no separate 4-wheeler car insurance for e-vehicles. This means you will have to buy the same insurance as you would for any other fuel-based car.

However, this scenario is all set to undergo a change. But with the demand for electric cars in India slowly rising, insurance providers are developing customised insurance solutions primarily for EVs. Also, to promote the use of electric vehicles, the Insurance Regulatory and Development Authority (IRDAI) has decided to incentivise electric car owners. For instance, with effect from June 16th, 2019, third-party insurance for EVs electric cars comes at a 15% lower cost as compared to fuel-based cars. Certain state governments have also announced tax benefits on the registration of electric cars.

If you wish to buy insurance for your car quickly and from the comfort of your home, you can simply buy car insurance online. You can also get a car policy renewal in case of an expired policy. But make sure you compare the quote for car insurance plans currently available in the market and buy a policy that suits your vehicle the best. Choose an insurance provider that offers your money’s worth. For instance, TATA AIG car insurance policies provide you with various add-on coverages for every component of your vehicle.

Check our resource on Compare Car Insurance to know more about picking the right insurance plan for you.


While owning an electric vehicle comes with its fair share of challenges, like the high prices of electric cars in India or the lack of EV charging stations, the situation is slowly but steadily changing. With exciting technologies in the make, there may have never been a better time to join the electric vehicle revolution.

A quick look at the frequently asked questions for this topic

Is insurance cheaper for electric cars?

While insurance providers may not have any bespoke solutions for electric vehicles, third-party insurance for EVs comes at a 15% lower cost as compared to general cars.

What advantage do electric cars have over gasoline-powered ones?

Gasoline-powered vehicles introduce a large amount of pollution to the atmosphere. Electric vehicles, on the other hand, emit zero toxic gases.

What are the advantages of a 100% electric vehicle (EV)? What are the disadvantages?

A 100% EV is better for the environment, quieter than most other vehicles, and requires lower maintenance. However, it may not be possible to always find a charging station. Also, there aren’t as many model options.

Is there a fuel benefit for electric cars?

Since electric cars operate on electric power, you do not need to rush to the gas station to get your vehicle refuelled. You, therefore, end up saving quite some money.

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Your policy is subjected to terms and conditions & inclusions and exclusions mentioned in your policy wording. Please go through the documents carefully.

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