Electric Car Insurance

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Electric Car Insurance

With the Indian population becoming more environmentally conscious in the last few years, people's preference for cars has slowly given way to electric cars. Electric cars are an eco-friendly alternative to current on-road gasoline cars, significantly reducing their carbon footprint. However, despite the environmental benefits of commuting via an electric car, it is crucial to safeguard your EVs from unforeseen circumstances like accidents, theft, etc.

Similar to car insurance for a gasoline car, having an EV insurance policy is equally necessary to protect your finances in times of need. Let's explore the role, benefits, and ways to find the best car insurance for electric cars.

What is Electric Car Insurance?

Owning an electric car is not sufficient for ensuring a complete environment and vehicle safety.

Similar to how four-wheeler insurance extends financial support for any damage or loss incurred by the insured vehicle or third-party liabilities, electric car insurance is an insurance category designed to provide maximum coverage for damages and losses incurred by your electric car or third-party liabilities.

With EV insurance, you can secure yourself from the financial burden of excessive repairs and other maintenance expenses in case your EV is damaged.

Electric insurance provides extensive cover for accidents, natural and man-made disasters, fire, burglary, etc., which helps keep your car protected and operational, even after unexpected accidents.

Key Features and Benefits of Buying Electric Car Insurance from Tata AIG

Extensive Coverage - Depending on the type of EV insurance you choose for your electric car, you may receive third-party damage and loss coverage with third-party insurance. However, with comprehensive EV insurance, you will receive coverage for both third-party and insured vehicle damages and losses.

Financial Protection - In unforeseen situations requiring excessive repair work, paying out of your pocket might not be feasible. With EV car insurance from Tata AIG, we will take care of the expenses for you by providing maximum financial support.

Customisation Flexibility- With a comprehensive EV car insurance policy, you can customise your base policy with 12 different add-ons to increase coverage for a slightly higher premium. This will allow you to cater to your specific needs with the most effective plan from us.

Compliance with Law - Third-party car insurance is mandatory for gasoline and electric cars. Thus, with EV insurance, you will not have to worry about potential fines, as you are complying with the traffic laws.

Online Services - We ensure maximum convenience for your customers. Thus, for all car insurance purchases, renewals, claim settlement requests, and general queries, you only need to visit our website.

EV Car Insurance Inclusions

Natural Disasters - Any damage or loss incurred by the insured car due to natural disasters like earthquakes, tsunamis, cyclones, floods, etc., are covered by our EV insurance policy.

Man-made Disasters - Any damage or loss incurred due to man-made disasters like explosions, strikes, riots, etc., are covered.

Accidents - When your electric car meets with an accident, any damage incurred is covered under the comprehensive EV insurance.

Theft - In case your electric car or its parts are stolen, due compensation cover is extended under comprehensive electric car insurance.

Transit Damages - Any damage or loss incurred while your electric car is being transported from one place to another is covered.

Third-party Liabilities - If the insured electric car causes any damage or loss to a third party or their property, the expenses for the same are covered under both third-party and comprehensive plans.

Self-Ignition - If the car catches on fire without any voluntary disruption or accident, the damage or loss for the same is covered under a comprehensive plan.

EV Car Insurance Exclusions

Negligent Driving - You are not covered for any damage or loss incurred while driving your electric vehicle rashly on the roads or participating in speed racing or similar activities.

Driving after Substance Consumption - Any damage or loss incurred while driving under the influence of alcohol or any other illegal substance will not be covered under any EV insurance policy.

Driving without the Necessary Documentation - You cannot file a claim if you are driving without a valid licence or EV insurance.

General Wear and Tear - The general wear and tear or maintenance of an electric car is not covered under any insurance plan.

Driving Outside Permitted Areas - If your electric car incurs damages while driving outside the permitted geographical areas, no claim will be accepted under any car insurance policy.

List of Electric Car Insurance Add-ons

  • Return to invoice cover

  • No claim bonus

  • Zero depreciation cover

  • Emergency transport and hotel expenses cover

  • Tyre protection cover

  • Key replacement cover

  • Personal accident cover

  • Roadside assistance cover

  • Daily allowance cover, etc.

How to Raise a Claim Under EV Insurance?

Notify Us - The first step is to update us about the claim. You can do it by either visiting our claim page or calling us at 1800-266-7780. Once we receive the request, we will share a self-inspection form on your mobile number.

Fill out the Inspection Form/ Survey - Once you have the form, fill it out with accurate details regarding the damages incurred by your electric vehicle. Additionally, one of our surveyors will investigate the damages.

Choose Claim Settlement Mode - After inspection and form submission, you must choose between a reimbursement and a cashless claim.

For a reimbursement claim, you will need to pay for the repairs yourself at any garage of your choice, and we will reimburse you based on the policy terms and the repairs done.

For a cashless claim, you will need to visit one of your 7500+ network garages and await a confirmation report from us. After that, we will take care of the payment for repairs.

Submit Necessary Documents—To submit a reimbursement claim, you must submit all the necessary documents, such as a duly filled claim form, all repair work receipts, insurance policy number, vehicle registration certificate, and other required documents to support the claim and payments made.

Receive Claim Settlement - Once the repair work is done, you will receive a reimbursement of the maximum amount applicable under your policy for a reimbursement claim. For a cashless claim, once we approve the repair amount based on your policy, we will pay the garage directly on your behalf.

How to Buy Electric Car Insurance Online?

Visit the Tata AIG website.

At the top, click “All Products.” Select “Car Insurance” from the drop-down.

Enter your car registration number in the space provided.

Click on “Get Price”.

Most of the information about your vehicle will be fetched automatically and displayed. Verify the same.

Choose your car insurance policy, Insured Declared Value (IDV), add-ons and other coverage details.

The online calculator will display the car insurance cost.

Verify all the information and proceed to pay the premium.

Upon successful payment, the policy document will be mailed to you on your official email ID.

How to Renew Electric Car Insurance Online?

Visit the Tata AIG website.

On the main screen, select “Renewal” and then “Car” option from the options on the screen.

Enter your car registration number in the space provided.

Click on the “Renew” option under it to proceed.

Your current EV policy will be displayed on the screen. Review it, add or remove riders based on specific needs, and then click on “Continue”.

Based on your selections and changes in the previous step, a revised quote for your EV insurance policy will be displayed.

Review it carefully, and upon satisfaction, make the necessary payment to renew your EV insurance online.

Third-Party Electric Car Insurance Rates

The Insurance Regulatory and Development Authority (IRDAI) calculates the third-party electric car insurance premium rates based on the car's kilowatt-hour capacity.

Let us look at the current rates decided by IRDAI below for one-year plans.

Electric Car’s kilowatt-hour capacity Premium Rates (for 1 year)
Below or equal to 30 kW ₹1,780/-
More than 30kW but less than 65kW ₹2,904/-
More than 65kW ₹6,712/-

(The rates above are decided by IRDAI and are subject to change based on recent updates and revisions. Thus, always check for these updates for the rates from time to time.)

Factors that Impact Comprehensive Electric Insurance Premium

As mentioned above, for third-party EV insurance, the premium rates are finalised by the IRDAI. However, for a comprehensive EV insurance policy, several factors impact the final premium calculation.

You can use our website's online car insurance calculator to calculate an accurate estimate of your EV insurance cost.

Let us look at some of them below.

**Scope of Coverage-**The scope of coverage you require is one factor that impacts your EV insurance premium value. For instance, if you choose third-party EV insurance, the premium will be lower due to the limited coverage.

However, if you choose comprehensive insurance for EVs, the premium will be higher due to the extensive coverage.

Add-ons- With comprehensive electric car insurance, you can customise your base policy with add-ons. The premium value will increase based on the number of add-ons you combine.

EV Age and Model- The electric car’s age and model also impact the premium. For instance, the premium will be higher for a new model EV than for an EV that is a few years old and of a lower model.

No Claim Bonus- For every consecutive claim-free year, you can benefit from a discount on the premium at the time of renewal. The discount rate ranges from 10% to 100%.

Insured Declared Value- The IDV of your electric car is the maximum amount you will receive as compensation for your vehicle in case it is stolen or damaged beyond repair. It is calculated based on the EV’s market value minus the depreciation. Thus, the higher the IDV, the higher the premium value.

Security Devices- Based on the number of security and anti-theft devices you have installed in your electric car, the premium value can vary. The more devices, the lower the premium, and vice versa.

Voluntary Deductibles- Most EV insurance plans have a standard deductible option. It is the percentage of the claim amount that you will pay on your own before the insurer extends financial support to cover the expenses. The higher the voluntary deductible amount, the lower the premiums.

How to Calculate EV Insurance Cost?

The comprehensive EV insurance plan includes third-party and own-damage liabilities for your electric car. Let us look at the formula to calculate this below.

For the third-party cover, the cost will be based on the list given by IRDAI.

For own damage cover, we need to calculate the electric car’s IDV and then include other calculations as mentioned below.

For IDV, the formula = (electric car’s showroom price + price of accessories)-** depreciation value, as given by IRDAI.

Once you have the IDV, use the same to calculate own damage cover value as mentioned below.

The premium for own damage =

(IDV X Insurer’s premium rate) + (add-ons)-** (NCB + other discounts)

For the total comprehensive calculation, add the third-party insurance premium value with the own damage insurance premium value using the formula below.

= (third party premium) + (IDV X Insurer’s premium rate) + (add-ons)-** (NCB + other discounts)

Tips to Choose the Best Insurance for Electric Cars

Assess your Needs - The first tip to choose the best insurance for electric cars is assessing your coverage needs. Based on this assessment, you can evaluate the budget you can keep aside for the premiums and select a plan that meets your requirements with adequate coverage without a financial burden.

Compare Different Plans- Before finalising any one EV insurance policy, it is necessary to compare different plans to judge which best aligns with your requirements. This decision will also help you plan your finances better.

Review Add-ons - Along with the base policy coverage, you need to evaluate the range of add-ons available with an insurer to check whether you have customisation flexibility to get coverage for specific needs.

Insurer Reviews - While choosing an insurance plan, you also need to assess and choose the right insurer to buy the plan from for peace of mind. To do this, you must check for online reviews and customer testimonials of different insurers to pick the one that offers top-notch customer service and satisfaction.

Claim Settlement Ratio - An essential tip to choosing the best insurance for electric cars is checking the claim settlement ratio of an insurer before purchase. This ratio will help you understand how fast or effectively your claims will be settled when needed. Tata AIG has a claim settlement ratio of 98%, ensuring timely and efficient settlement.

Procedures - Another important tip to help you make the right decision is checking the convenience of completing purchase, renewal, and claim filing procedures for different insurers. We at Tata AIG ensure maximum efficiency and, thus, offer an easy-to-use website for all procedures.

Disclaimer / TnC

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

Related Articles

Is vehicle insurance required for electric vehicles in India?

Is vehicle insurance required for electric vehicles in India?


Similar to diesel and petrol cars, having valid third-party EV insurance for your electric car is mandatory under the Motor Vehicles Act 1988. However, it is necessary to note that this type of insurance does not provide coverage for damages and losses incurred by the insured electric car. For that coverage, you must choose a comprehensive plan.

How much does the electric car insurance cost?


For third-party insurance for electric cars, the insurance cost is finalised by the IRDAI based on the kW of the vehicle. However, for comprehensive insurance plans, a range of factors impact the premium, including electric car model, age, add-ons, voluntary deductible, anti-theft devices installed, NCB, etc.

Do I need to carry a PUC certificate while driving an electric car?


Yes, as per the rules and regulations of the Motor Vehicles Act 1988, you must carry a PUC for your electric car to avoid fines, as it is mandatory.

Why does electric vehicle insurance cost more than petrol or diesel vehicles?


Some of the reasons why electric vehicle insurance costs more than petrol or diesel cars are due to the overall cost of the electric car, the expenses for repairs, and the limited availability of the proper or timely repair services in the market, as EVs, are not the most popular vehicles on the road currently in India.

How can I find the right insurance company for my EV car?


To make the correct decision regarding the insurance company for your EV car, you must assess the types of coverage and add-ons they are providing, customer reviews, market popularity, claim settlement ratio, customer support provision, and other essential aspects.

Is personal accident cover included in comprehensive EV insurance?


With Tata AIG's comprehensive plans for electric cars, you get a personal accident cover of ₹15 lakhs in case the vehicle's owner or driver is severely injured in an accident.