Why Will Electric Vehicle Insurance Be More Expensive?

Electric vehicles are becoming more practical and economical, and their growing popularity has prompted more individuals to purchase them. Electric cars, despite becoming more economical, are still more expensive to insure than gasoline or diesel-powered vehicles. But, in comparison to their gasoline-powered counterparts, why are electric cars more expensive to insure? Continue reading to learn about the costs of electric car insurance and why they are so costly to insure.

Why Is Electric Vehicle Insurance More Expensive?

Electric vehicles are initially expensive since they are a cutting-edge technology. Electric automobiles can save money over time, but they are expensive to buy at initially. Similarly, when the price of an electric vehicle is high, so is the price of electric vehicle insurance. The following are the key causes of electric car insurance’s high cost:

  • Vehicle Costs Are Expensiv

  • The expense of electric vehicles is one of the most fundamental and evident reasons for their higher premium. Electric vehicles are nearly twice as expensive as ordinary autos, therefore insurance companies will be obliged to pay a large repair bill if one is involved in an accident. As a result, the premium is quite large.

  • Repairs and Spare Parts are Expensive

  • Another reason for the higher insurance prices is that electric car spare parts and maintenance are both more expensive than ordinary automotive components. Repairing electric vehicles requires the expertise of a technical professional. Because both the parts and the repair specialist are costly, insurance firms prefer to charge a larger premium.
  • Scarcity of Qualified Technicians

  • It’s possible that if you have an accident and your electric car’s components need to be fixed, you won’t be able to purchase the parts you need or that experienced technicians will be hard to come by. Because there are fewer experts who specialize in repairing electric vehicles, the insurance company must go to significant lengths to locate them.
  • Ways to Lower Electric Vehicle Premiums

  • Conducting comprehensive research and looking for good discounts is one of the simplest approaches. You can use the insurance aggregator’s website to compare prices from numerous insurance providers and pick the finest one that offers comprehensive coverage for a reasonable price.
    When compared to paying in installments, paying the premiums all at once will save you money.
  • In an electric vehicle, dashboard cameras and telemetry equipment can be placed. Telematics systems help track driving habits such as speed, acceleration, and braking, among other things. Insurance companies promote safe driving habits with lower premiums. Dashboard cameras may be used as documentation in the event of an accident, even while submitting claims.
    According to some experts and industry observers, premiums for electric cars are projected to diminish in the future as automakers work to minimize the cost of manufacturing these vehicles and the number of licensed technicians continues to climb.
  • What information should an EV owner share with the insurer?

  • Electric vehicles are insured in the same way that gasoline or diesel-powered vehicles are. The difference is the Insured Declared Value (IDV), which is the car’s estimated monetary value. To rapidly insure your EV, you only need to provide a few facts about the vehicle and the previous insurance (expired/active). Our digital platform (website/mobile app) makes this feasible. Furthermore, you may insure your brand new electric vehicle with ACKO. Here is the information you’ll need to insure your car with ACKO.
  • Vehicle model: One of the most important elements that affects insurance premiums is the vehicle model. The IDV is determined mostly by the vehicle’s approximate market value.
    Location: Some areas are classified as high-risk, while others are classified as low-risk. As a result, the premium in high-risk areas will be slightly greater than in low-risk areas.
    Year of production: When determining the IDV, the year of manufacturing aids the insurer in determining the EV’s depreciation value.
  • Contact number: From submitting One Time Password (OTP) to receiving regular updates, notifications about claims, due dates, and other important information, you must give your contact number with ACKO.
    Vehicle application: It is critical to inform ACKO whether the car is being used for personal or commercial purposes so that the insurance rate can be calculated appropriately.
  • Ways to find a low-cost insurance policy for electric cars

  • Here are some pointers on how to obtain a low-cost electric car insurance policy for your vehicle.
  • Buy online

  • The online platform allows you to compare multiple insurers’ policies, add-ons, and services. It will assist you in locating the most cost-effective insurance plan as well as add-ons and services that enhance the insurance plan’s worth. You may insure your car instantly with ACKO by entering vehicle, personal, and previous insurance information (if available) on our website or mobile app. It’s a hassle-free and paperless experience.
  • Use accumulated No Claim Bonus (NCB)

  • You get a discount on your premium if you don’t file any claims during the policy period. If you don’t submit a claim for five years in a row, you can get a 50% discount. Reduce the cost of EV insurance by using the accrued NCB.
  • Opt for voluntary deductible

  • A voluntary deductible is a set amount that you opt to pay out of pocket when filing a claim. ACKO’s claim liability is reduced by choosing a voluntary deductible limit. As a result, you will receive a discount on the premium. If the odds of an increase in auto insurance claims are low, however, choose a voluntary deductible.
  • Install an anti-theft device

  • By installing an anti-theft system, you are assisting in the prevention of car theft. Because you’re attempting to lessen the risk of vehicle theft, certain insurers may offer a discount on your premium. As a result, installing an anti-theft device can help you save money on your insurance.
  • Take Away

  • In India, electric vehicles are becoming increasingly popular, and several companies have already developed their own electric vehicles. Because of their environmental friendliness, buyers have begun to pick these automobiles. If demand for hybrid vehicles grows, the cost of these vehicles will definitely decrease, resulting in lower insurance premiums in the future.