The deployment of EVs is soaring, and as they increasingly enter homes, private charging stations are quickly becoming a significant part of the ownership exp.
Pooja Yadav, Chief Product Officer, Zuno General Insurance
As electric vehicles (EVs) gain momentum in India, misconceptions about their insurance have become widespread, often leading to inadequate coverage and unexpected financial burdens for owners. With years of experience in the insurance sector and a deep understanding of evolving mobility trends, industry experts have seen firsthand how myths surrounding EV insurance can create confusion.
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The reality is that insuring an EV is not just about mirroring traditional motor insurance policies; it requires specialised coverage to address the unique risks associated with battery technology, charging infrastructure, and high repair costs. Currently, the moment has arrived to distinguish fact from fallacy and provide electric vehicle owners with the right facts to make edified choices concerning insurance.
Comprehensive Car Insurance Automatically Covers EV Related Risks
It's very common for people to believe that there's no extra insurance required apart from a regular comprehensive car policy for an electric vehicle. While it does provide basic protection against theft, fire, and third-party liabilities, it does not address critical EV-specific risks such as battery damage during charging, private charging station mishaps, or short-circuit-induced fires. Recognising this gap, some insurers have introduced industry-first add-ons that specifically cover damage incurred while charging, ensuring that EV owners are not left vulnerable to these unforeseen events.
EV Batteries Are Covered Under Regular Insurance Policies
While standard insurance covers fires and accidents, it does not directly address issues related to EV battery risks, such as water ingress or short circuits while charging. Adding specialised battery coverage, insurers started extending protection against such risks, thus relieving EV owners from the financial responsibility of replacing a damaged battery that can cost several lakhs of rupees.
Charging Stations Are Not Covered Under Home Insurance
The deployment of EVs is soaring, and as they increasingly enter homes, private charging stations are quickly becoming a significant part of the ownership experience. Many owners believe that home insurance covers damage to such equipment. But home insurance doesn't cover specialised devices for charging electric vehicles. To fill those gaps, some companies have introduced a stand-alone cover for private charging stations with benefits against fire, theft, and accidental damage to essential charging accessories, including cables, connectors, and adapters.
EV Insurance Premiums Are Unreasonably High
The perception that insuring an electric vehicle is exorbitant isn't far from the truth. Truth be told, the insurance premiums for electric vehicles can, at times, be on the higher side than the regular premiums on combustion engine vehicles; this is mainly because of the high repair costs and battery replacement expenses. But now, with the declining costs of batteries along with a robust repair ecosystem, it is expected that the premiums will settle down at a lower level. Therefore, with such specific policies covering aspects that concern the customers, these owners of electric vehicles can now customize the coverage they want to protect their specific needs and avoid unnecessary expenses.
EV Owners Don’t Need Personal Accident Cover for Charging-Related Incidents
Electric vehicle owners often disregard the hazards that may arise when charging their vehicles, presuming that insurance policies cover vehicle-related incidents alone. However, accidents like fires, explosions, or electric shocks at personal charging stations may result in severe injuries. It is therefore made quite clear to the insurers that the personal accident cover add-on was only brought in to provide monetary compensation for unfortunate events, underlining the necessity of taking a more comprehensive policy that includes not merely repairing the vehicle but much more.
According to industry expert’s, EV owners should look beyond conventional motor insurance, explore specialised coverage options, and invest in policies that truly safeguard their vehicle and charging infrastructure. The future of mobility is electric, and securing the right insurance coverage is a crucial step toward a seamless and stress-free ownership experience.
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