By IndiaHub 
What is car insurance online?
Car insurance online refers to the process of purchasing or renewing your motor insurance digitally through an insurer’s website or app. It offers convenience, transparency and instant access to policy documents.
A car insurance policy typically covers losses or damages caused to your car due to accidents, theft, natural disasters or third-party liabilities. Depending on your coverage choice, you can opt for:
- Third-party insurance: Covers damage or injury caused to another person or property.
- Comprehensive insurance: Covers both third-party liabilities and damages to your own vehicle.
These policies are now available for both conventional and EVs, but the factors influencing premiums and coverage differ.
Understanding EV car insurance
EV car insurance provides financial protection for electric vehicles against risks such as accidents, theft, natural calamities and third-party liabilities. It also considers EV-specific components such as the battery, charging cables, and electric motor elements not found in conventional vehicles.
EV car insurance is evolving as insurers adapt to new technologies, driving patterns and maintenance needs. Hence, premiums and policy terms can vary depending on the insurer, vehicle model and the availability of spare parts.
Key differences between electric and conventional vehicle insurance
Let’s look at how insurance for EVs differs from that for petrol or diesel vehicles:
1. Vehicle components and coverage
EVs have unique parts such as lithium-ion batteries, electric motors and charging systems. These require specialised coverage due to their high cost and sensitivity to damage. Conventional vehicles, on the other hand, have combustion engines and fuel systems that are comparatively cheaper to repair or replace.
2. Battery protection
The battery is the most critical and expensive component of an electric car. EV car insurance may include coverage for battery-related issues such as short circuits, fire or accidental damage. In contrast, conventional car insurance does not have such a component, as fuel systems are less costly and easier to replace.
3. Maintenance and repairs
Repairing an EV requires specialised training and tools, often available at specific service centres. The cost and availability of spare parts also play a role in determining insurance coverage. For petrol and diesel cars, maintenance is more widespread and cost-effective, resulting in predictable claim settlements.
4. Add-on covers
Insurers may offer tailored add-ons for EV owners, such as:
- Battery cover: Protects against non-accidental damage or degradation.
- Charging station cover: Provides protection against damage or theft of home charging units.
- Roadside assistance: Covers battery failure or breakdown due to charging issues.
On the other hand, conventional vehicles typically have add-ons such as engine protection.
5. Environmental considerations
EV insurance aligns with India’s push for sustainable mobility. Some insurers may offer incentives or discounts for owning an eco-friendly vehicle. Conventional vehicles, however, do not typically qualify for such benefits, as their fuel emissions contribute to pollution.
6. Depreciation and resale value
Depreciation for electric vehicles depends largely on battery performance and replacement cost. As technology advances, battery degradation and recycling options will impact future insurance rates.
For petrol and diesel cars, depreciation is based mainly on vehicle age and wear and tear, making it more predictable for insurers to calculate.
How coverage differs
The fundamental difference lies in what is covered under each policy:
EV insurance differs from conventional vehicle insurance in several ways, from coverage components to premium calculation and repair needs. As technology evolves, insurers continue refining their products to match the needs of EV owners.
Whether you own an electric or conventional car, understanding these differences helps you choose the right coverage for your vehicle type. Always review the policy wording carefully and confirm the inclusions and exclusions with your insurer before finalising your purchase.
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