An EV is insured much like a petrol car. One thing is different, and it decides the whole policy. The battery is often the priciest part of the car. Your own-damage cover may treat it as a part that ages. If so, a new battery can cost far more than the claim pays.
So do not compare the premium first. Compare the wording on the battery. Then check if the charging kit is covered at all.
What does an electric vehicle policy need to cover?
| Cover component | What it does | Why it matters on an EV | Where to check |
|---|---|---|---|
| Third-party liability | Pays injury and damage you cause to others | Required by law, and the premium is notified, not priced by the insurer | The motor TP notification in force |
| Own damage | Pays for damage to your own vehicle | Sets whether the battery is paid at a reduced value or replaced | Policy wording, depreciation schedule |
| Zero depreciation add-on | Removes depreciation from part claims | The difference between a part-paid and a full battery claim | Add-on schedule and its age limit |
| Charger and cable | Covers the home charger and portable cable | Often left out unless named as an accessory | Accessories section of the schedule |
| Motor and battery water damage | Covers electrical damage from flooding | An EV drive train fails in a different way to an engine | Exclusions list |
| Roadside assistance | Tows or recovers a stranded vehicle | An EV out of charge cannot be jump-started | Add-on schedule |
| Personal accident cover | Cover for the owner-driver | Required, and the same on any car | Policy schedule |
Is third-party insurance cheaper for an electric vehicle?
There is a discount, and it is set by the government. A draft motor third-party notice was issued on 14 June 2023. It came from the Ministry of Road Transport and Highways, with IRDAI. It proposed a 15% cut for electric cars, two-wheelers and goods vehicles. Hybrids were proposed at 7.5%.
Check the notice in force this year before you count on it. These rates are set each year and they do change. Your insurer must apply the notified rate. It does not get to set the third-party premium at all.
The own-damage part is different. The insurer prices that itself, on the insured declared value. That is where EV cover really varies. It is also where insurers differ most from each other.
Why the battery clause decides the claim
A motor policy cuts the payout on parts by age. Rubber, plastic and glass fall in value fastest. Metal parts follow a set schedule tied to the age of the car.
A traction battery does not fit that model. It is costly. It fades with use. And it is worth a large share of the car. Treat it as a part that ages, and you fund more of any new battery yourself each year.
A zero-depreciation add-on fixes this. But almost every version has an age limit. Most also cap the number of claims. Read both. An add-on that ends in year five is no help in year seven.
What about the charger and the wall box?
The portable cable rides in the car. It is usually treated as an accessory. The wall box is fixed to your home, and many motor policies leave it out. If it is not named in the schedule, assume it is not covered.
Harm caused by a home charge point is a separate matter. That is a household or public liability question, not a motor one. Ask your insurer in writing which policy would pay. A promise on a sales call is not a policy term.
Why this page does not rank EV insurers
Because we cannot do it in good faith. IRDAI does publish claim data by insurer. It does not split that data out for electric vehicles. Own-damage premiums are rated one car at a time. A quote for one car in one pin code tells you nothing about the next.
A ranked list here would be invented. On a claim you may make once in ten years, that is worse than no list.
What we can give you is the test. Get three quotes at the same declared value. Ask for the same add-ons on each. Then read the battery wording side by side. Our guides to car insurance and third-party versus comprehensive cover explain the base policy. The IDV calculator sets the value each quote should be built on.
One more thing. Do not let a broker cut the declared value to trim the premium. On an EV, that value is what a battery claim is measured against. Protect your no-claim bonus instead. If you are still buying the car, check the terms on an EV loan first.
Frequently asked questions
Is EV insurance more expensive than petrol car insurance?
The third-party part is cheaper. That is down to the notified discount for electric vehicles. The own-damage part is often dearer, as repair and battery costs run higher. The net result depends on the car.
Does car insurance cover the EV battery?
A comprehensive policy covers accident damage to the battery. It applies depreciation unless you buy the zero-depreciation add-on. Slow loss of range is wear and tear. No motor policy covers that.
Is the home charger covered?
Usually not. It is covered only if named in the schedule as an accessory. Check before you assume. A wall box fixed to your home is not part of the car.
What is not covered on an EV policy?
Battery fade over time. Making faults. Damage from a charger the maker did not approve. And running out of charge. The first two are warranty matters, not insurance ones.
Should I buy zero depreciation cover on an EV?
On a new EV, yes, for as long as you can get it. It is the clause that decides if a battery claim pays in full. Check the age limit and the claim count at each renewal.
Sources
- Press Information Bureau, Draft notification proposing Motor Third Party Premium and Liability Rules for FY 2023-24 issued, 14 June 2023 — 15% discount for electric vehicles, 7.5% for hybrids. https://www.pib.gov.in/PressReleaseIframePage.aspx?PRID=1933683
- IRDAI, motor third-party premium rates, policyholder portal. https://irdai.gov.in/en/web/policy-holder/w/motor-tp-premium-rates-1
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