Electric cars have generated quite a stir in the Indian automobile market as cost-effective and eco-friendly alternatives to petrol and diesel-powered vehicles. While EVs have the advantage of lower running costs, insuring them is pretty expensive. For instance, the insurance cost of the best-selling electric vehicle in India, the Tata Nexon, is roughly Rs 90,000. The advanced automotive technology used in EVs and the high price of the battery have driven up insurance premiums for such cars.
Apart from opting for car insurance online, comparing car insurance and picking plans with relatively lower premium costs will help you seal the deal. Here are some tips you can keep in mind when seeking to lower the premiums for your electric vehicle.
Extensive research is the first stepping stone on the quest to find an affordable motor insurance policy for your electric car. You can visit various insurance provider websites to compare plan coverages, benefits, premiums, etc., to pick the policy that best suits your requirements without burning a hole in your wallet. Even when buying a new electric vehicle, you are not bound to purchase the insurance offered by the dealership. You can opt for your preferred insurance plan and company. It is advisable to look for options online before finalising.
2. Increase your deductible amount
Raising your deductible amount during car insurance renewals is another prudent way of reducing the premiums for your electric car. This deductible amount corresponds to the money you need to pay out of your pocket when filing claims. It’s a proportion of the damage claim that the policyholder must bear while the rest of the amount is covered by the insurer. The deductible limit of your policy is directly proportional to your premium rates, as a high deductible reduces the claim liability for the insurer. Thus, you can lower the premiums for your electric car by simply increasing your deductible amount.
3. Refrain from registering claims for minor damages
Raising claims for minor damages can hamper your chances of enjoying No Claim Bonus (NCB) benefits due at the time of your car insurance renewal. For a claim-free year, your car insurance policy provider is expected to extend NCB discounts on your premium sums. Since NCB discounts can range from a hefty 20% to 50%, you will be missing out on an opportunity by filing for minor claims.
A comprehensive car insurance plan protects the vehicle against theft and damage. Since the value of an electric car is much higher than an internal combustion model, your premiums tend to be higher. One can reduce premiums by installing anti-theft devices like alarms on your electric car. It will help boost the safety of your vehicle, which will automatically reduce the claims liability of the insurance provider, thereby reducing your premium.
5. Avoid unnecessary add-on covers
It is natural to think about add-on covers when looking into car insurance renewals online. While it can be pretty tempting and prudent to think about good riders that will enhance the scope and value of your original policy cover, you must remember that these riders will increase the already high premium costs for your electric car. Thus, you must avoid unnecessary add-on covers for your e-car to prevent driving up the premium prices and choose your add-on covers wisely.
6. Utilise your accumulated NCB
Your policy provider will offer you a No Claims Bonus as a reward for a claim-free year. It translates into a discount on your premium amount during car insurance renewals. NCB discounts can range up to 50% if you’ve maintained five consecutive claim-free years. Claiming these accumulated NCB discounts can significantly lower the premiums for your electric car.
While EVs are undoubtedly environment-friendly commute options, their insurance costs remain a deterrent for buyers. However, there are ways to keep this premium cost in check while comprehensively insuring your car.
