Electric vehicle insurance: Navigating the future of auto coverage


12 Dec 2023

Kotak Insurance: Securing Your Electric Vehicle Future

Marked by technological advancements, expanding infrastructure, and environmental consciousness, the future of electric vehicles appears propitious. Electric vehicles, better known as EVs, offer reduced emissions and lower operating costs and can lead us toward a sustainable transportation future. As more and more people are slowly venturing into the electric vehicle landscape, it is important to see and understand how this shift can impact the future of auto coverage in India.

Electric vehicle insurance

Just like petrol and diesel cars, two types of car insurance are available for electric vehicles as well. The Motor Vehicle Act 1988 makes it compulsory for every car to have a third-party liability. We at Kotak Car Insurance recommend you go for a comprehensive policy for your electric car. Read on to understand the meaning and coverage of both:

  1. Third-party liability car insurance
    As the name suggests, third-party insurance will offer coverage to the third party for the damage/ injury you cause to them in an accident. It will not offer any coverage to your vehicle.

  2. Comprehensive car insurance
    With a comprehensive car insurance policy, you get the dual benefits of third-party liability coverage as well as own-damage cover. You can raise a claim against all possible damages that your EV suffers in an accident or due to natural or man-made disasters. Another major advantage of this policy is that you can further enhance the coverage by opting for add-ons. With Kotak Car Insurance, you cannot just buy a car insurance policy online but also renew it and raise a claim against it.

Navigating the future of auto coverage

While the coverage for car insurance of electric vehicles is quite similar to petrol and diesel cars, the premiums differ. In comparison to its fuel-driven counterparts, coverage for EVs is expensive. Let us understand why:

  1. Typically, EVs are costlier than other cars, and so the coverage they need is also higher. This makes their insurance premium higher than others.

  2. Most EVs consist of high-end car parts. The cost of replacing or repairing them is, thus, higher.

  3. Because upskilled mechanics are required to cater to the damage, the cost of repairing becomes higher.

Despite the current higher costs associated with electric vehicles (EVs) and their insurance, experts foresee a forthcoming shift in favour of consumers. Anticipated trends suggest increased demand for EVs will attract more manufacturers, subsequently reducing car parts expenses and ultimately lowering EV prices for consumers.


Although challenges like battery technology and charging infrastructure require continual innovation for widespread adoption, electric vehicles still appear quite promising. If you have or are planning to go for an electric vehicle, make sure to choose the right car insurance. Even if things go out of hand on the road, you can rest assured that you have the right financial back-up.

Related blogs

What are the different types of electric vehicles: BEVs, HEVs, FCEVs, & PHEVs

The rise of electric cars: What you need to know about insuring them

Why Is Car Insurance For Electric Vehicles Expensive

Team Kotak GIC

The content of this blog has been created and carefully reviewed by the esteemed team at Kotak General Insurance, with the sole purpose of providing valuable guidance and sharing insights on the importance of general insurance. Our objective is to assist users in making informed decisions when purchasing or renewing insurance policies for their cars, bikes, and health. Our expertly curated information aims to empower our readers with the knowledge they need to protect their valuable assets and financial interests.