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


11 Sep 2023

Key Considerations for Insuring Electric Vehicles

With the increasing popularity of electric cars, it's important to understand the unique considerations that come with insuring these innovative vehicles. As more individuals embrace electric vehicles (EVs) for their eco-friendly and cost-saving benefits, they also present distinct insurance considerations. Let's understand what you need to know about insuring electric cars.

What are the cost factors for insuring electric cars in India?

Insurance for electric cars in India involves several cost factors that differ from insuring traditional combustion engine vehicles. Here are some key cost factors to consider when insuring electric cars in India:

  • Vehicle value

Electric cars tend to have a higher purchase price compared to conventional vehicles. As a result, the insurance premium may be higher since the sum insured is typically based on the vehicle's value.

  • Battery replacement cost

The battery pack is a significant component of an electric vehicle, and its replacement cost can be substantial. The battery's value might be considered when calculating the premium. Higher battery replacement costs can contribute to higher electric vehicles insurance premiums.

  • Repair costs

If repair costs are higher for electric vehicles compared to traditional vehicles, it may be reflected in the insurance premium. Electric cars often have specialized components and systems that require trained technicians and specialized equipment for repairs.

  • Charging infrastructure

The availability and accessibility of charging infrastructure can affect insurance costs. Areas with a well-established charging network may be considered less risky, potentially resulting in lower premiums compared to areas with limited charging infrastructure.

  • Safety features

Electric vehicles are often equipped with advanced safety features and technologies such as regenerative braking, collision warning systems and autonomous driving capabilities. These safety features can reduce the risk of accidents and contribute to lower insurance premiums.

  • No-claim bonus

Kotak car insurance offers a no-claim bonus (NCB) as a reward for not making any claims in the previous policy term. NCB can reduce the insurance premium for electric cars as well, similar to traditional vehicles.

  • Government incentives

In India, the government has introduced various incentives and policies to promote electric vehicles, including lower taxes and subsidies. These incentives may indirectly impact insurance costs by reducing the overall cost of owning an electric car.

Specialized coverage for electric cars

Electric vehicles (EVs) have a unique power source—the battery. These batteries are expensive and require specialized care. Insuring an electric car requires specialized coverage due to the unique characteristics of these vehicles. This may include protection against battery failure, degradation, or even replacement costs. Understanding the specific coverage options available for your EV's battery and charging equipment will help you protect your electric cars. It's crucial to ensure that your insurance policy covers these specific components and potential risks associated with electric vehicles.


As electric cars gain popularity, it's crucial to understand the unique aspects of insuring these vehicles. To get an accurate estimate of insurance premiums, visit kotak car insurance.

Related blogs

Why Is Car Insurance For Electric Vehicles Expensive
What are the different types of electric vehicles: BEVs, HEVs, FCEVs, & PHEVs
Factors To Weigh While Purchasing an Electric Vehicle

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.