1250949 SIP myths you must know!

The cost of driving an electric car is only Rs 1 to 1.5 per kilometer. This is quite low compared to Rs 5 to 9 per kilometer for diesel and petrol cars… That’s why the sale of electric vehicles (EVs) is increasing rapidly in the country.

According to the Ministry of Road Transport and Highways the sales of EVs in the country crossed the 1 million mark in the first 9 months of 2023. Last year, this many EVs were sold throughout the year. In 2023, EVs accounted for 6.4% of total vehicle sales in the country.

There are many similarities between the insurance cover for ICE vehicles and EVs. Subhashish Majumdar, Head of Motor Distribution at Bajaj General Insurance, has said that third-party insurance cover is necessary for both types of vehicles, i.e., regular and EVs. If you are buying an EV then you should buy comprehensive insurance cover. It should include third-party damage cover as well.

EVs are more expensive than regular vehicles. The cost of batteries in EVs is almost more than half of entire cost of the vehicle. Therefore, more caution is required. Some riders can be added to the basic insurance policy to increase the safety of your car.

The battery accounts for up to 60% of the price of an EV. The risk of battery damage is highest during floods or heavy rains… If a major defect creeps up in the battery, the chances of repair are also low. Buying a new battery costs lakhs of rupees… Often, this cost is almost equal to buying a new vehicle. Therefore, adequate insurance coverage should be available to provide for security of the battery. Many insurance companies offer battery protection riders. These should definitely be included in the insurance policy

As your vehicle gets older, its value also decreases. This is called the depreciation value. However, it is not yet clear how much the depreciation value of EVs will be? However, the price of regular vehicles decreases by 10% every year. By taking the Insured Declared Value (IDV) rider, you can increase your vehicle’s insurance coverage.

Return to Invoice rider is a good option for EVs. If your vehicle is completely damaged or is stolen then the insurance company will pay you the cost of buying a new vehicle.

In India, EVs are not yet very popular, so the number of EV mechanics is limited. If your EV breaks down or if the battery is discharged, you may be in big trouble. To avoid such situations, some insurance companies offer add-on covers called “roadside assistance”. You can include this rider in your policy to avoid major problems.Some insurance companies provide major add-ons in base policy itself. Such policies can be cheaper than taking different riders.

The warranty for EV batteries is usually three years. However, some auto companies offer extended warranties of two years. But this may require additional payment. Additionally, some people install charging stations at their homes.

When you look for insurance policy for your EV, it is advisable to cover accessories used in charging the battery. Youshould consider such features before buying an electric car.