Are you also taking insurance for your electric vehicle (EV)? If you take care of some things, you will never be upset. As the demand for electric vehicles (EVS) in India is increasing, the demand for EV Insurance has also increased rapidly. According to data from Policybazaar, the sale of EV insurance has increased 16 times in the last three years. In FY23, the share of EV insurance was only 0.50%, which has increased to 8.2% in FY25. It is expected to reach 14% by March 2025.
Ev two-wheelers also boom
This trend is not limited to cars just. Insurance has also increased rapidly in electric two-wheelers. According to Policybazaar, insurance booking of EV two -wheelers is doubling every year. Last year, 10,000 policies were sold, which has increased to 20,000 this year. Of these, 98-99% insurance is for electric scooters.
More insurance in cities
The demand for EV insurance is high in urban areas. 55% EV insurance policies were purchased from cities like Delhi-NCR, Bengaluru, Pune, Chennai and Mumbai. A total of 58% of policies have come from Tier-1 cities, making it clear that EVs are still limited to urban areas.
What are the things to keep in mind when taking EV insurance
EVs have certain types of risk, such as battery damage, short circuit, fire during charging etc. Therefore, companies are now giving special EV insurance policies. Companies like Digit Insurance have launched EV Shield Aid-on, which covers the battery damage and charger related problems.
Essential add-on
Ad-ons such as zero depressions, roadside assistance, battery protection and charger cover have become very important for EV cars and scooters. These ad-ons are commonly helpful in incidents such as theft or fire.
Price of insurance premium
Insurance premium for EVS is the same as petrol trains. For example, the premium of Tata Tigor EV is Rs 31,287, which is not very different from its petrol variant of Rs 23,522. However, the EV has a premium-to-IDV ratio better.
Government initiative
Steps like Fame II scheme, road tax waiver and tax exemption by the government have accelerated EVs. This also balances the cost of taking EV insurance to a great extent. The growing trend of EV insurance shows that the people of the country are now moving towards greenery. As people are understanding the special needs of EVS, the insurance companies are also bringing special schemes for them.
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