Summary
The battery is one of the most expensive parts of the electric vehicle. In case of damage, you may have to spend a few lakhs to repair or replace the battery. To avoid such heavy expenditure, it is advisable to get battery insurance that provides long-term protection.
The introduction of electric vehicles into the market has been nothing short of a revolution. As people become more environmentally conscious and fuel costs rise, most are switching to EVs. While EVs offer multiple benefits, they also have challenges.
One of the biggest challenges of EVs is dealing with the battery. The battery is undoubtedly the heart of the EV. At the same time, it is also one of the most costly parts, usually accounting for 30% to 50% of a vehicle's total cost.
If your battery gets damaged, you'd want to know if your car insurance covers it. While standard EV insurance may have limitations, battery insurance may help cover certain aspects.
Many people believe that comprehensive insurance is meant to protect them in the long run. However, it is not the case with electric vehicles. Standard car insurance protects against fire or external accidents but excludes battery coverage.
Issues such as water ingress, overcharging, or manufacturing flaws will not be covered once the car is out of warranty. Having special battery insurance can be helpful in the long run.
EV batteries are prone to a wide range of risks, including charging errors and temperature fluctuations. With the help of battery insurance, you can avoid this risk and get necessary coverage in case the need arises.
You can't buy battery insurance as an add-on to your third party car insurance. To safeguard your vehicle's battery, it is advisable to review the policy terms and conditions before buying insurance.
While selecting the battery insurance, check if it covers the following:
• Battery component theft
• Accidental damage
• Damage because of voltage variation
• Performance loss
• Charging station malfunctions
Furthermore, you can also check for coverage of towing fees and roadside emergency assistance. For electric vehicle owners, roadside emergency assistance is a key factor to consider. The EV owners can be stranded on the road due to battery failure.
Having roadside emergency assistance would ensure that the necessary help arrives on time. It is important to clarify whether the insurance covers only repairs or also offers replacement benefits.
Apart from battery insurance, you can purchase specific add-ons with your comprehensive car insurance for added benefits. These add-ons will not only offer comprehensive protection for the battery but also for the EV as a whole.
Below are some of the key add-ons to choose for enhanced battery protection:
Zero Depreciation Cover: In the event of an accident, the zero depreciation add-on in car insurance ensures you receive full replacement cost for your car, without depreciation. The coverage amount you'll receive will be subject to the policy terms and conditions. Therefore, make sure to go through the same thoroughly. However, zero dep cover will not include the cost of consumables such as bolts, nuts, oils, and more.
Consumables: It is advisable to get a consumables add-on. The EV will require different consumables, such as nuts, coolants, lubricants, and bolts. In case of accidents, these will have to be replaced as well. Therefore, having consumables coverage can help significantly lower costs, as necessary coverage will be provided.
Roadside Assistance: Having an emergency 24*7 roadside assistance is extremely crucial for added safety. With this coverage, you will receive roadside assistance at any time if your vehicle breaks down. This covers basic emergency services such as towing, battery charging, or any mechanical difficulties that may arise.
Does EV Battery Depreciate?
When you purchase electric car insurance, you'll need to factor in EV battery depreciation. Since batteries are an important component of EVs, their extensive use will lead to depreciation year after year. The insurance company will settle the claim based on the depreciated value and not the actual cost.
To avoid any surprises with EV depreciation later, it is crucial to review the policy wordings regarding battery usage. Furthermore, thoroughly check the claim settlement procedure as well. Sometimes, EV insurance may include add-ons, such as a zero-depreciation battery cover, which can slightly reduce premium costs.
Although you'll have to pay a slightly higher premium for your battery insurance, it is worth having in the long run. An EV battery replacement can cost you a few lakhs. Therefore, having insurance significantly reduces the financial burden.
Based on the policy wording, even partial replacement could significantly help with out-of-pocket expenses. However, you'll have to weigh the premium against the car's age and usage patterns. If you've purchased a new EV or your EV has high mileage, buying battery insurance may be totally worth it.
While you purchase battery insurance for your electric vehicle, it is important to take a few preventive measures to maintain its health. How you maintain your electric vehicle significantly impacts how long it will last.
Below are some of the key tips to maintain the health of your electric vehicle battery:
Many electric vehicle owners make the mistake of using the wrong charging device. It is advisable to use the manufacturer's charger to avoid voltage fluctuations.
Always be careful and drive smoothly. While driving your EV, avoid harsh acceleration or sudden braking. These tend to add unnecessary pressure on the battery, further degrading its health and shortening its lifespan.
For your EV, avoid driving in extreme temperatures or leaving it parked in them. Doing so for long hours can affect the battery health and lower its lifespan.
Regular checkups and maintenance are crucial for the battery's health. The manufacturer should have provided you with a maintenance schedule; make sure to follow the same. Routine checkups help you gauge your vehicle's battery health. Furthermore, it also ensures that the other components are functioning properly.
Never overcharge your electric vehicle. Never charge your electric vehicle to 100%. It is better to avoid charging till 100% or discharging below 20%. Maintaining this helps prevent voltage stress. Therefore, it slows down battery degradation.
To learn more about maintaining electric vehicle battery health, read our blog, Electric Vehicle Battery Health Report.
If your electric vehicle stops working in the middle of the highway, you can always use roadside emergency coverage on your insurance. However, this will be applicable only if you have the cover.
In case of battery damage due to water ingress, does standard car insurance cover it?
No, standard car insurance will not cover battery damage caused by water ingress. For this, you will need the battery protection on your insurance.
It is crucial to regularly monitor the EV battery’s health to avoid costly damage in the long run. Getting battery protection ensures that your vehicle receives sufficient coverage in the long run.
Yes, some insurance companies offer car insurance for batteries as well as for EVs. However, it is important to thoroughly review the policy terms and conditions to make the right choice.
Standard electric car insurance covers EV batteries only to a certain extent. The coverage for the same varies significantly depending on the policy wording. The standard policy may cover external and accidental damage, but will exclude short circuits or water ingress.
The average lifespan of an electric battery often depends on its use. However, there is a chance it will fluctuate between 10 and 20 years.
Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.
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