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Car Insurance for Electric Vehicles

Publication date on 09 January, 2020, EST READ TIME: 5 MIN

Now-a-days, there is a lot of buzz around EVs or electric vehicles. While EVs have been around for some time now, due to some serious push from the government, they are in limelight again. An EV or electric vehicle is one that relies on one or more electric motor(s) which are powered by electricity generated or stored by batteries or a fuel cell.

Most electric cars operate on the power of the battery, while some work on hybrid technology as well. These hybrid cars have a petrol or diesel engine as the primary power source and a battery to supplement the same. These are usually known as plug-in hybrid cars. Yet another type of electric car creates electricity from hydrogen gas and uses the same to drive the car.

One of the prime reasons why electric cars are gaining traction is the lack of any emissions. They emit almost no to a negligible amount of greenhouse gases and do not contribute to air pollution as well. Should you use renewable energy for recharging your EV, the emissions are zero.

Need for Car Insurance

Irrespective of whether you drive an electric car or a traditional internal combustion engine car (petrol or diesel-powered), you would need a car insurance policy. A car insurance policy offers you financial assistance and protection at the time of any damages that arise out of accidents. It also offers coverage against liabilities for the death, injuries or damages to other individuals or properties involved in the accident.

The need for Car Insurance Policy

Here are some of the major reasons why you must buy a car insurance policy at the earliest if you do not already have one.

  • Legal Mandate

    The Motor Vehicle Act governs the laws related to motor vehicles in the country. The Act mandates that all vehicles have vehicle insurance to ply legally on the public roads. If you fail to do so, the traffic police department can penalize you with hefty fines. A more recent amendment to the Act now mandates three years of third-party liability policy for every new car purchased.

  • Third-Party Liability

    Car insurance almost always consists of a third-party liability insurance at the minimum. In the case of an accident claim involving other drivers, pedestrians or properties, you will have to shell out for the injuries or damages from your pocket. However, with a third-party liability cover, you do not have to worry about any financial or legal liabilities.

  • Protection Against Damages

    In the event of an accident, your car might also be at the receiving end of an accident. Anyone who has some experience with car repairs would know that they do not come cheap. Whether the damage to your car is due to your mistake or someone else’s mistake, a car insurance policy will take care of the repairs.

  • Personal Accident Cover

    Car insurance policies also offer personal accident cover for the insured. This component comes into the picture if the insured passes away after an accident or incurs permanent damage. The nominees of the policy will receive the sum assured which can offer some financial assistance to the family.


A car insurance policy is a must, whether you are driving petrol, diesel, CNG or electric car. By paying a small premium, you can buy protection against unforeseen events in the future. To help consumers select electric vehicles, the IRDAI has updated the policy premiums for EVs in the country. A third-party liability policy for an electric vehicle will now be at a 15% discount price when compared with similar non-EV cars.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before going ahead with the sales.

This blog has been written by

Mukesh Kumar | Motor Insurance Expert | 36+ years of experience in insurance industry

A veteran in the insurance industry, Mukesh Kumar has the expertise of handling various functions like Business Development, Underwriting, Claims, Human Resources, Quality Management and Marketing. With rich knowledge of the industry, he loves to share his views on topics of insurance sector and takes special interest in educating people on advantages of having insurance.

Mr. Mukesh Kumar recommends "getting your two wheeler insured from HDFC ERGO, a brand serving more than 1 crore+ customers. With overnight repair services and more than 6,800+ network garages, you can be assured of help in event of any damage to your vehicle".

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