Stories
Electric Cars Prove More Expensive Than Petrol And Diesel Cars
- •Policybazaar data reveals that average insurance claims for electric cars are 14% more expensive than petrol and diesel cars.
- •The higher cost of EV claims is primarily driven by expensive battery systems, costly electronic parts, imported components, and limited repair infrastructure.
- •About 80% of EV owners take at least two add-on covers, with the share of people taking battery protection cover increasing from 51% to 70% in six months.
- •During the monsoon season, the average insurance claim for an EV surges by about 25% to reach around ₹65,000 due to waterlogging and flooding.
- •SUVs recorded the highest claim frequency among EVs at 31 per 100 insured vehicles, while Tier-2 cities saw higher claim frequencies than Tier-1 cities.
Key Questions Answered
According to Policybazaar data, average insurance claims for electric vehicles are 14% more expensive than those for petrol and diesel cars. For cars priced between ₹10 to ₹15 lakh, the average EV claim is ₹41,543, compared to ₹36,185 for internal combustion engine vehicles. This cost difference is primarily driven by expensive battery systems, electronic components, and limited repair infrastructure.
During the rainy season, the average insurance claim for an electric vehicle jumps to around ₹65,000, which is a 25% increase from the rest of the year's average of ₹52,000. This rise in claim severity is mainly attributed to weather-related issues such as severe flooding, waterlogging, and bad weather.
The share of EV owners opting for battery protection cover has risen from 51% to 70% over a six-month period, with about 80% of owners taking at least two add-on covers. This is because battery replacement costs can account for up to 40-50% of the car's total price, making specialized coverage essential for mitigating high repair expenses.
