Stories
EV Insurance Claims Cost 14 Percent More Than Petrol and Diesel Cars: Policybazaar
- •Policybazaar data reveals that average EV claim severity is 14% higher than conventional petrol and diesel cars in the same price range.
- •Higher repair costs are driven by expensive battery systems, electronics, imported components, and limited repair infrastructure.
- •Monsoon-related risks push average EV claim severity up by 25% due to flooding and waterlogging issues.
- •Around 80% of EV owners opt for multiple add-on covers, with battery protection adoption surging from 51% to 70% in six months.
- •EV SUVs recorded the highest claim frequency, and Tier-II cities surpassed Tier-I centers in claim frequency rates.
Key Questions Answered
According to Policybazaar data, the average claim severity for electric vehicles is about 14% higher than for conventional petrol and diesel cars. Specifically, average EV claims stood at ₹41,543 compared to ₹36,185 for comparable internal combustion engine cars in the ₹10–15 lakh price range.
Monsoon-related risks cause average EV claim severity to rise to nearly ₹65,000, compared to ₹52,000 during the rest of the year. This represents a 25% increase driven by flooding, waterlogging, and adverse weather conditions.
EV SUVs recorded the highest claim frequency at 31 claims per 100 insured vehicles. Geographically, Tier-II cities recorded a higher frequency at 33 per 100 insured EVs than Tier-I cities, with East India registering the highest regional frequency at 41 per 100.
