Stories
Electric Cars More Expensive Than Petrol And Diesel Due To High Insurance Claims
- •Average insurance claims for electric cars are 14 percent more expensive compared to petrol and diesel cars.
- •High costs are driven by expensive battery systems, costly electronic parts, and limited repair infrastructure.
- •Monsoon season sees a 25 percent increase in claim severity, with average EV claims reaching nearly 65000 rupees.
- •Around 80 percent of EV owners are opting for additional insurance covers like battery protection and zero depreciation.
Key Questions Answered
According to Policybazaar data, average insurance claims for electric vehicles are 14% more expensive than those for traditional internal combustion engine cars. For instance, for cars priced between 10 to 15 lakh rupees, the average claim for an electric car stood at 41,543 rupees, compared to 36,185 rupees for petrol and diesel cars.
The primary drivers of expensive EV claims are the costly battery systems and complex electronic parts. Additionally, imported components, specialized labor, and a limited repair infrastructure further drive up overall repair costs, with battery replacement alone accounting for up to 40-50% of a car's total price in some models.
During the monsoon season, the average claim for an electric vehicle increases significantly, reaching nearly 65,000 rupees compared to 52,000 rupees during other times of the year. This 25% surge in claim severity is primarily driven by floods, severe waterlogging, and bad weather.
