EV Insurance Costs 14% More: Is Your Premium Fair?

Electric vehicle insurance claims cost 14% more than petrol or diesel cars because EV batteries and electronics are expensive to repair and very few garages can fix them. If you own or plan to buy an EV, your insurance premium will likely be higher — and here's what you need to know before you renew.

Here's what happened: Insurance claim payouts on electric vehicles run 14% higher on average than equivalent petrol or diesel cars, driven by costly battery packs, sensitive electronics, and scarce authorised repair centres.. EV batteries alone can represent 30-40% of a vehicle's value, meaning even a moderate collision can trigger a disproportionately large claim compared to a conventional car of similar on-road price.. Limited EV-trained mechanics and authorised service networks force insurers to pay premium labour rates, pushing up the cost of every repair and ultimately reflecting in higher renewal premiums for owners..

What you should do: Compare EV-specific own-damage premiums across at least 3 insurers before renewing — rates vary significantly because insurers are still pricing EV risk differently from each other.. Check your policy wording for a battery depreciation clause — if present, negotiate a zero-depreciation add-on cover that pays full battery replacement cost, not a depreciated amount.. Opt for a higher voluntary deductible (₹5,000-10,000) to reduce your annual premium, but only if you have that amount set aside as an emergency buffer for small repairs you will self-fund..

Some insurers now offer EV-specific add-ons covering roadside charging assistance and tyre damage from battery weight — bundle these during purchase, not renewal, when insurers offer better pricing.

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