EV insurance vs petrol car insurance: the basic rules are the same, but EVs may need battery and charger cover. See the key differences. Get a quote today.
EV insurance and petrol car insurance work in the same way. Both need at least third-party cover by law, and both can have a comprehensive policy with own damage cover. The main difference is that EV owners may be offered extra covers, such as battery cover, charger and cable cover, and home charging unit cover.
Let us compare the two side by side so you know what to look for.
What is the same in both policies?
The base rules do not change just because your car runs on electric power. Electric vehicles are insured in the same way as petrol or diesel vehicles.
- Third-party cover is compulsory. It is required for every vehicle under the Motor Vehicles Act, 1988.
- Third-party limits are the same. Injury or death liability is unlimited, and property damage liability is limited to ₹7.5 lakh.
- Personal accident cover for the owner-driver is ₹15 lakh, unless you already have a similar cover.
- Penalty for no insurance is the same: ₹2,000 and/or up to 3 months jail for a first offence, and ₹4,000 and/or up to 3 months for a repeat offence.
- Claim steps are the same: inform the insurer, get a survey, send documents, repair and settle.
If you want to learn the basics, read our post on third-party vs comprehensive car insurance.
What is different for an EV?
The difference is mainly in the parts of the vehicle and the covers on offer.
A petrol car has an engine, fuel tank and exhaust. An EV has a battery, an electric motor, a controller and a charging system. Because the parts are different, the risks and repair needs are different too.
Insurers may offer these extra covers for EVs. Terms differ by insurer, so check your policy wording.
- Battery cover
- Charger and cable cover
- Home charging unit cover
You can read more about the battery in our post on EV battery cover.
Engine cover vs battery cover
For a petrol car, a popular add-on is engine protection. It helps with engine damage from water ingress, which is not covered under a normal policy. For example, if you start the engine in a flooded area, the claim can be rejected unless you have this add-on.
An EV has no engine in the same sense. So the focus moves to the battery and the electric parts. Ask your insurer how water damage and battery damage are treated in the policy. Our post on engine protection cover explains the petrol side in detail.
Add-ons that work for both
Many add-ons are common to both types of vehicle. Terms differ by insurer.
- Zero depreciation: the insurer does not cut depreciation on replaced parts like plastic, rubber, glass and metal, as per terms. It is usually for newer vehicles, often up to around 5 years old.
- Roadside assistance: help when the vehicle breaks down.
- Return to invoice: may help in case of theft or total loss.
- Consumables cover: for small items used in repair.
- Key and lock replacement
- NCB protection
- Tyre protection
- Daily allowance
Only a few add-ons are special to EVs. So most of your decisions will feel the same as for a petrol car. See our zero depreciation cover page for more.
IDV and premium: what to watch
IDV (Insured Declared Value) is the market value of your vehicle agreed with the insurer. It is roughly the maker's listed price minus depreciation for the vehicle's age. It is the most you can get for theft or total loss.
Your premium depends on factors such as the vehicle's value, age, cover type and add-ons. We cannot say that an EV premium is always higher or lower than a petrol one. The best way is to compare real quotes for your vehicle.
Things to check for an EV owner
Before you buy, ask these questions:
- Are the battery, charger and cables covered, and with what limits?
- Are there network garages near you that can repair EVs on a cashless basis?
- Does roadside assistance help with towing to a charging point?
- Which add-ons can I choose for my vehicle's age?
- What is the compulsory deductible, and what voluntary deductible should I pick?
In a cashless claim, the insurer pays the network garage directly. In reimbursement, you pay first and claim back with bills. Garage support for EVs may differ by city, so ask before you buy.
NCB works the same way
No Claim Bonus (NCB) is a discount on the own-damage premium for claim-free years. The usual slabs are 20% after 1 year, 25% after 2, 35% after 3, 45% after 4, and 50% after 5 or more claim-free years. NCB belongs to the owner and is usually kept if you renew on time. It is lost if you make a claim in that year. Learn more at no claim bonus.
Which one should you choose?
Choose the policy that fits your vehicle, not the fuel type. For both, a comprehensive plan is usually safer than only third-party. For an EV, also look at battery and charger covers.
See our electric vehicle insurance page for EV options, or visit our car insurance page for petrol and diesel cars. You can also get a quote any time.
Rules and terms can change and differ by insurer. Your policy document is final.
FAQs
Is EV insurance mandatory like petrol car insurance?
Yes. Third-party insurance is compulsory for every vehicle on Indian roads, including EVs.
Do I need a different policy because my car is electric?
Not a different type, but you may choose extra EV covers. Compare the add-ons offered.
Does comprehensive cover include the battery?
Own damage cover may include it as per terms, but limits and exclusions can apply. Check the policy wording.
Can I use a petrol car policy for my EV?
No. Your policy must be made for your vehicle, with correct details such as the vehicle type and value.
This guide is for information only. Rules and policy terms can change, and the policy document is final. Please read your policy wording.