Electric Vehicles (EVs) are revolutionizing Indian roads - and so is the way their insurance works.
As more drivers in Hyderabad, Telangana switch to EVs for performance and sustainability, insurers are adapting with new coverages, discounts, and add-ons designed specifically for electric cars.
This guide breaks down everything you need to know about EV car insurance - how it’s different from regular policies, what it covers, how much it costs, and how to lower your premium.
Whether you already own an EV or plan to buy one soon, this article will help you understand how to protect your car and battery with the right coverage.
Why EV Insurance Is Different
Electric vehicles use high-value lithium-ion batteries and advanced electronics, which change how insurers calculate risks and claims.
| Key Difference |
EV vs. Petrol/Diesel Cars |
| Powertrain |
Battery + electric motor instead of engine/fuel system |
| Repair Cost |
Higher due to specialized components |
| Premium |
Slightly higher OD (Own Damage) component |
| Add-ons |
Include Battery Protect and Charger Cover |
| Discounts |
IRDAI-approved “green discount” on TP premium |
Types Of Coverage For EVS
Just like conventional cars, EVs can have Third-Party or Comprehensive insurance.
Third-Party (TP):
- Mandatory under law.
- Covers injury or property damage to others.
- Doesn’t protect your EV or battery.
Comprehensive (Recommended):
- Covers theft, fire, accident, and natural disasters.
- Includes both Third-Party + Own Damage cover.
- Allows EV-specific add-ons for full protection.
Popular Add-Ons For Electric Vehicles
| Add-on |
Description |
Why It Matters |
| Battery Protect Cover |
Covers damage, degradation, or short-circuit in battery pack |
EV batteries can cost ₹2–6 lakh to replace |
| Charger and Cable Cover |
Protects home/public charging accessories from damage or theft |
Replacements can cost ₹20,000+ |
| Return to Invoice (RTI) |
Pays full invoice value if EV is stolen or totaled |
EVs depreciate faster; ideal for new cars |
| Zero Depreciation |
Full claim without depreciation cuts on EV components |
Batteries and plastic parts depreciate quickly |
| Roadside Assistance (EV-specific) |
Includes flatbed towing, battery recharge, and emergency pickup |
Essential in cities where EV charging stations are sparse |
Premium Comparison - EV Vs Petrol Car
| Car Type |
Avg. IDV (₹) |
Avg. Annual Premium (₹) |
EV Discount |
| Small Hatchback |
₹7,00,000 |
₹10,500 |
5% |
| Mid-size Sedan |
₹12,00,000 |
₹17,000 |
7.5% |
| Compact SUV |
₹15,00,000 |
₹22,000 |
10% |
(IRDAI offers lower third-party premiums for EVs compared to petrol/diesel cars.)
How To Reduce EV Insurance Premium
- Claim your “Green Vehicle Discount.”
IRDAI provides TP premium rebates for EV owners.
- Install certified anti-theft or telematics devices.
Some insurers give up to 5% extra discount.
- Bundle policies (EV + Home).
Get multi-policy discount from the same insurer.
- Compare online across EV-friendly insurers.
Use PolicyBachat to check live quotes from HDFC ERGO, ICICI Lombard, Bajaj Allianz.
- Opt for higher voluntary deductible if you’re a safe driver.
Major Insurers Offering EV Cover
| Insurer |
Key Features |
EV Add-ons |
| HDFC ERGO |
Battery replacement & charger protection |
Battery Protect, Zero Dep, RSA |
| ICICI Lombard |
Green discount, instant policy |
Battery & Charging Kit Cover |
| Tata AIG |
Advanced telematics discounts |
Zero Dep, Engine/Battery Protect |
| ACKO |
Paperless claims, affordable rates |
Charger Cover, RTI |
| Bajaj Allianz |
24×7 RSA with EV roadside recharging |
RSA, Zero Dep, Battery Protect |
Claim Process For EVS
- Report damage immediately.
Contact your insurer or PolicyBachat within 24 hours.
- Avoid self-repairing the battery or electronics.
Unauthorized handling can void coverage.
- Provide photos/video of charging system & damage.
- Get inspection done via authorized EV service center.
- Settlement - insurer covers approved repair/replacement cost after depreciation and deductibles.
Local Insights For Hyderabad
- Top EV models insured: Tata Nexon EV, MG ZS EV, Hyundai Kona EV.
- Average EV claim size in Hyderabad: ₹1,25,000.
- % of EV owners opting for Battery Protect: 45%.
- Top 3 insurers with EV-ready networks: HDFC ERGO, ICICI Lombard, Bajaj Allianz.
- Avg. turnaround time for EV claims: 5–7 days.
Future Of EV Insurance In India
- IRDAI encouraging green vehicle incentives.
- EV-only policies expected with dynamic premium tracking (telematics).
- Battery-as-a-Service (BaaS) model to reshape premium structures.
- OEMs (like Tata, MG, and Hyundai) partnering directly with insurers for bundled EV policies.
- Expect personalized “usage-based” pricing - pay only for kilometers driven.
FAQs
Is car insurance mandatory for EVs?
Yes, just like petrol/diesel cars - Third-Party is compulsory.
Are EV premiums cheaper?
Third-Party is slightly cheaper; Own Damage may cost a bit more due to battery.
What happens if my EV battery is stolen?
Covered under Battery Protect add-on or comprehensive policy.
Can I claim if charger cable burns or breaks?
Yes, with Charger & Cable Cover.
Do all insurers offer EV cover?
Most leading insurers now do - check PolicyBachat for live quotes.
Does Zero Dep apply to EVs?
Yes, covers depreciation on EV components.
Is battery damage due to overcharging covered?
Only under specialized Battery Protect add-on.
What’s not covered in EV insurance?
Gradual battery wear, normal degradation, or use of uncertified chargers.
How long does EV claim settlement take?
3–7 working days depending on availability of parts.
Can I switch insurer for my EV policy?
Yes, with full IDV and NCB transfer.
Do EVs get tax or insurance benefits?
Yes, GST benefits and IRDAI-approved green rebates.
Are electric scooters covered too?
Yes, separate EV two-wheeler policies are available.
Does water damage void battery cover?
Covered if you have Engine/Battery Protect add-on.
Can I add roadside recharging to RSA?
Yes, available in metro cities with EV networks.
Do EV warranties affect insurance?
No, but it helps validate claim faster for manufacturer faults.
Customer Reviews
- “Battery Protect saved me ₹40,000 after short-circuit claim.” - Ravi P., Delhi
- “Loved how PolicyBachat shows EV-friendly insurers clearly.” - Neha M., Bengaluru
- “Zero Dep + Charger Cover combo worked great.” - Arjun T., Pune
- “ICICI Lombard handled EV claim super fast.” - Sneha D., Chennai
- “I use ACKO for my Nexon EV - cheap and reliable.” - Kavita R., Hyderabad
- “Finally, a simple EV insurance guide that made sense.” - Vikram T., Mumbai