Differences that exist in compulsory insurance for electric cars

As the electric car market continues to see a surge in new registrations daily, with the goal of achieving skyrocketing sales in the coming years, many drivers are making the switch from combustion engines to battery-powered vehicles. In this context, it’s essential to examine the significant disparities that exist in mandatory insurance coverage between these two types of vehicles.

In August 2023 alone, registrations of electrified vehicles witnessed a remarkable growth of over 60% compared to the same month in 2022. This shift in trend is underpinned by incentives for electric car purchases and ongoing and prospective restrictions on more polluting vehicles. Given the substantial mechanical distinctions between electric and gasoline-powered cars, a pertinent question arises: do these distinctions manifest in the insurance conditions as well?

electric car

Insurance differences

The primary distinction between insurance for electric cars and traditional combustion engine vehicles lies in the coverage. Electric car insurance policies tend to be more specific and specialized, tailored to the unique requirements of electric vehicle drivers.

For instance, electric vehicles typically have a more limited range compared to their gasoline or diesel counterparts, and they are also more susceptible to temperature extremes, which can further reduce their range. Consequently, insurance providers often place greater emphasis on coverage for running out of battery compared to the risk of running out of fuel.

Another significant difference is that, in most cases, insurance for electric or plug-in hybrid cars tends to be comprehensive. In contrast, traditional vehicle insurance offers various coverage types depending on the client’s needs, including third-party, extended third-party, and all-risk policies with or without deductibles.

Specific coverage for an electric

After discussing the key differences, it’s essential to understand the primary specific coverages typically included in insurance policies for electric cars:

Electric car

    • Recharging Coverage: One of the significant distinctions is that insurance for electric vehicles covers potential battery discharge situations. It also provides a towing service, transportation to a charging point, and, in some cases, its own recharging service. In specific scenarios, an assistance vehicle may come to your electric car’s location and recharge the battery, bypassing the need for a charging station.
    • Roadside Assistance Without Mileage Limit: Comprehensive coverage for mechanical breakdowns or battery depletion without any mileage restrictions is a crucial feature in electric car insurance policies.
    • Free Choice of Workshop: Insurance companies offer access to a network of workshops specialized in the repair of electric vehicles. The unique maintenance requirements of electric cars necessitate specialized repair centers, giving policyholders the flexibility to choose from these specialized workshops.
    • Battery Coverage in Accidents: Electric cars rely heavily on their batteries rather than traditional engines. In electric car and plug-in hybrid insurance policies, coverage extends to the electric car’s battery in the event of an accident, potentially saving you significant repair expenses.
    • Charging Cable Coverage: Beyond standard coverage, these policies often include protection for the charging cable, even in cases of theft. This coverage applies whether you park on the street or leave your car charging in a public area.

    These specialized coverages reflect the unique needs and considerations associated with electric vehicles, ensuring that policyholders are well-equipped to address any challenges or incidents specific to electric cars.