EV owners alert! Insurance claims for repairs may cost more than for petrol, diesel cars — here's how

Insurance claims for repairing electric vehicles cost owners 14% more on average than for comparable petrol and diesel four-wheelers, according to the latest data released by insurance marketplace Policybazaar.

The average claim cost for an electric car stood at ₹41,543, compared with ₹36,185 for an internal combustion engine (ICE) car. The comparison covers vehicles priced between ₹10 lakh and ₹15 lakh in their first three years of ownership, excluding large-loss claims.

EV insurance claims have become pricier during the monsoon due to the impact of flooding, waterlogging and adverse weather. Average claim severity rose to nearly ₹65,000 during this period, 25% higher than the ₹52,000 average recorded during the rest of the year, as per the data.

Why are EV insurance claims more expensive?

The higher claim severity for electric cars is due to costlier battery systems, complex electronics, imported components and limited EV repair infrastructure, that make repairs and replacement more expensive.

Policybazaar data shows that battery is among the most expensive components of an electric car. Depending on the model, replacing it can cost as much as 40-50% of the vehicle's total price.

However, repair costs extend beyond the battery and motor. Components such as battery cooling systems, advanced electronics and infotainment systems can also be expensive to replace.