EV Insurance: Key Add-ons You Shouldn’t Ignore

An electric vehicle (EV) insurance is specifically designed for EVs that could protect you in situations like flooding. Especially for EVs, it is essential to opt for a battery protection cover. It offers policyholders financial protection against the cost of repairs or replacement of batteries. The equivalent for an internal combustion engine (ICE) vehicle would be the engine protection cover.

Says Subhasish Mazumder, head- motor distribution, Bajaj Allianz General Insurance: “Additionally, many insurance companies offer V-Pay, a comprehensive product that includes all necessary add-on covers. It helps protect your vehicle fully without extra work. Hence, consider all these options and opt for a suitable insurance policy for your vehicle.”

It is important to remember that the EV’s electrical system, or damages arising out of short circuits, or power spikes from charging can lead to damage that regular car insurance might not cover. That’s because standard policies often don’t include problems caused by electrical or mechanical failure.

A Bengaluru tech professional and EV user said, “The rains have made me rethink daily driving. It’s not just about waterlogged roads—it’s the fear that one missed puddle might fry the battery. EVs are great, but they need better safeguards for our kind of monsoons.”

Similarly, a Mumbai-based EV user said that he recently bought an EV for a greener future, but every monsoon feels like a gamble. “One wrong turn into a flooded street and I could be looking at months of downtime and a massive repair bill,” he added. 

The Importance of Battery Protection

It’s important to remember that EV batteries are now often equipped with an IP67 or higher rating. Hence, it can stand in the water for an hour or so. However, it is advisable that in situations like waterlogged roads or where a car could risk getting submerged, the vehicle should be taken to a higher area.

“Unlike ICE vehicles, where even if water enters the engine, it can be salvaged if the vehicle is not cranked or force-started, an EV submerged beyond one hour in water cannot be salvaged. So, it is advisable to keep the cars on a higher ground,” says Mazumder.

“To avoid a big repair bill later, it’s a good idea to add a battery protection cover to your insurance. This extra layer of cover helps pay for any damage to the battery, motor, or related parts if something goes wrong due to waterlogging, short circuits, or charging issues. It can even cover things like a portable battery or charger if they get damaged,” says R Balasundaram, secretary general, IBAI.

Understanding The Difference: EVs Vs ICE 

EVs differ from ICE vehicles when it comes to post-flood recovery and insurance implications. While both may face flood-related damages, the cost and complexity of recovering an EV can be higher as EVs do not have an engine, and the battery is their core component.

“Insurance policies for EVs need more evaluation. Unlike ICE vehicles, where engine and mechanical parts are the primary concern, EVs involve electrical components that can be easily damaged by short circuits or water ingress. In a standard policy, these damages may fall under exclusions for electrical or mechanical failure,” says Balasundaram. 

This is where an EV-specific add-on cover becomes essential. It ensures that issues like power surges during charging or flood-related issues are not denied due to technical exclusions.

As we can see a surge of EVs in the market, insurers are now recognising these issues. However, with the right add-ons, EV owners can have more robust protection than what ICE vehicles require.