Tesla’s entry into India is doing more than just stirring up excitement among car enthusiasts, it is giving the insurance industry a nudge too. With electric vehicles bringing in a different set of risks and needs, insurers are now rolling out customised products that are catering the coverage of Tesla vehicles into their motor insurance policies.
So far, two insurers, namely, Liberty General Insurance and Zurich Kotak General Insurance, have introduced plans specifically designed for EV owners, including Tesla customers. These are not your usual policies with basic third-party and own damage cover. These policies go deeper, trying to plug the real gaps that come with driving and maintaining an electric car in India.
Insurance For EVs
Unlike regular vehicles, electric vehicles are not just another car with a different fuel source; rather, they come with high-voltage batteries, advanced electronics, charging units installed at home, and motors that will respond differently should any issue arise.
The biggest pain point for EV owners is the battery itself, which typically cost a lot in case of repair or change. It is not only the most expensive component of an EV but also the most sensitive. Most buyers worry about long-term performance, degradation, and repair or replacement costs.
This is where EV insurance covers come in.
What’s on Offer for Tesla Owners
The insurers across India are set to announce customised insurance products for the Tesla owners, now that the vehicle is being sold in India. Liberty General Insurance, for instance, has launched a set of EV-specific add-ons. One covers home charging equipment like cables and wall-mounted units. Another focuses solely on battery protection. There is also a comprehensive roadside assistance feature that includes things like emergency charging and towing - covers that are thought through from an EV perspective.
“Tesla’s entry into India represents far more than the arrival of a global automotive icon, it marks the beginning of a new era of mobility," says Parag Ved, CEO and Whole-Time Director, Liberty General Insurance Ltd. "Our EV-specific offerings are not retrofitted; they are thoughtfully engineered from the ground up to complement the electric driving experience. Whether it’s safeguarding high-voltage batteries, offering roadside recharging, or simplifying claims through our digital-first platform, we have reimagined insurance for a more intuitive, elevated future," he added.
Tesla buyers can also opt for add-ons like full depreciation cover, protection for consumables, EMI support, and personal belongings cover, features that are becoming more relevant as cars get more digital and repairs get more expensive.
Zurich Kotak General Insurance, meanwhile, has introduced EV Protect, a separate add-on under its existing car policy. It covers components like the motor, battery management system, and even fixed chargers against water damage, power surges, or theft. The offering is available for all EV owners but has been fine-tuned keeping high-end electric vehicles like Tesla in mind.
Says Agarwal, Managing Director and Chief Executive Officer at Zurich Kotak General Insurance, “We are witnessing a shift in the customer preferences towards more sustainable transport options like electric mobility, which is reshaping the automobile market dynamics.”
The coverage for electric vehicles is still evolving, and most products are still in the add-on phase rather than being fully integrated. However, the shift is happening to insure EVs as a whole, and with the presence of Tesla EVs, which are known globally for their focus on tech and safety, is set to push Indian insurers to rethink how they approach electric mobility.
As more data on EV repairs and performance would become available in coming days, pricing and offerings will also likely change. For now, EV owners or those eyeing to get their hands on one - Tesla or not - should take a closer look at what their insurance actually covers.
