Electric vehicles, or EVs, are a great alternative to traditional internal combustion engine (ICE) vehicles that are becoming increasingly popular these days. As with any car, insurance is crucial to ensuring its overall safety and roadworthiness.
However, the cost of insuring an EV can be expensive, given the technology that comes with it. The process of insuring EVs is also not as straightforward as insuring a petrol car because there are several factors that owners need to consider over others. Let us walk you through some of them to help you make informed decisions.
Vehicle Value
The cost of auto insurance for an electric vehicle is influenced by its value. Since EVs can be more expensive than their gasoline counterparts, their insurance premiums can be more expensive. Within EVs, the specific make and model of the vehicle also influences how much owners have to pay for insurance.
Battery Replacement
The batteries in electric vehicles are a significant part of their value and can be expensive to replace. So, it is important to consider policies offering battery replacement coverage or degradation over others. Vehicle insurance pioneers such as Etiqa and Liberty Insurance, already offering customised protections for EVs in Malaysia, can be considered.
Charging Infrastructure
Another factor that should be considered when insuring EVs is the availability of charging infrastructure, which can vary depending on location. Because charging is the only way to keep the vehicle running, some insurers like Etiqa car insurance offer coverage for charging equipment and damage to your EV while charging.
Under its complimentary EV Home Charger Coverage for newly registered Electric Vehicles, owners can enjoy reimbursements of up to RM12,000 to replace or repair their new EV home charger in case of loss or damage due to unforeseen circumstances.
Discounts and Incentives
In many developing countries, EVs are being promoted over traditional petrol cars in the global effort to make greener choices. So, it is no surprise that insurance companies offer discounts for EV owners owing to the environmental benefits associated with their cars.
Hence, looking for coverage options that provide special discounts and government incentives that can lower the cost of EV ownership is highly recommended, as these also determine your insurance premium.
Maintenance and Repairs
Last but not least, the maintenance and repairs of EVs, though they may seem unnecessary, should be included when purchasing insurance. Although EVs often require less maintenance than traditional vehicles, bear in mind that repairs can be more expensive due to the specialised parts that need specialist repair. So, you must consider an insurance plan that also includes protection for these repair costs.
Bjak is one of Malaysia’s biggest insurance comparison websites, offering policies from over 10 brands. Get your free insurance quote from Bjak today!
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