What Every EV Owner Should Look for in an Insurance Policy

An insurance policy is a mandatory requirement for most registered vehicles in Australia and overseas. This includes not just gas cars, but also electric vehicles and trucks.

While compulsory third-party (CTP) insurance offers acceptable terms and a decent payout for EV owners, getting a more comprehensive insurance policy should be a heavy consideration for car owners.

The reason is simple; an insurance policy helps financially protect you in case you and your car encounter an incident. That said, you would need to be specifically covered for that particular incident to be eligible for a payout.

With that said, there are many other things that EV owners should consider when choosing an insurance policy. It’s not the best idea to randomly pick an insurance provider and put your complete trust in them, more often than not.

If you’re in the market for an EV insurance policy, here are some things you should consider to be securely covered. Let’s get right into it.

1)  Comprehensive Battery Coverage

The first thing you should look into when selecting an EV insurer is the extent of their battery coverage.

Each insurer often outlines different terms in their contracts regarding their insurance policy, ranging from varying contract periods to repayment terms. But beyond that, your primary focus should be the extent of the battery coverage.

The battery is your electric vehicle’s heart—in other words, the most essential part of your vehicle. If it gets damaged or malfunctions in any way, you’ll need to replace or repair that core component. And replacing and repairing it can cost a couple thousand dollars, if not more.

As such, it’s important to ensure that the insurance policy for your EV has comprehensive battery coverage. With a good insurance policy, you don’t have to spend this much money out of pocket, as you’ll be amply covered by the insurance policy granted that you have enough coverage for its replacement.

Furthermore, some insurers also cover gradual battery degradation, which can help maintain the value of your EV longer. The right EV insurance policy can also cover for crimes made against your electric vehicle’s battery like theft or an intentional misdemeanour.

Given the high cost of a battery replacement, it’s a good idea to secure an EV insurance policy like ROLLiN’s EV insurance that can shield you from these hefty repair bills.

2)  Charging Set

Another crucial factor to look out for when purchasing an EV insurance policy is its coverage for its charging set.

An electric vehicle often comes with an adapter and a portable charger. Car owners also often have a home charging station to conveniently provide EV owners a chance to bring their car’s battery back to full at home.

After some time, it’s more than possible for a part of that charging station to be destroyed or rendered inefficient in some way, such as frayed cables or liquid exposure to the components. Any of these issues can cause a malfunction in the charging mechanism of the car.

Replacing a charger or reworking an entire charging set can set EV owners back thousands of dollars without proper insurance. Fortunately, it’s possible to remove that altogether by getting the appropriate insurance policy to cover it.

A good EV policy should include coverage for the entire charging kit, from the cables to the adapters. The coverage should also highlight the extent of the coverage.

Will the insurer send you a replacement charging adapter? Will it include a payout for charging services as they get repair work done on your broken EV home charging system? Ideally, the more coverage options there are, or the more applicable it is to your specific case, the better.

3)  Repair Network Access

You should also look at the repair network access your insurer may provide after signing a contract with them.

Some insurers are partnered with a wide network of repair facilities on a nationwide level. This perk allows you to easily drive or bring your car through an accredited repair facility without having to manually fill up any additional details on your insurer or other less essential information.

This additional level of convenience can be especially useful for EV owners in small townships where there are not a lot of repair facility options within close proximity. By picking an insurer that has ties with an authorised repair specialist, you can rest easy knowing that your car can easily be repaired and paid for by your insurer, granted that you’re eligible.

4)  Extent of Coverage

When picking a policy, it’s also important to get a good grasp of the entirety of its coverage. Typically, the more comprehensive your car insurance policy is, the better it is for you and your outcomes in case you encounter an accident or emergency.

That being said, it’s also a balancing act, as you’ll have to deal with a higher price the more add-ons you include in your insurance plan.

In any case, if you can afford the monthly premium, it’s almost always more financially strategic to get comprehensive car insurance. This is because it covers a wide range of scenarios. This includes car repairs in the event of an accident, theft and vandalism, fires, natural disasters, and accidental collisions.

Furthermore, it’s also a good idea to be aware of additional perks. Would the insurer provide roadside assistance at no cost, for instance? Knowing these things by reading the contract and terms can help you weigh in the value of each insurer, thus helping lead you to the right partnering decision.

5)  Reputation

An insurer’s reputation and trustworthiness are also something to keep in mind before signing any contracts.

You wouldn’t want to get insured by a company that’s renowned for making the claiming process difficult and overbearing. Instead, you’d want to partner with one that has a strong track record and a smooth and convenient claims process.

Typically, a good way to gauge the standard of the company is by looking into their customer reviews and ratings. A quick glimpse through a company’s reviews on third-party sites like Google My Business or their social media page can give you an understanding of what they can and cannot do.

By gauging multiple insurers and assessing their reputation, you can rest easy knowing that you have clear terms, an on-call customer support agent, and a fully comprehensive EV insurance policy that is designed to help you make life easier following an incident.

6)  Flexibility of Payments

Another thing to keep in mind before picking an EV insurance policy is its payment terms. EV insurance policies tend to be pricier than gas car insurance policies due to the shortage of replacement parts and fewer skilled personnel who can carry out repairs.

Regardless, an EV is still a fantastic purchase, and a comprehensive insurance policy with it is the cherry on top. A good provider will be able to adjust to the financial terms that you’re capable of handling, whether it’s monthly, quarterly, or annually.

Furthermore, it’s also important to consider your own financial and personal circumstances. If you own an electric vehicle but don’t have a lot of revolving cash flow, then it may be best to spread your repayment terms to cover more years. If you’d rather lower the total costs of the EV insurance, then you can request a shorter repayment period for lesser total fees.

In any case, having access to flexible payment terms that fit your budget can help you stay financially afloat. You may also consider finding ways to get EV insurance at a discounted price, like showing a good credit score or bundling policies with other company insurance policies.