By Rakesh Goyal, Director of Probus Insurance Broker
The EV insurance market is proliferating, and the number of EVs on the roads is expected to increase from over 10 million in 2022 to 300 million by 2050. The emergence of new technology has made it possible for more customers to buy EVs, which implies that there is going to be a huge demand for EV insurance as well.
However, you should not just sign up for any EV policy only. You need to know about all add-ons that you might need to choose an appropriate one from among them.
What are Add-ons?
Add-ons are the little extras that come with your car insurance policy. These extras can be anything from a breakdown cover to liability cover, but they’re often chosen based on personal preference or budget.
Choosing add-ons for your EV insurance is not a simple process. There are certain things to keep in mind while you choose your add-ons, and you should do your research well before committing to any of them.
When doing so, you need to consider the following:
- Make sure you have an ample understanding of how each add-on works. This will help you choose the most suitable one for your needs.
- Get a clear picture of what the add-on covers and when it should be used in case of a mishap
- Choose an add-on that fits your budget and preferences.
Here is a list of the most common add-ons for EV insurance:
Zero-depreciation Add-on
Zero-depreciation add-on is beneficial because it allows you to receive the amount of your claim without any depreciation deductions. It is an essential add-on because it means that once you’ve paid off your loan on an EV, you won’t have to pay for anything else when it comes time for maintenance or repairs down the line!
Engine protection Add-on
The engine protection add-on for your EV will cover all the costs for engine damage and offers a protective safeguard against the damages that happen due to engine breakdown. It can help you save thousands in repairs or replacement costs.
Battery protection Add-on
Battery costs are an important factor in purchasing an EV. It is always recommended to purchase EV insurance with separate add-on covers for the battery to ensure it remains protected.
Motor protection Add-on
Motor protection is one of the most common add-ons offered by most EV insurance providers, and it’s a great way to protect yourself and your EV! It provides you with financial compensation in the event that your vehicle sustains damage due to a crash with another vehicle or object while on public roads.
Conclusion
Choosing the right add-ons for your EV insurance can be a daunting task. There are great options to pick from, and it can be challenging to know which ones are best for you. One way to turn this process easy is to keep in mind what you really need. Finally, it is important that you take time out and compare various providers before making a choice about which one covers your requirements best.
Based in New York, Stephen Freeman is a Senior Editor at Trending Insurance News. Previously he has worked for Forbes and The Huffington Post. Steven is a graduate of Risk Management at the University of New York.