Electric Car Insurance: What You Need to Know

Electric Cars Are Becoming More Popular — But Do You Know How to Protect Them?

Electric vehicles (EVs) are no longer just a trend, but are starting to dominate the automotive market. According to Jakarta Globe data EV sales in Indonesia increased by nearly 300% between 2022 and 2023. Besides being environmentally friendly, they also have lower operating costs in the long term.
 

However, when it comes to insurance, electric cars require a different approach. High-tech batteries, software, and charging systems present new risks that aren't necessarily covered by conventional insurance policies.
 

Now that we understand the importance of protection for electric cars, let's take a closer look at the differences in insurance treatment between EVs and conventional cars.

Unique Risks of Electric Cars That Must Be Protected

1. Battery Damage or Failure

The battery is the most expensive component. A small failure can result in a significant expense, requiring a complete replacement rather than just repair.

2. Fire while charging

Overheating can cause fires, especially if the charger is not certified or there is an electrical fault during charging.

3. Software Error

Damage to the digital system can render the vehicle inoperable, and diagnostic and repair costs are also high.

4. Special Evacuation or Towing

Electric cars can't be towed like regular cars. You'll need a special flatbed to avoid damaging the electric motor.

5. Damage to the Charger at Home

If you have a private charging station, damage from a short circuit or lightning could impact your car and property.
 

For optimal protection, it's also important to understand how insurance policy structures are tailored to the characteristics of EVs compared to conventional cars.

Electric Car Insurance Premium and Benefit Simulation

To help you estimate the investment value of electric car insurance, here is a simulation of benefits and premium costs based on vehicle class:

Disclaimer: The figures above are simulations for educational purposes. Actual premiums may vary depending on vehicle age, region, and insurance provider.

However, cost alone isn't enough. You also need to know the key features required in an EV policy to maximize benefits.

What to Look for in an Electric Car Insurance Policy?

Disclaimer: The above information is general and may vary depending on the policy and insurance provider. Always read the full policy terms and conditions to understand coverage limitations and exclusions.

To make the search process easier, here are some important tips when choosing car insurance specifically for electric vehicles.

Tips for Choosing Car Insurance for Electric Vehicles

1. Choose an Insurance Provider that is Familiar with EVs

Companies like Oona understand the unique needs of EVs and have certified repair shop partners.

2. Make sure the battery is clearly covered

Ask whether damage due to age, overheating, or short circuits is also covered.

3. Check the Reputation of Partner Workshops

Workshops for electric cars must have certified technicians and special diagnostic tools.

4. Check the Protection Limit for Electronic Components

EV sensors are very expensive. Make sure your policy covers damage to the electronic system, not just the body.

5. Compare Premiums and Features

EV insurance premiums can be higher, but they should be worth the extra protection you get.

6. Choose Digital Insurance Like Oona

The claims process can be done online, faster and more transparently.
 

It's not just consumers who are adapting. The insurance industry is also beginning to transform to meet the challenges and needs of electric vehicles.

Market Trends: How Are EVs Changing the Insurance World?

As the electric vehicle population increases, the insurance world is also undergoing a transformation. Some emerging trends include:
 

• Risk Calculation with Telematics Data
  Some insurance companies calculate premiums based on EV users' real-time driving behavior.
  
  

• Digital Inspection via App
  Vehicle inspections can be carried out without having to come to the branch office.
  
  

• Integration with EV Dealers
  Direct vehicle purchases come with technology-based insurance protection options.
   

According to McKinsey (2023), the global automotive insurance industry is predicted to massively adapt EV-specific products in the next 3–5 years.
 

Before actually purchasing a policy, it's a good idea to check the following things to ensure the claims process runs smoothly in the future.

Checklist: What to Check Before Applying for Electric Car Insurance

Disclaimer: This checklist is intended as a general guide. Coverage details and policy provisions may vary between insurance providers. Always review the policy documents thoroughly before purchasing.
 

With all the points above, you now have a more complete understanding of choosing the best protection for your electric vehicle.

Conclusion

Electric cars are indeed sophisticated and environmentally friendly, but they also have their own vulnerabilities. Choosing car insurance that truly understands the risks of electric vehicles is crucial to avoid significant losses in the event of an accident.
 

With Oona car insurance, you can choose coverage that includes batteries, software, and even special towing — tailored to your EV’s needs. Check out Oona Electric Car Insurance packages now