We know that most people choose electric vehicles (EVs) due to their lower emissions and sustainability. And that’s the case with 71% of Indians right now. However, as per ICICI Lombard General Insurance research, battery charging time is the major concern for EV owners in India.
The study focuses on how the rising demand for EVs is changing the market for auto insurance. The report highlights new market trends in EV insurance, evolving customer preferences and potential hazards based on a survey of more than 500 EV owners in major cities.
The study indicates that the EV revolution is mostly driven by environmental concerns, with 77% of EV owners identifying lower emissions as their main driver. Younger drivers are more environmentally conscious (81%). Furthermore, 73% of respondents see higher fuel prices as a key incentive for shifting to electric vehicles.
Issues Hindering the Rise of EVs
Concerns about the infrastructure for battery charging are still common despite the EV hype. 61% of EV owners said their primary concern is battery charging time. It is succeeded by a restricted driving range (54%) and an inadequate number of charging stations (52%).
EV owners in Bangalore, Chennai, and Mumbai mostly worry about battery charging time. In Delhi and Hyderabad, limited driving range is a prevalent problem. Interestingly, first-time EV buyers, in particular, worry about high upfront costs.
Demand for EV-Specific Insurance
According to the survey, 91% of people are aware of EV-specific auto insurance. Particularly those who own cars show a great awareness of the necessity for specialist coverage.
Cost and claim settlement experience are important factors to take into account while selecting insurance. Additionally, customers take an interest in services like battery replacement and round-the-clock roadside help.
Most individuals want coverage for battery replacement and round-the-clock roadside assistance for EV-related problems in their insurance policies. According to the report, people are even willing to pay an additional premium for the same.
Also, just 53% of customers know about that charging station damage coverage. It thus emphasizes the necessity of better communication regarding the matter.
The survey stresses how crucial it is to inform customers about the advantages and complications of electric vehicle insurance. Targeted education campaigns can help people understand the insurance details as EV ownership rises.
Wrapping Up
Sheena Kapoor, Head Marketing, Corporate Communications & CSR, ICICI Lombard, said:
We have been observing a mindset shift from consumerism to minimalism and increased accountability towards environment conservation.
At ICICI Lombard, we are addressing these trends by developing innovative insurance solutions tailored to meet the unique needs of EV owners. We provide comprehensive solutions covering traditional risks and specialized benefits like battery replacement and 24/7 roadside assistance.
India plans to achieve net zero status by 2070. Therefore, there will undoubtedly be an increase in EV mobility. According to studies, by 2030, 70% of all cars will be electric.
