40% of EV Repair Costs Not Covered
Specialized battery components can account for around 40% of the total vehicle repair cost, but new insurance policies and extended warranties are emerging to address the gap
Electric vehicle (EV) insurance policies are expanding to cover battery damage and other specialized components, with some policies offering add-ons for battery protection and roadside assistance. EV battery repairs can be among the most expensive costs after an accident, making it essential for owners to understand what their motor insurance actually covers.
Specialized battery components can account for around 40% of the total vehicle repair cost and may not be covered under standard coverage. This makes it crucial for EV owners to opt for additional protection through dedicated add-ons. Digit Insurance’s EV Shield add-on, for instance, covers the battery, electrical panel, vehicle charger, and charging cable against accidental damage or loss.
Bajaj General Insurance has launched two new motor insurance products, ProShield and VPAY 2.0, which offer protection for EV battery damage and other specialized components. VPAY 2.0 provides comprehensive protection for electric and hybrid vehicles, including traction battery replacement benefits as per policy terms.
Some EV manufacturers, such as TVS, Ather, Hero, Ola, and Bajaj, are offering extended battery warranties of up to eight years. The TVS iQube offers extended battery warranty options of up to eight years, while the Ather Rizta offers longer battery protection, which could be important for households that want one electric scooter to survive years of school runs, shopping trips, and daily commutes.
## Why it matters As electric vehicle adoption rises, battery-related repair costs are becoming an essential consideration for owners choosing motor insurance. The right add-ons can help bridge coverage gaps and reduce out-of-pocket repair costs. With specialized EV components requiring additional protection, it is crucial for owners to understand what their motor insurance actually covers and opt for extended warranties or specialized add-ons to ensure comprehensive protection.
The Hero VIDA VX2 offers Battery-as-a-Service (BaaS) alongside conventional battery ownership, with extended battery protection adding another layer of cost calculation for customers. Ola offers coverage of up to eight years on its S1 range, but buyers need to look beyond the headline number as conditions can differ by variant and plan.
## What happens next As the EV market continues to grow, insurance companies and manufacturers are likely to introduce more comprehensive policies and extended warranties to address the unique needs of EV owners. With the increasing adoption of electric vehicles, it is essential for owners to stay informed about the latest insurance options and warranties available to ensure they are adequately protected against costly repairs.
