Why you need EV insurance and how to choose one

As our government, businesses and society gear toward a sustainable future, many are turning to electric vehicles (EVs) to play a part in their decarbonising journey. Owning an electric car is certainly a new and exciting experience, but you may wonder, “How do I insure and protect my new EV?”

Read our guide below to understand what EV insurance is and how to choose one that meets your coverage needs.

What is EV insurance?

Similar to a regular car insurance plan, electric vehicle insurance is a legal contract between the insurance provider and the EV owner. It safeguards the electric car owner against any unexpected incident resulting in injury and damage. One should not overlook the importance of differentiating various vehicle insurance policies to know which plan is EV-specific.

Why does EV insurance cost more than their conventional counterpart?

Electric cars are more expensive to be insured for five reasons:
● The market price of electric cars is generally higher than petrol cars.
● Electric cars are more vulnerable to getting damaged in accidents due to having many sensor-based applications.
● Electric car parts vary in size and are sensory-based. It is recommended to have them replaced rather than repaired when damaged.
● The advanced technology used to make the EV parts make them costlier to replace.
● Electric cars are still new in the market, which means the availability of EV parts and specialised technicians are relatively few.

With these factored in, the insurance premiums could be generally much higher for EVs.

What should EV owners look out for?

While browsing, you might stumble upon car insurance plans that are marketed for electric cars but are actually more suitable for conventional vehicles. While some of the coverage details may be applicable to your electric vehicle, the motor plan may not provide the specific coverage your EV needs. To ensure you get the most suitable coverage, request for full information on the policy from trusted insurance brands before making a decision. For example, an EV insurance plan would include coverage on accidental damage to your private charging station.

Look for policies that are only applicable to EVs. That way, you know that the insurance plan is customised for your electric car. Apart from private charging station coverage, the EV policy plan may also include outpatient medical expenses and home content protection related to your electric car usage.

How to choose a car insurance plan for your EV?

Finding a suitable car insurance plan for your electric car is about getting into the nitty-gritty. Here are five factors to help you decide on the right plan:

(a) Coverage
Ensure the coverage goes beyond general motor protection and that it highlights EV-specific claims.

(b) Customisation
Look for a plan that provides optional coverages such as “Loss-of-Use” and “No Claim Discount (NCD) Protector to allow you the flexibility to customise to your needs. By opting for “Loss-of-Use”, you will receive a specific sum per day to defray part of your alternative travel expenses. The “NCD Protector” coverage allows you to continue enjoying your NCD even after making a claim.

(c) How comfortable you are to pay for the amount of excess
There are motor insurance providers that allow for nil excess. However, this usually results in a higher premium. Excess amounts are generally reasonable on most plans, as it is determined based on the risk profile of the vehicle and driver.

(d) No Claim Discount (NCD)
NCD is applicable to vehicle insurance plans, the maximum is capped at 50%, in which an insured can save up to 50% on premiums if s/he does not make any claims. The insured earns 10% NCD every year. If you go five years without claiming, you will get most of the NCD¹.

(e) Coverage when driving in Malaysia
As it is common for us to drive to Malaysia for vacation, having this perk as part of your EV plan is a great plus!

How does GREAT EV Protect stand out from the rest?

Our GREAT EV Protect provides comprehensive coverage for your electric vehicle and personal protection:

Private charging station: Our EV insurance comes with an extended coverage for accidental damage caused to your private charging station of up to S$5,000.

Outpatient medical expenses due to electric shock: Even when the unexpected happens, Great Eastern has got you covered. Our insurance plan includes a reimbursement of up to S$1,000 for outpatient medical expenses as a result of suffering an electric shock whilst charging your vehicle.

Damage to home contents: Should the contents of your home suffer damage as a result of fire caused by your private charging station, GREAT EV Protect offers up to S$20,000 reimbursement.

(Optional) NCD Protector: If your policy is currently at 40% NCD, that is no claims were made for four consecutive years, your NCD will be unaffected should you make a claim.

(Optional) Loss-of-Use: Temporarily losing the use of your car means losing some convenience and flexibility to travel from one destination to another, and running errands, among other things. GREAT EV Protect provides you with S$80 per day, up to 15 days, helping to defray your commuting expenses throughout this period.

GREAT EV Protect — The Go-To Motor Insurance Specifically Designed for Electric Vehicles
At the end of the day, what matters most is providing adequate protection for both the vehicle and the driver. It is best to opt for an electric vehicle insurance plan over regular car insurance. GREAT EV Protect not only has your electric car’s best interest but also your very own safety behind the wheel and at home. Learn more about Great Eastern’s EV insurance coverage today.

Source:
^1.https://www.motorist.sg/article/469/everything-you-need-to-know-about-no-claim-discount-ncd-in-singapore

Disclaimers

The above is for general information only.  It is not a contract of Insurance. Please refer to the policy documents for the precise terms and conditions of the insurance plan.

This policy is subject to the Premium Before Cover Warranty Clause, which requires the premium to be paid and received on or before the inception date of the Policy.

This policy is protected under the Policy Owners’ Protection Scheme which is administered by the Singapore Deposit Insurance Corporation (SDIC). Coverage for your policy is automatic and no further action is required from you. For more information on the types of bene­fits that are covered under the scheme as well as the limits of coverage, where applicable, please contact us or visit the General Insurance Association (GIA) or SDIC websites (www.gia.org.sg or www.sdic.org.sg).

GREAT EV Protect is underwritten by Great Eastern General Insurance Limited, a wholly-owned subsidiary of Great Eastern Holdings Limited and a member of the OCBC Group.

Information correct as at 10 July 2023.