As India transitions to electric and ethanol-blended vehicles, insurance policies are struggling to keep pace. From fire fears to fuel-related exclusions, myths abound. Here's what EV and E20 owners need to know about coverage, claims, and common misconceptions.
🧾 Myth #1: All EV Damage Is Covered
Reality: While most comprehensive policies cover EVs, battery damage due to improper charging, waterlogging, or aftermarket modifications may be excluded. Always check if your insurer covers battery replacement and BMS failures.
â›˝ Myth #2: E20 Fuel Damage Is Automatically Covered
Reality: If your vehicle isn’t E20-compatible and suffers engine damage, insurers may reject claims citing “gross negligence.” Some policies now include ethanol disclaimers—read the fine print before refueling.
🔥 Myth #3: EV Fire Incidents Are Fully Insured
Reality: Fire damage is covered only if the vehicle was charged using certified equipment and not modified. Faulty home wiring or unapproved chargers can void fire-related claims.
🔋 Myth #4: Battery Replacement Is Always Free
Reality: Battery warranties are separate from insurance. If your battery fails outside warranty and isn’t damaged by an accident, you may have to pay out-of-pocket unless you’ve opted for battery-specific coverage.
📉 Myth #5: EVs Have Lower Premiums
Reality: EVs often have higher premiums due to expensive components and limited repair networks. However, government subsidies and green discounts can offset costs. Ethanol vehicles typically retain standard ICE premiums.
đź“Ł What Owners Should Do
- Check if your policy includes EV battery and charger coverage
- Verify E20 compatibility before refueling
- Use certified charging setups to avoid fire exclusions
- Ask for green discounts or EV-specific riders
- Read fuel disclaimers and warranty clauses carefully
Insurance for EVs and ethanol vehicles is evolving. Stay informed, ask questions, and protect your investment with the right coverage.