# EV Insurance Claims Cost 14% More Than ICE Cars: What Indian Buyers Should Know

> Policybazaar reports higher average EV claim costs and rising battery-cover adoption. Here is what the data means for Indian electric-car owners.
- **Author**: Prakash
- **Published**: 2026-10-06
- **Modified**: 2026-10-06
- **Category**: news
- **URL**: https://bestev.in/news/ev-insurance-claims-cost-14-more-than-ice-cars-what-indian-buyers-should-know-20261006

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Electric-car insurance claims are more expensive than those for comparable petrol and diesel vehicles in Policybazaar's latest analysis, reported by Autocar Professional on October 6, 2026. For buyers, the findings put repair protection and workshop access alongside charging costs in the ownership calculation.

## EV versus ICE: average claim costs

| Measure | Reported figure |
| --- | ---: |
| Electric-car average claim severity | INR 41,543 |
| Comparable ICE-car average claim severity | INR 36,185 |
| Reported difference | 14% |
| Vehicle price bracket studied | INR 10-15 lakh |
| Ownership period covered | First three years |
| Large-loss claims | Excluded |

Policybazaar links the gap to battery systems, electronics, imported parts and limited EV repair infrastructure.

The rupee figures imply a difference of INR 5,358, or approximately 14.8% when calculated against the ICE average. The report describes the difference as 14%; BestEV has retained that reported headline figure while showing the underlying amounts.

## What "claim severity" actually means

Claim severity describes the average cost of a claim. It is different from claim frequency, which measures how often claims occur, and from the premium a customer pays.

These figures therefore do not establish that every electric car costs 14% more to insure. They also cannot predict an individual repair bill. The comparison is restricted by vehicle age, price and the exclusion of major losses.

A buyer should avoid applying this average to a substantially more expensive EV, an older vehicle or a total-loss incident. Those situations fall outside the stated comparison.

## Battery protection gains attention

Battery-cover adoption rose from 51% to 70% in six months. Around 80% of EV owners selected at least two major add-ons, compared with 77% of diesel owners and 75% of petrol owners.

The report associates battery protection with water ingress and power-surge risks, subject to policy wording.

Policybazaar's electric-car insurance explainer also lists battery protection, charging-related cover and zero-depreciation options. However, buyers should read the actual insurer's policy and endorsement rather than assume a product label guarantees the same benefits across providers.

## Body style and location affect reported claims

| EV body style | Claims per 100 insured vehicles |
| --- | ---: |
| SUV | 31 |
| Hatchback | 28 |
| Sedan | 26 |

East India recorded 41 claims per 100 insured EVs, versus 27 in South India. Tier-II cities recorded 33, compared with 30 in Tier-I and 27 in Tier-III cities.

These observations describe the insured sample. They do not, by themselves, show that a particular body style or region causes accidents. Exposure, driving conditions and the mix of vehicles can matter when interpreting comparisons.

## Five questions to ask before buying EV insurance

**1. What battery damage is covered?** Ask the insurer to identify the clauses for accidental damage, water ingress, electrical faults and charging incidents. Check exclusions and claim limits separately.

**2. Does the charging equipment have protection?** Establish whether the policy covers a portable charger, installed wallbox or charging cable, and under what circumstances. A reference to battery cover should not be treated as confirmation that every accessory is insured.

**3. How does zero depreciation work?** Check which components qualify, any restrictions on vehicle age, the permitted number of claims and the deductible. Zero depreciation should not be read as a promise of a completely cash-free repair.

**4. Where will the vehicle be repaired?** Confirm that a nearby cashless workshop accepts the specific model and can handle its high-voltage systems. Ask who arranges towing and how roadside assistance applies to a discharged battery.

**5. What happens after a claim?** Compare the excess, documentation requirements and effect on the no-claim bonus. Keep the schedule, endorsements and insurer's contact details accessible.

Policybazaar's explainer distinguishes own-damage protection from third-party cover and describes notifying the insurer, recording damage and arranging an inspection as parts of the claims process.

## BestEV's ownership perspective

BestEV's analysis: insurance deserves its own line in an EV ownership budget. A useful comparison combines the premium, deductibles, coverage limits, repair access and potential downtime with energy and servicing costs.

The practical response to higher average claim costs is to compare equivalent protection across quotes. A cheaper policy may serve a buyer well, but the premium alone does not explain what happens when a battery, electronic component or charging accessory is damaged.

## Sources and image disclosure

- [Autocar Professional: Policybazaar EV insurance claims data, October 6, 2026](https://www.autocarpro.in/news/ev-insurance-claims-cost-14-percent-more-than-ice-cars-policybazaar-data-135073)
- [Policybazaar: electric-car insurance and coverage explainer](https://www.policybazaar.com/motor-insurance/car-insurance/electric/)

Featured image: AI-generated representative illustration of an EV insurance inspection; it does not depict a real claim or a vehicle identified in the study.

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