6 Things To Consider When Buying Car Insurance For Your Electric Vehicle

SingSaver team

SingSaver team

Last updated 18 July, 2022

Car insurance can look slightly different when it comes to electric vehicles. 

When you buy a car, one of the biggest decisions you have to make is what type of insurance to get. The same is true when you buy an electric vehicle. There are many different types of insurance available, and it can be challenging to decide which one is right for you. 

When it comes to car insurance, there are a few things you need to take into account before making a purchase, especially if you're driving an electric vehicle. Here are a few things to keep in mind when shopping for insurance for electric vehicles:

1. Electric vehicle insurance plans are few in Singapore 

Some insurers have yet to develop insurance plans that consider the unique needs of electric vehicles, such as the high cost of repairs and the fact that many electric cars are used for short commutes. This leaves electric car owners with few options when it comes to insurance. 

As of now, there are only five insurance companies in Singapore offering insurance covers for electric cars. If you're driving an electric car, make sure to research and compare the different insurance policies before purchasing.

Electric vehicles insurance plans Electric vehicles insured Premium samples (no NCD)
Allianz Electric Motor Protect All private electric cars Request estimates from Allianz Financial Advisors (no direct purchase)
G&M Tesla Insurance Tesla S$900 to S$4,000 a year
Liberty Insurance Insure MyTesla Tesla Roughly S$4,000 a year
AXA Car Insurance  All private electric cars N/A
NTUC Income EV Insurance Tesla, Mini, Audi, BMW, BYD, Honda, Hyundai, KIA, MG, Nissan, Renault S$3,335.45 each year for BMW 

2. Insurance does not cover everything

The usage-based coverage provided by NTUC Income does not include battery failures or defects by default; you must purchase the maintenance package, which contains a complete list of auto parts that may fail for any cause.

The extent of coverage by AXA is very limited. It only includes accidents, acts of God and uncontrollable events. This implies that problems like electric car malfunction are not covered. If this occurs, you must go to the manufacturer and file a complaint.

Liberty Insurance provides more complete coverage, although their premiums are somewhat higher. 

3. Premium is determined by the manufacturer and model of your vehicle 

The premium for an electric car depends on many factors, including what type of model and make it is and the electric car depreciation rate. In general , if you have a more luxurious or high-end model such as a Tesla, your insurance will cost higher. Insurance for Teslas can be expensive. Be prepared to pay more if you want coverage for your new Tesla Model 3.

Things to be aware of if you own a Tesla

If you want to go for a Tesla car, ensure that your electric car cover covers all the features. For example, their cool extended windshield is often not covered by standard policies because it ends at where the roofline starts, so this might be an issue depending on who offers what type of coverage. However, it is possible to acquire an insurance policy covering your entire electric car with its features. 

According to Tesla owners, most insurance does not cover incidents linked to charging Tesla automobiles. Furthermore, any unauthorised experimental features you may download are unlikely to be covered.

4. You can insure your Car based on usage

If you own an electric car in Singapore, it's important to consider usage-based insurance (UBI). This innovative plan offers generous discounts when your vehicle is not utilised frequently or daily; this can lead to lower premiums for those who drive their vehicles less often.

NTUC Income is a company that provides electric car owners with UBI options in Singapore. NTUC offers third-party coverage and additional benefits such as comprehensive or theft/fire protection, depending on your needs.

The insurance provider will know how much you have driven because they install a device that connects to the car's odometer. This simple solution effectively saves companies like these from using GPS or cell phones, which are often inaccurate when trying to track distances covered by drivers.

5. Electric vehicle insurance is more customised to your needs

Even if you can't receive a straight quote online, your insurance provider will most likely provide more personalised rates based on your specific circumstances. Your per-kilometre insurance rate is determined by a number of criteria, including the brand and model of automobile you drive. In addition, the cost of insuring an electric car will be affected by the driver's age.

Tesla cars, for example, are relatively new in Singapore and are uncommon on the roads, so it may take some time for insurers to figure out how high rates for these vehicles should be.

6. It is tough to obtain a direct quote online 

Nowadays, it's simple to acquire a fast quotation for traditional auto insurance online. All you need is the brand and model of your automobile, the year of registration, your birth date, and the percentage of No Claim Discounts (NCD). 

However, it is crucial to remember that, as electric vehicles are relatively uncommon in Singapore, no formal pricing system has been established, which means premium charges vary substantially between various providers. 

This lack of consistency will take time for insurers to determine how much to charge depending on each individual's risk factor or history. To acquire a specific quotation for your EV, you may need to submit an enquiry with the appropriate data in person or by email. This takes more effort and time, making it impossible to compare estimates rapidly.

How to save on electric car insurance

If you decide to purchase an electric vehicle, car owners can save on insurance just like they do with their conventional cars. Avoiding accidents and traffic violations will help keep your premiums down. You can browse the different providers to look for cheaper rates.

There are various discount schemes available. Insurance companies provide a variety of discounts for things like buying numerous policies, insuring multiple vehicles, staying claim-free, and completing a defensive driving course, among other things.

Benefits of driving electric vehicles

Investing in an electric vehicle comes with numerous benefits. Here are a few of the advantages:

Energy independence

Energy independence is a reality with home charging stations. When you buy one, it will be able to charge your battery when needed and cut down on gas station visits since you can plug in at night and have your car ready to go the next day.

Extended battery life

Unlike gasoline cars, which rely on oil that must be imported from other countries, electric vehicles can be powered by electricity generated from various domestic sources, such as wind, solar, and hydropower. As a result, electric vehicles can help to reduce reliance on oil and decrease vulnerability to disruptions in the global supply.

Lower environmental impact

Electric vehicles produce zero emissions, which means they don't contribute to air pollution. Electric vehicles are so much cleaner than gas-powered cars that even when the emissions from power plants are considered, they still produce far less pollution than gas cars. 

In addition, by using electricity generated from renewable sources, electric vehicles can help to reduce our carbon footprint and slow the effects of climate change. This is because extracting and refining oil creates a lot of emissions, and electric vehicles don't use oil.

Reduce fuel expenses

Electric vehicles run on electricity, which is much cheaper than gas. In addition, electric vehicles are more efficient than gas-powered cars, so they use less energy to go the same distance. As a result, drivers of electric vehicles can save a significant amount of money on fuel costs over the lifetime of their car.

Lower inhaled emissions

Unlike gasoline-powered cars, electric vehicles produce no tailpipe emissions. This means that drivers and passengers are not exposed to harmful pollutants, such as carbon monoxide, nitrogen oxides, and particulate matter. 

Inhaling these pollutants can cause many health problems, including respiratory infections, asthma attacks, and heart disease. By switching to an electric vehicle, drivers can help protect their health and the health of those around them.

Lower maintenance costs

In addition to being cheaper to operate than traditional gasoline-powered cars, electric vehicles also require less maintenance. For example, electric cars have far fewer moving parts than internal combustion engine vehicles, so there are fewer opportunities for something to break down. 

Electric cars also don't require tune-ups or oil changes, and their brakes tend to last longer because of their regenerative braking systems. As a result, owning an electric car can save you money in both the short and long run.

No matter the car you’re insuring, whether electric or not, you can find out more about the best car insurance plans. Drive with confidence knowing that you’re fully protected.

Read these next:
Buying Car Insurance For Your Electric Vehicle (EV): 5 Things To Note
Singapore Budget 2021: Electric Vehicles To Go The Extra Mile With $30 Million Support From Govt
A Guide To Owning A Tesla Car In Singapore
Buying An Electric Car In Singapore: A Complete Guide
How Carro’s New Usage-Based, Pay-Per-Kilometre Insurance Could Appeal To Car Owners In Singapore

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