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Electric Car Insurance Is More Expensive Than Conventional Car Insurance?

Cars are one type of vehicle that is often insured, because it has a fairly high value.

Not only conventional cars, several insurance companies have even developed electric car insurance which reportedly will have higher premiums than conventional car insurance.

Moreover, the Indonesian government’s plan to introduce environmentally friendly vehicles or electric cars has made insurance companies participate in developing electric car insurance products.

In fact, as reported by Kompas.com, the Indonesian government is targeting 400,000 electric cars to fill the automotive market by 2025.

Although the development has just been planned, the electric car insurance product itself has not been formed concretely.

This means that the product is still in the discussion stage. Moreover, at this time electric car enthusiasts in Indonesia are still minimal, even the population is still very small.
Insurance Products Don’t Follow Automotive Developments But See Consumer Needs

As previously stated, until now electric cars have only had minimal demand, so the consumer’s need for electric car insurance has not been seen.

This is because insurance products do not keep up with the ever-changing automotive developments, but can be seen from the needs of consumers. That is, if the demand for electric car insurance increases, it is more likely that insurance companies will provide the service.

Electric Cars Also Need Protection

Although it is only a plan and has not yet started, electric car insurance products are believed to be able to provide a good market niche for the industry.

The reason is, electric vehicles, including electric cars, still need insurance protection. The reason is, electric cars also still have risks.

In addition, electric car insurance and conventional car insurance are also not much different. The reason is, every insurance product that is made must of course refer to the Indonesian Motor Vehicle Insurance Standard Policy (PSAKBI).

Where the amount of premiums to the protection benefits that will be received, from electric vehicles may not be much different from others.

Electric Car Insurance Premiums Are More Expensive

However, there seems to be a difference in the cost structure of electric vehicle insurance which is known to be more expensive than general vehicle insurance premiums. This is due to the high price of batteries in electric cars.

You need to know, that the price of an electric car battery is half the price of a car. So, half the price of an electric car comes from the battery.

That’s why electric car insurance premiums are expected to be more expensive, compared to conventional car premiums.

Handle Electric Car Can’t Withstand Any Mechanical

In addition to the battery which is the most expensive component in an electric car, the thing that makes electric car insurance premiums expensive is also because electric car components are imported directly from abroad and electric cars must be handled by professional mechanics.

The reason is, only certain technicians or those with special skills are allowed to handle electric car damage.

In fact, some insurance companies plan to set up a special electric car repair shop.

So, it could be that the insurance premiums for electric vehicles and conventional cars could be the same. However, this is seen again from the condition of the damage to the car itself.

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