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A quick guide to insuring your electric vehicle in South Africa

Insurance 101

Thinking of making the leap to an EV? Nice! Understand how insurance for an EV differs from traditional car insurance.

First things first, does insurance for your EV differ to insurance for ‘normal’ cars?

Not really, insuring an electric car isn't worlds apart from traditional car insurance. Yet, there are a few nuances worth noting.

1. It might cost a bit more

Since electric cars feature newer, complex technologies — like their batteries — that insurers are still getting used to, you might notice the premiums are a bit higher. However, as insurers learn more about their technology and the repair costs after an accident, they will get better at assessing risks and setting fair premiums.

2. They generally need specialist repairs

Electric vehicles(EVs) use special technology that only trained mechanics with the right tools can fix. This means fixing them might cost more, which could make your insurance a little higher. When you're getting insurance for your EV, it's a good idea to chat with your insurer to make sure you're covered for these extra repair costs without any surprises.

3. How will your insurer deal with parts special to your EV?

When you insure your electric vehicle, it's really important to talk to your insurance company about how they deal with the costs of fixing or replacing parts of your EV that are special to it, like the battery or electric motor. These parts can be more expensive compared to those in traditional cars. So, you need to know if your insurance policy covers these higher costs. This way, if something goes wrong with these special parts, you won't be caught off guard by a big bill. Ask your insurer specific questions about these scenarios to ensure you're fully covered and understand what's included in your policy.

4. Your EV’s value might depreciate differently

Electric vehicles might lose their value differently than normal cars, which can affect your insurance. It's smart to ask your insurer how this impacts your policy. Knowing if your EV depreciates faster or slower can help you understand future insurance costs and ensure you're always getting a fair deal. This way, you can avoid any surprises and make sure your coverage stays just right.

5. EVs need specific roadside assistance

It's important to check that the policy includes roadside assistance that works for EVs. This means if your car breaks down or runs out of battery, the insurance should cover services like towing your vehicle to the nearest charging station. This kind of help is crucial because EVs can't just be taken to any gas station for a quick fill-up.

6. Your driving habits could benefit you

Insurers may view EV drivers as less risky, which could translate into lower insurance rates.

Some tips for getting insurance for your EV:

Navigating the insurance market for the best deal on your EV can be straightforward with the right approach.

Shop around

Don’t settle too quickly; comparing offers can help you get the best insurance deal for your EV. Make sure to compare apples with apples if you do get a bunch of quotes.

Make sure you look at the overall cost of owning an EV

Keep in mind that the lower costs to run and maintain an electric vehicle can balance out any higher insurance premiums. Saving money on maintenance and using less fuel can make owning an electric vehicle good for your budget in the long term.

Get comprehensive coverage

Make sure you understand the details of your insurance policy, especially when it comes to the battery and tech parts. Make sure you know what is and isn't covered so that you don’t get any surprises at the claims stage.

Check the insurer’s experience with EVs

An insurer familiar with electric vehicles might provide better coverage options and advice, they might also be better and quicker at repairing your vehicle when you are in an accident. So be sure to talk to them and find out how experienced they are.

Look for policies that offer perks for EV owners

Make sure to ask your insurer if they offer any special coverage for battery failures or incentives for using renewable energy. These benefits can make a big difference, giving you extra protection and possibly saving you money for being eco-friendly.

Switching to an electric car in South Africa is forward-thinking and a smart move for the environment. Insurance might seem complicated, but with the right guidance, it's just another box to tick off. With Naked you can tick that box off with ease; get a comprehensive car insurance quote for your EV in under 90 seconds!

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