Impact of EV Bikes on the Two-Wheeler Insurance Industry

The rise of electric bikes is redefining the two-wheeler market, and insurers are adapting to this shift. Unlike conventional bikes, EVs involve advanced batteries, specialised components, and new risk considerations, which directly influence insurance coverage, premiums, and claim processes. 

As adoption grows, the two-wheeler insurance industry is evolving to address unique EV-specific challenges such as battery protection, repair expertise, and safety standards. Understanding this impact helps riders make informed insurance choices in an increasingly electric future.

What are the Impacts of the EV Bikes on Two-Wheeler Insurance Industry?

From increased premiums to a lack of technical knowledge, there are multiple noticeable impacts of EVs on bike insurance. The section below has deeply discussed the impacts:

Higher Insurance Premiums

Electric bikes are often noticed to attract high insurance premiums due to the presence of expensive and advanced lithium-ion batteries as well as electronic materials. The replacement or repair costs after accidents of EV two-wheelers are generally costly, which in turn increases the risk exposure of insurers. Hence, EV bike insurance policies are generally more expensive than those for conventional two-wheelers. 

Introduction of Specialised Repair and Claim Costs

EV bikes mostly require an authorised service centre and trained technicians for any repair process. The limited availability of specialised infrastructure for repair increases the overall labour cost and turnaround time. This directly impacts the claim settlement process and the EV-related claims become complex and expensive when compared to traditional two-wheelers.

Battery-Specific Coverage Considerations

The battery is the most important part of an electric bike, but it is also most likely to get damaged or stolen or even short-circuited. Insurance companies are adding, changing, and removing coverage terms that focus on batteries. These things have a big effect on how policies are set up along with how much they cost and how claims are handled.

Evolving Risk Assessment Models

It is important for insurance providers to reassess the risk factors for EV bikes along with charging-related issues, fire hazards and water damage during the monsoon. Hence, the traditional underwriting models are getting updated to account for all the new risks. This also leads to a revision of policy terms and a detailed assessment of coverage

Introduction of New Add-ons and Policy Features

The insurers now offer tailored add-ons such as battery protection or roadside assistance for charging issues and coverage for electrical failures to address EV-specific needs. These customised features enhance protection for EV owners while expanding product offerings within the two-wheeler insurance industry.

How to Buy an EV Bike Insurance?

Let us look at the steps to buy EV bike insurance online:

Step 1: Visit any third-party website or an insurance company's official page that offers EV insurance. 

Step 2: Go to the EV bike insurance section.

Step 3: Provide your EV bike-related information, such as model, bike number, etc.

Step 4: Choose an EV bike insurance plan that aligns with your requirements.

Step 5: Include add-ons to maximise benefits.

Step 6: Pay the premium amount. Every platform offers UPI, credit or debit cards, or net banking for secure payment.

Step 7: Receive the confirmation email of the policy.

Inclusions and Exclusions of EV Bike Insurance

EV bike insurance has different inclusions and exclusions that policyholders must know before getting one for themselves. Let us look below to get an idea:

Inclusions

• Accidental damage
• Damages due to Fire or Explosions
• Theft or Total Loss
• Third-party Liability (both the third-party property damage and the third person’s injuries)
• Natural calamities or man-made disasters

Exclusions

• Depreciation on parts
• Riding without a proper driving license
• EV battery without a proper add-on
• Intentional damage, misuse, or carelessness
• Unapproved modifications or accessories 

Final Words

EV vehicles are a phenomenal innovation that can potentially heal the planet from rising pollution and global warming. However, its insurance depends on many factors, mainly on the battery type.

Moreover, buying an EV bike insurance policy is very simple through the online portals in just a few minutes. Nevertheless, it also has inclusions and exclusions, slightly different from diesel or petrol bikes. Nevertheless, policy purchasing’s most essential part is reading the terms and conditions.