Liga Asuransi – Hello automotive friends, how are you? May you, your family and your business always be in good condition and successful. In this blog, we are committed to providing insight into risk management and car insurance, helping you better protect your valuable assets.
This time, we will discuss electric vehicle insurance, a protection solution that is increasingly important in the era of environmentally friendly mobility. If you find this article useful, share it with your colleagues so that they too get a better understanding. Don’t forget, explore hundreds of other interesting articles on this blog that can help your business and investments! 🚗⚡
In recent years, the number of electric car owners in Indonesia has continued to increase in line with the government’s push to adopt environmentally friendly vehicles. Various incentives, such as tax exemptions, subsidies and development of charging infrastructure, are increasingly encouraging people to switch to electric vehicles. However, behind all these advantages, there are challenges that must be considered, one of which is cost electric car insurance which is different compared to conventional fuel cars.
Electric cars require special insurance because they have unique risks, such as high battery repair costs, risk of short circuit or fire, and the limited availability of special workshops. In addition, electric car premiums tend to be higher than conventional cars because the vehicle is more expensive and the price of spare parts is high.
This article will discuss factors that influence the cost of electric car insurance, a comparison of premiums between electric cars and petrol cars, and how to get EV insurance at more competitive prices. We will also review a list of insurance companies that offer protection for electric cars in Indonesia. With a better understanding, you can choose electric car insurance that suits your needs and budget.
Factors Affecting Electric Car Insurance Premium Prices
Electric vehicle insurance costs are generally higher compared to fossil fuel cars. This is caused by several factors that influence the calculation of electric car premiums, starting from the price of the vehicle to the availability of workshops. Here are the main factors that make EV insurance premiums more expensive:
- More expensive vehicle prices
Electric cars have higher prices than conventional cars with similar specifications. For example, the price of an electric car such as the Hyundai Ioniq 5 or Toyota bZ4X can reach IDR 700 million to IDR 1 billion, much more expensive than petrol cars in its class. Because insurance premiums are calculated based on the value of the vehicle, the more expensive the car, the higher the insurance costs.
- High Repair and Parts Costs
The main components of electric cars, such as batteries, inverters and electric motors, have very high prices. Electric car batteries themselves can reach 30-50% of the vehicle price. If damage occurs or requires replacement, the costs involved can be very large. Therefore, insurance needs to provide special protection against this risk, which results in increased premiums.
- Special Risks of Electric Cars
Electric cars have unique risks not found in gasoline cars, such as:
- Short circuit or fire due to battery overheating
- Damage to the electrical system due to water or strong impact
- Theft of batteries that are of high value and have a black market
This risk makes insurance companies set higher premiums to anticipate the possibility of large claims.
- Limited Specialty Workshop Availability
Not all workshops can handle electric car repairs. Only special workshops with certified technicians are able to handle electric vehicle services, and the number is still limited in Indonesia. This results in more expensive repairs and longer waiting times, which are also taken into consideration when calculating premiums.
- Selected Insurance Coverage
Electric car insurance policies are available in two main options:
- Comprehensive (All Risk): Covers all types of damage, from minor to total loss.
- Total Loss Only (TLO): Only covers if the vehicle is damaged above 75% or lost due to theft.
Choosing an All Risk policy will provide broader protection but will also increase insurance costs compared to a TLO policy which has more limited coverage.
Because electric vehicle insurance prices are higher, electric car owners need to consider the best solution to get optimal protection with more efficient premiums. Comparison of Premiums Between Electric Cars and Gasoline Cars
In the automotive world, vehicle insurance is an important part of protecting owners from financial risks due to accidents, theft or damage. However, electric car premiums have significant differences compared to petrol cars, mainly due to vehicle price, repair costs and the unique risks that electric vehicles have.
Calculation of Conventional vs. Car Premiums Electric Car
In general, petrol or diesel car insurance premiums range between 2-3% of the vehicle price per year. Meanwhile, electric car premiums can reach 3-5% of the vehicle price per year, depending on the protection coverage chosen.
Comparative Case Study of Insurance Premiums
- Conventional Cars vs. Middle Class Electric Car
- Toyota Avanza 1.5 G CVT (Rp. 300 million)
- All Risk Premium: IDR 6 – 9 million/year (2-3% of vehicle price)
- TLO premium: IDR 3 – 4.5 million/year (1-1.5% of vehicle price)
- Hyundai Ioniq 5 Prime Standard Range (Rp. 700 million)
- All Risk Premium: IDR 21 – 35 million/year (3-5%)
- TLO premium: IDR 10.5 – 14 million/year (1.5-2%)
- Electric vs. Electric SUVs Gasoline SUV
- Lexus UX 200 Luxury (Rp. 1 billion)
- All Risk Premium: IDR 20 – 30 million/year
- TLO premium: IDR 10 – 15 million/year
- Lexus UX 300e (electric SUV, IDR 1.3 billion)
- All Risk Premium: IDR 39 – 65 million/year
- TLO premium: IDR 19.5 – 26 million/year
Why are electric car premiums more expensive?
There are several main reasons why electric car insurance premiums are higher than petrol cars:
- The higher the vehicle price, the greater the insured value.
- Battery components are expensive, often accounting for 30-50% of the total price of the car.
- Repair costs are more expensive because spare parts and experts are still limited.
- Unique risks such as battery short circuit, overheating, and battery theft.
By understanding electric car insurance comparisons, vehicle owners can consider the best options to get optimal protection at competitive prices.
Additional Costs in Electric Car Insurance (Batteries, Parts and Special Services)
Apart from the basic premium, electric car owners need to understand that there are additional costs in electric car insurance, especially for protection of main components such as batteries, electronic parts and special services not found in conventional cars.
- Battery Insurance: Protection Against Damage and Theft
The battery is the most expensive component in an electric car, often accounting for 30-50% of the total vehicle price. Therefore, battery insurance is a very important additional protection. Some of the risks covered by this insurance include:
- Damage resulting from accidents or collisions
- Short circuit or overheating which causes fire
- Battery theft can result in replacement costs reaching hundreds of millions of rupiah
- Protection of Electronic Parts and Electric Motors
Electric cars have a different drive system from conventional cars, so they require special protection for their parts, including:
- Inverters and electric motors, which have quite high prices
- Battery cooling system, which if damaged can cause overheating
- Other electrical components are more sensitive to water and impact
- Personal Charging Station Insurance
Many electric car owners install home charging stations at their homes or places of business. However, not all vehicle insurance policies automatically include coverage for charging stations. Risks that need to be insured include:
- Damage due to short circuit or electrical interference
- Theft or vandalism
- Natural disasters such as floods or house fires
- Special Services in Electric Car Insurance
Because electric cars have unique characteristics, some insurers offer additional services such as:
- Replacement vehicle during repairs, because repairs to electric cars can take longer than conventional cars.
- Emergency evacuation if the battery runs out, which helps electric car owners if they run out of power in the middle of a trip.
- Repair at a specialist electric car repair shop, ensuring the vehicle is repaired by a certified technician with the appropriate equipment.
With electric car battery insurance and other additional protection, vehicle owners can have more peace of mind when driving without having to worry about expensive electric car repair costs.
List of Insurance Companies That Offer Electric Car Insurance Products
As the number of electric vehicle (EV) users increases in Indonesia, several insurance companies have started offering special insurance products for electric cars. Unlike conventional car insurance, electric car insurance includes additional protection such as battery insurance, short circuit risk, and vehicle replacement services during repairs. Below are several EV insurance providers in Indonesia and their advantages.
- Astra Insurance – Comprehensive Protection for EVs
Astra Insurance offers an All Risk (Comprehensive) insurance policy for electric cars, which includes:
- Damage resulting from accidents, natural disasters, or fire
- Protection against theft of vehicles and major spare parts
- Wide network of partner workshops that have started accepting Electric cars
- Allianz Indonesia – Battery Specific Risk Coverage
- Allianz provides electric car insurance with advantages in special battery protection, including:
- Damage due to impact or short circuit that causes fire
- Protection against battery theft, which is one of the most expensive components in an EV
- Additional options for electrical system and inverter protection
- Zurich Insurance – Replacement Vehicle Protection Guarantee
Zurich offers insurance policies designed to provide greater convenience for EV owners, including:
- Replacement vehicle facilities during repairs (as electric car repairs can take a long time)
- Emergency service if the battery runs out mid-trip
- Protection against special risks such as fire due to overheating
- Jasaraharja Putera – TLO Policy Cover for EV
- Jasaraharja Putera offers a Total Loss Only (TLO) policy for electric cars, with coverage:
- Protection against total loss due to theft or major accident (more than 75% damage)
- Premiums are more affordable than All Risk policies
- Suitable for electric vehicle owners who want insurance at lower costs
- Adira Insurance – Protection for EV Partner Workshops
Adira Insurance has a network of partner workshops that are able to handle electric car repairs. The benefits of the policy include:
- Protection against damage to vehicles and electric car specific parts
- Repair facility in a repair shop that has technicians certified for EVs
- Additional options for battery insurance and charging station protection
As the electric car market in Indonesia continues to develop, more and more electric car insurance companies are offering special products with wider protection coverage. Before choosing a policy, electric vehicle owners are advised to compare the benefits and premiums of various electric vehicle insurance providers to get the best protection according to their needs.
How to Get Cheaper Electric Car Insurance Premiums
Even though electric car insurance is generally more expensive than conventional cars, there are several strategies that can be implemented to get cheap EV insurance without reducing protection coverage. Here are some tips for getting cheap electric vehicle insurance and still getting maximum benefits.
- Use price comparisons from several insurance companies
Don’t rush to choose one insurance provider. Compare premiums and protection coverage from several insurance companies. Each provider has different pricing policies and benefits, so comparing can help you get the best deal.
- Choose a policy that suits your needs
If your electric vehicle is rarely used, it is not always necessary to choose Comprehensive (All Risk) insurance which has a higher premium. As an alternative, you can choose Total Loss Only (TLO) which is more affordable and still provides protection against total loss due to accidents or theft.
- Use Technology Features to Lower Premiums
Some insurance companies provide discounts for vehicles equipped with additional safety features, such as:
- Anti-theft system
- GPS tracker to monitor vehicle location
- Battery monitoring system that prevents the risk of overheating
- Utilizing this technology not only improves vehicle safety, but can also lower insurance premiums.
- Take advantage of promotions or discounts from insurance companies
Many insurance companies offer special discounts for electric vehicles as part of environmentally friendly initiatives. Apart from that, there are also special promotions for loyal customers or insurance purchases in large quantities (fleet EV).
- Use insurance broker services such as L&G Insurance Broker
Using an insurance broker like L&G Insurance Broker is an effective way to get the best policy at a more competitive price. Insurance broker advantages include:
- Access to multiple insurance providers to get the best premium comparison
- Ease of claims and consultation processes
- Policy recommendations are based on your specific electric vehicle needs
By implementing this strategy, you can get cheap electric vehicle insurance without having to sacrifice important protection coverage. Make sure you choose the right policy and take advantage of the various benefits available to get optimal protection at a more efficient cost.
Conclusion
Electric cars are increasingly popular in Indonesia, but insurance premiums for electric vehicles tend to be higher than for fossil fuel cars. This is caused by various factors, such as higher vehicle prices, the risk of battery damage, and the high cost of repairs and spare parts. However, electric car insurance coverage is broader because it includes battery insurance, protection against short circuit or fire, as well as special services such as a replacement vehicle during repairs.
Currently, various insurance companies in Indonesia are offering special insurance products for electric cars, including Astra Insurance, Allianz, Zurich, Jasaraharja Putera, and Adira Insurance. Each company has different coverage, so electric vehicle owners need to choose the policy that best suits their needs.
To get cheaper EV insurance premiums, electric car owners can compare prices from several providers, take advantage of discounts, and choose appropriate protection coverage. The best way to find the optimal policy is to use an insurance broker such as L&G Insurance Broker, who can provide the best recommendations at more competitive prices.
Don’t leave your electric vehicle without adequate protection! Contact L&G Insurance Broker now for a free consultation and the best offer regarding electric car insurance that suits your needs.
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