Liga Asuransi – Hello automotive friends, how are you? We hope that you, your family and your business are always in good condition and running smoothly. In this blog, we focus on risk management and insurance, providing important insights to protect your valuable assets. This time, we will review electric vehicle insurance, a financial protection solution for EV owners and users.
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In recent years, the trend of using electric cars in Indonesia has increased rapidly. This is driven by various factors, including public awareness of the environment, government policies that support clean energy, and the development of increasingly sophisticated electric vehicle technology. The Indonesian government has shown a serious commitment to encouraging the transition to electric vehicles by providing various incentives, such as exemption from motor vehicle tax (PKB) and motor vehicle title transfer fees (BBNKB), subsidies for purchasing electric cars, as well as developing charging station infrastructure in various large cities.
However, behind all the benefits that electric cars offer, there are challenges that need to be considered, one of which is financial protection through insurance. Electric cars have special components, such as very expensive batteries, and electrical technology that is more complex than conventional fuel-powered cars. Risks such as damage due to short circuits, fire, battery theft, and higher repair costs make insurance a primary necessity for electric car owners.
With the right insurance protection, electric car owners can feel calmer when driving, reduce financial risks due to accidents or damage, and ensure that the car continues to receive the best repairs. Therefore, choosing appropriate insurance is very important to support safety and comfort when using an electric car in Indonesia.
Development of the Electric Car Market in Indonesia
In recent years, the electric car (EV) market in Indonesia has experienced significant growth. According to data from the Association of Indonesian Automotive Industries (Gaikindo), sales of electric cars in Indonesia continue to increase, with a sharp spike since 2022. The government is targeting at least 2 million units of electric vehicles operating in Indonesia by 2030 as part of efforts to achieve net zero emissions by 2060.
The main factors driving electric car adoption in Indonesia include:
- Government regulations – The government provides various incentives such as exemption from Motor Vehicle Tax (PKB), 0% PPnBM tax incentive, subsidies for purchasing electric vehicles, as well as regulations that encourage domestic EV production.
- Fluctuations in fuel prices – The increase in the price of fossil fuels encourages people to look for alternatives that are more economical and environmentally friendly.
- Environmental awareness – People are increasingly aware of the importance of reducing carbon emissions, especially in big cities with high levels of pollution.
However, even though the EV market is growing, there are still several key challenges it faces:
- Charging station infrastructure is still limited, especially outside big cities.
- The price of electric vehicles is still higher than conventional fuel-powered cars.
- The cost of maintaining and replacing batteries is expensive, which is one of the main factors in determining the total cost of ownership.
Despite these challenges, the growth trend of electric cars remains positive. With more and more manufacturers presenting EV models at more competitive prices and sustainable infrastructure development, the electric car market in Indonesia is predicted to continue to grow rapidly in the next few years.
Why Do Electric Cars Need Special Insurance Coverage?
Electric cars have different characteristics from fossil fuel cars, so they require more specific insurance protection. One of the main differences is the drive system which uses batteries as the main energy source, not an oil-fueled engine. Even though they are more environmentally friendly and efficient in the long term, electric cars have unique risks that require broader and more comprehensive insurance coverage.
Some of the main risks faced by electric car owners include:
- High battery repair costs – The battery is the most expensive component in an electric car, often accounting for 30-50% of the vehicle price. If it is damaged due to an accident or malfunction, replacement costs can reach hundreds of millions of rupiah.
- Damage due to short circuit or overheating – Electric cars are susceptible to the risk of fire due to short circuit or overheating in the battery system, especially if there is an accident or disruption to the battery cooling system.
- Limited availability of specialized workshops – Not all workshops are capable of handling electric car repairs. Special EV workshops are still limited in number and have higher repair costs compared to conventional cars.
- Risk of theft of batteries or other components – Electric car batteries have high value and are a target for theft. Apart from that, components such as inverters and electric motors are also at risk of being stolen because of their technology and high selling prices.
In dealing with these risks, electric car insurance plays an important role in providing financial protection. The right insurance policy can cover battery damage, fire due to short circuit, protection against theft, as well as providing access to a specialized partner repair shop that has experience working with electric cars. By having appropriate insurance, electric car owners can drive more calmly without having to worry about the risk of high costs if unexpected events occur.
Types of Protection in Electric Car Insurance
Electric cars have different characteristics compared to conventional fuel-powered cars, so they require more specific insurance coverage. In general, there are two main types of protection available:
- Comprehensive Insurance (All Risk) – Offers full protection against all types of damage, both light and serious, including accidents, natural disasters, theft, and other risks listed in the policy.
- Total Loss Only (TLO) Insurance – Only provides protection if the vehicle is totally damaged (more than 75% of the vehicle’s value) or lost due to theft.
In addition to these basic protections, there are several special protections designed for electric cars, considering their different risks from conventional cars:
- Insurance for damage due to short circuit or battery fire
The battery is the most important component in an electric car and has the risk of short circuiting or overheating which can cause a fire. This insurance covers the cost of repairing or replacing the battery as a result of the incident, which can be very expensive if not covered by insurance.
- Electric Car Battery and Parts Theft Insurance
Electric car batteries have high prices and are targets for theft. This protection covers the cost of replacing stolen batteries as well as other critical components, such as inverters or electric motors.
- Protection for Personal Charging Stations
Many electric car owners install charging stations at home or in the office. Some insurance companies offer coverage for damage or loss of charging equipment that occurs due to natural disasters, fire, or theft.
- Third Party Liability Protection
If your electric car causes an accident that harms a third party (for example, hitting another vehicle or a pedestrian), this protection covers the costs of compensation to the victim.
- Replacement Vehicle Coverage During Repair
Because workshops specializing in electric cars are still limited, repair times can take longer than conventional cars. Some insurers offer replacement vehicles during the repair process so that car owners can continue their activities.
Protection Comparison Electric Car Insurance in Indonesia
In Indonesia, several large insurance companies are starting to offer special policies for electric cars, including Astra Insurance, Jasaraharja Putera, Allianz, Zurich, and Adira Insurance. Each company has different protection coverage, with variations in premiums and benefits offered.
To get optimal protection, use the services insurance broker like L&G Insurance Brokers can help electric car owners choose the best policy to suit their needs and budget. Insurance brokers have access to a variety of insurance providers and can help get the best deals, as well as support in the claims process.
By having the right protection, electric car owners can drive more safely and comfortably without having to worry about major financial risks.
Comparison of Premiums and Benefits of Electric vs. Electric Car Insurance Conventional Car
As the adoption of electric cars increases in Indonesia, many prospective vehicle owners are considering the difference in insurance costs between electric cars (EV) and fossil fuel cars (conventional). In general, electric car insurance premiums are higher than conventional cars because of different risk factors.
Factors Affecting Electric Car Insurance Premiums
- More expensive electric car prices
Electric cars generally have higher prices than petrol or diesel cars with equivalent specifications. This has a direct impact on insurance costs, because insurance premiums are calculated based on the value of the vehicle.
- Repair and spare parts costs are still high
Spare parts for electric cars are still more expensive than conventional cars, mainly due to limited supply and a lack of workshops that can handle repairs.
- Risks of Batteries as the Most Expensive Component
The battery is the most expensive part of an electric car, often accounting for 30-50% of the total vehicle price. Damage or loss of the battery will result in large claim costs, resulting in higher insurance premiums.
Comparison of Electric vs. Electric Car Insurance Premiums Conventional Car
Conventional Cars:
Insurance premiums range from 2% to 3% of the vehicle price per year.
Electric Car:
Insurance premiums can reach 3% to 5% of the vehicle price per year, depending on the insurance provider and coverage coverage.
Despite higher premiums, electric car insurance offers several additional benefits not found with regular car insurance:
- Special protection for battery and electrical system
- Coverage against risk of short circuit and fire due to overheating
- Protection for personal charging stations
- The cost of a replacement vehicle during a longer repair
With these benefits, even though premiums are more expensive, electric car insurance remains an important investment for long-term financial protection. Using an insurance broker like L&G Insurance Broker can help get the best policy at a more competitive price, ensuring optimal protection for electric vehicle owners.
How to Choose the Best Electric Car Insurance?
With the increasing number of electric car owners in Indonesia, choosing the right electric car insurance is an important step to ensure optimal protection. Because the characteristics and risks of electric cars are different from conventional cars, there are several factors that need to be considered when choosing an insurance policy.
- Adjust to Vehicle Protection Needs
Every electric car owner has different protection needs. Make sure the insurance you choose covers the main risks, such as battery damage, short circuit, fire and theft of major components. If the car is used daily, consider additional coverage such as a replacement vehicle during repairs.
- Pay attention to the risk coverage guaranteed in the policy
Not all insurance companies offer special coverage for electric cars. Make sure the policy you choose includes:
- Damage due to short circuit or overheating of the battery
- Protection against theft of batteries and spare parts
- Protection for personal charging stations
- Third party liability (Third-Party Liability)
- Choose an Insurance Company That Has Experience with Electric Cars
Not all insurance providers have experience handling electric vehicle claims. Choose insurance from a company that understands EV technology and has a network of partner workshops that can handle electric car repairs with original spare parts.
- Compare Premiums and Benefits from Several Insurance Providers
Before deciding, compare the premiums, protection coverage, and benefits offered by several insurance companies. Make sure you get the best protection at a competitive price.
- Ensure Ease of Claims and Network of Partner Workshops
Fast and easy claims are very important so that you don’t experience problems when damage or accidents occur. Choose insurance that has a transparent claims process, and has a network of partner workshops that can handle electric car repairs quickly and professionally.
- Use an Insurance Broker to Get the Best Deal
Using an insurance broker like L&G Insurance Broker can help you get the best policy at a more competitive price. Insurance brokers have access to a variety of insurance providers, provide recommendations to suit your needs, and assist in the claims process if an incident occurs.
By considering these factors, you can choose appropriate electric car insurance, ensure optimal protection, and avoid financial risks due to accidents or damage to your electric vehicle.
The Important Role of Insurance Brokers such as L&G Insurance Brokers in Electric Car Protection
Choose electric car insurance The right one is not easy, especially because this type of vehicle has different risks and protection needs than conventional cars. This is where the role of insurance brokers like L&G Insurance Brokers becomes very important in helping electric car owners get the best protection at competitive premiums.
Why Use an Insurance Broker?
- Get the Best Policy with Competitive Premiums
Insurance brokers work with various insurance companies to compare premiums, protection coverage and policy benefits, so that electric car owners can get optimal protection at a more affordable price.
- Offering Protection Solutions According to the Needs of Electric Car Owners
Every electric car owner has different needs. Insurance brokers help tailor policies to factors such as batteries, charging stations, risk of fire due to short circuits, and expensive spare parts.
- Simplify the Claims Process
The insurance claim process is often a challenge for vehicle owners. By using a broker like L&G Insurance Broker, claims can be processed more quickly and efficiently because the broker has experience in handling various electric vehicle insurance cases.
- Providing Education about the Risks and Benefits of Electric Car Insurance
Many electric car owners don’t fully understand the risks to their vehicles. Insurance brokers provide a deeper understanding of available coverage, possible risks, and how to manage insurance effectively.
Advantages of L&G Insurance Brokers in Electric Car Insurance
- Experienced in the Vehicle and Transportation Insurance Industry
- L&G Insurance Brokers has experience in handling various types of vehicle insurance, including electric vehicles.
- Wide Network with Leading Insurance Companies
- As an independent broker, L&G Insurance Broker has access to various leading insurance companies in Indonesia, so it can offer the best policy choices for customers.
- Transparent and Customer Needs Based Consultation Process
L&G Insurance Broker ensures that each client gets an insurance solution tailored to their specific needs, with clear and transparent explanations.
Digital Support via LIGASYS
L&G Insurance Broker uses LIGASYS, a digital insurance management system that makes it easier for customers to monitor policies, payments and claims online, increasing efficiency and customer comfort.
With these advantages, L&G Insurance Brokers becomes a trusted partner for electric car owners to get maximum protection and an easier and more transparent insurance process.
Conclusion
Electric cars are increasingly popular in Indonesia, driven by environmental awareness, government incentives, and the increasing choice of electric vehicle models from various manufacturers. However, behind the advantages of using electric cars, there are unique risks that need to be considered, such as high battery repair costs, the risk of short circuits and fires, and the limited availability of workshops. Therefore, having special insurance for electric cars is an important step to protect vehicle owners from major financial risks.
Currently, various types of electric car insurance protection are available, ranging from Comprehensive (All Risk) and Total Loss Only (TLO) to special coverage such as protection for batteries, fire due to short circuit, theft of spare parts, and third party liability. Choosing the right policy requires a deep understanding of electric vehicle needs.
This is where the role of L&G Insurance Broker becomes very important. As an experienced insurance broker, L&G helps electric car owners get the best policies with competitive premiums, optimal protection coverage, and an easy claims process.
Don’t leave your electric car without proper protection! Contact L&G Insurance Brokers now for a free consultation and find the best insurance solution for your electric vehicle.
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