5 Things Electric Vehicle Owners Need to Know About Buying Insurance in Singapore

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Electric vehicles (EVs) are gaining momentum in the market and it’s not without reason. An electric car offers several advantages over a car with a combustion engine especially in terms of sustainability and the environment. 

It’s no surprise that cars, trucks and other forms of transportation are one of the biggest producers of air pollution in Singapore. Emissions from these vehicles significantly contribute to ozone and particle pollution, both of which are very harmful to health, and can even be deadly. Cars and trucks also emit carbon dioxide, which is one of the greenhouse gases responsible for driving climate change.

So naturally, the Singapore government has taken some added measures to encourage more drivers to make the switch. Besides offering a rebate on the Additional Registration Fee (ARF) and revising the road tax framework for new EVs, there’s plans to double the number of electric car charging stations by 2030.

With that said, if you plan to buy or already own an electric car, here’s what you need to know about electric car insurance in Singapore.

1. There are limited electric car insurance options 

Although there is a push to make fossil fuels the way of the dinosaurs, not many insurance providers offer cover options specifically for EVs. As of this year, there are only 3 companies that insure EVs directly, without the need of an authorised broker.

This lack of options leaves little room for drivers to compare and choose the best car insurance policy for their vehicle. 

2. It’s difficult to get a direct quote online 

Nowadays, it’s easy to get a quick insurance quote online for conventional cars from various providers. All you need to fill in is your car’s make and model, year of registration, your birthdate and No Claim Discounts (NCD) percentage to get an instant quote. 

However, the pricing structure for electric vehicle insurance is yet to be streamlined as EVs are still rare to find on Singapore roads. It will take time for insurers to figure out how much premiums should be priced across the board. 

So, you may need to submit an enquiry with the relevant details in person or by email to the available insurers to get a precise quote for your EV. This takes a little more effort and time, which also makes it difficult to compare quotes in an instant. 

3. The premium highly depends on the car’s make and model

With that said, the premium you’ll have to pay for your electric car insurance highly depends on your car’s make and model, besides other factors. To put it simply, if your car is of a more premium make, your insurance premium will also cost more. 

4. EV car insurance is more tailored to your needs

The good news is, because your enquiry is specific and unique, you’re more likely to receive a quotation from the insurance provider that is more tailored to what you require.

Some insurers offer two types of electric car insurance premiums: per kilometer (km) or annual. So, if you don’t plan to do lots of miles with your EV then it may be cheaper to insure your electric car per km. However, the standard rules apply – the more expensive your car is and the more inexperienced at driving and/or younger you are, the higher rate per km you pay.

5. Some things are not covered by insurance

Electric car insurance typically has the same coverage as a regular car insurance plan with the usual optional benefits. This includes personal accident coverage, death or injury to third party, damage to third party property, loss or damage by fire or theft, natural disasters, medical expenses, towing, windscreen cover and claim excess. Of course, the main difference is in the premium cost. 

However, the general electric car insurance plan may not cover battery failure or other defects by default – you’ll have to add on the maintenance package which includes a comprehensive list of car parts that could potentially fail or wear out over time.

Electric Car Insurance – Is It Difficult to Obtain?

In case you were under the impression that buying insurance for an EV is a whole different ball game, it really isn’t. There are no extra hoops you have to jump through. Basically, you would have to make careful considerations of what you need and your financing options much like how you would for a standard petroleum car.  

So, if you’re weighing out the options of purchasing an electric car, do consider the overall costs and sustainability in the long run. Regardless of your final decision, always remember that safety takes first priority when you are on the road, and a reliable car insurance will make all the difference.

If you already own an EV and are exploring your options for electric car insurance, have a look at our article on factors to consider when choosing car insurance in Singapore. You’ll get a better idea of what to look out for.

The post Electric Car Insurance Singapore | 5 Things EV Owners Should Know appeared first on Car, Motorcycle & Travel Insurance Blog | DirectAsia Insurance Singapore.