Electric vehicles have gained popularity in India due to their environmental friendliness and relatively lower running costs. Also, the Indian government is committed to its promotion. India is now the 3rd largest vehicle market in the world. Hence, electric vehicles will occupy an important space in our country’s transportation landscape.
However, the advantages of electric vehicles are not just limited to their lower running costs and their low carbon footprint.
In this blog we will discuss the major advantages of EVs in depth, helping you understand why they are viable alternatives to the traditional internal combustion engine-based cars. We will also understand the electric vehicle insurance aspect, helping you understand the need for EV insurance and guide you on how to choose the insurance coverage for your electric vehicles.
Electric Vehicle Advantages
Discussed below are 10 primary advantages of e vehicles -
Advantage 1: Environmentally Friendly
Contrary to traditional vehicles, EVs produce zero tailpipe emissions. This eliminates harmful pollutants that otherwise contribute significantly to air pollution and climate change.
EVs use electricity as their power source. This eliminates the need for burning fossil fuels like petrol or diesel. This directly reduces greenhouse gas emissions (GHG). We know that GHGs are major contributors to global warming.
The absence of tailpipe emissions also makes EVs ideal for urban areas. Why so?
Because urban areas struggle with poor air quality especially due to vehicular pollution. Smog is also an issue of increasing concern in urban areas in India. The promotion of EVs therefore can significantly improve air quality in urban areas.
Additionally, EVs can be charged using renewable energy sources such as solar and wind power. This can further reduce their environmental impact. In essence, EVs with their lower carbon footprint can help India meet its commitments under the Paris Deal.
Advantage 2: Lower Running Costs
Electronic vehicles have lower running costs as compared to traditional ICE vehicles. This really is one of the main advantages of electric vehicles (EVs). This is due to several factors associated with EVs.
Firstly, EVs use electricity and not petrol or diesel. This results in substantial savings on fuel expenses.
Also, charging an EV cost much less than refuelling a traditional vehicle. This difference becomes even more important when considering the rising crude oil prices.
Moreover, if renewable energy sources like solar power are used to charge EVs it can further reduce electricity costs.
Secondly, EVs have simpler mechanics and require less maintenance. Their mechanics result in fewer moving parts to wear out or replace. This translates to lower maintenance expenses over time. Hence, EVs are a cost-effective choice even in the long run.
This combination of reduced fuel and maintenance costs makes EVs a financially attractive option for budget-conscious consumers.
Advantage 3: Minimal Maintenance Expenses
Another important advantage of EVs is that their maintenance expenses are minimal.
Traditional vehicles have complex internal combustion engines. However, this is not the case with EVs. EVs have fewer moving parts. This means less wear and tear. Eventually, this means lower maintenance costs over time.
So, if you own an EV expect fewer visits to the service centre. There will be reduced expenses on components like oil changes, exhaust systems, and cooling systems.
Regenerative braking in EVs also helps extend brake life by minimizing wear on brake pads. This does not mean that routine checks are not required for your electric vehicle. Routine checks and servicing are still necessary for optimal performance.
However, the simplified mechanics of EVs do contribute to a financially smoother ownership experience. This aspect saves money. It also reduces the time and hassle associated with vehicle maintenance.
Advantage 4: Financial Incentives
Another advantage of e vehicles is their appealing financial incentives to encourage their adoption. The Indian government offers various policies to make EV ownership more attractive.
It has taken significant measures to accelerate the adoption of EVs. They are promoting the installation of EV charging stations by providing capital subsidies through the FAME India Programme Phase II and state-level measures.
The government has introduced incentives such as:
- PLI Scheme
- Battery Switching Policy
- Special Electric Mobility Zone
- Tax Reduction on EVs.
These incentives target not only consumers but also local battery manufacturing. GST on electric vehicles now stands at 5% from earlier 12%. On chargers/charging stations, it has been reduced from 18% to 5%. The Ministry of Road Transport and Highways (MoRTH) has announced green license plates for battery-operated vehicles. MoRTH's notification has also advised states to waive road tax on EVs.
Advantage 5: Future-Ready Mobility
Electric vehicles (EVs) represent a future-ready mobility solution that aligns with global trends and India's sustainable development goals. As countries worldwide pledge to reduce reliance on fossil fuels, EVs emerge as a forward-looking alternative.
India's commitment to cleaner energy sources is evident in its proactive measures to promote EV adoption. EVs offer a seamless transition towards sustainable transportation. They really are an important component of the strategy to address climate change concerns. By embracing EVs, individuals contribute to a transportation ecosystem that supports long-term environmental preservation.
The growth of EV technology is a transformative shift in the transportation landscape. India can position itself as a key player in the global transition to electric mobility. In fact, we have already surpassed Japan to become the 3rd largest vehicle market in the world in 2022. EVs ensure that India's transportation landscape remains relevant and adaptable in a world focused on reducing carbon emissions.
Advantage 6: Enhanced Performance
Electric vehicles’ enhanced performance is one of the important advantages of e vehicles. Modern EVs feature advanced design and technology that deliver impressive driving experiences. The lightweight nature of EVs contributes to rapid acceleration and agility.
Electric motors provide instant torque, resulting in a smooth acceleration from a standstill. This improved performance not only matches but often surpasses that of conventional vehicles in some cases.
As manufacturers further invest in EV design, aesthetics, and functionality, the performance of these vehicles is only going to further improve. These advancements in performance not only make EVs enjoyable to drive but also contribute to their suitability for various driving conditions be it city commuting and highway cruising.
Advantage 7: Convenient Home Charging
Another unparalleled advantage of EVs is convenient home charging.
Traditional vehicles require trips to petrol stations. But, EVs can be conveniently charged at home. This eliminates the need to find fuelling stations and wait in line.
Home charging stations can be installed in a garage or driveway. This makes the charging process as simple as plugging in a device. EV owners can conveniently charge their vehicles overnight, taking advantage of off-peak electricity rates and ensuring a full battery in the morning.
EV owners can also benefit from battery-swapping services. This further enhances the convenience of EV ownership by eliminating concerns about the availability of conventional fuel.
Advantage 8: User-Friendly and Quiet
Electric vehicles (EVs) offer a user-friendly and quiet driving experience. With simplified controls and fewer moving parts, EVs are easier to operate. Hence, it is easier to drive them. The absence of a conventional internal combustion engine results in remarkably quiet operation. This reduces noise pollution in urban areas which is a significant concern nowadays. This aspect also enhances the comfort of passengers.
EVs are equipped with features that simplify driving, such as regenerative braking that recharges the battery while slowing down the vehicle. This user-friendly approach extends to the charging process as well. EVs can simply be charged by plugging in at home or using public charging stations.
Advantage 9: Optimized Space Utilization
Electric vehicles (EVs) excel in optimized space utilization. EVs offer more cabin space due to fewer moving parts compared to traditional internal combustion engine (ICE) vehicles. This enables manufacturers to design spacious and comfortable interiors. This in turn provides a friendly driving experience for passengers.
The absence of a bulky ICE engine also creates opportunities for innovative storage solutions. Additional storage compartments can significantly enhance convenience for car owners. EV drivetrain components are compact in size. This also allows for smarter placement of storage spaces.
Hence, EVs provide more versatile and adaptable interiors. This optimized space utilization not only enhances the overall car ownership experience. It is also a demonstration of the flexibility and innovation that EV technology brings to modern transportation.
Advantage 10: Long-term Savings
Another advantage of electric vehicles to EV owners is that they benefit from reduced running costs. This is due to lower electricity prices as compared to traditional fossil fuels. So, charging an EV is significantly cheaper than refuelling a petrol or diesel vehicle.
EVs have fewer moving parts and simpler mechanics. So, maintenance expenses are also lower. The combined effect of lower running costs and maintenance costs results in substantial long-term savings.
Beyond these savings, the government also offer financial incentives. For instance, in India, we have reduced GST rates to promote EV adoption.
With these combined financial advantages, EV ownership becomes a financially prudent choice in the long run.
Frequently Asked Questions
Do I need Car Insurance for Electric Vehicles?
Yes, car insurance or electric vehicle insurance is mandatory just like for any other vehicle. Third-party car insurance is mandatory in India under the Motor Vehicles Act and EVs are no exception to this.
Like any other vehicle, EVs also face risks like accidents, theft, and damage. Hence, EV insurance is crucial for your EV too. It provides financial protection, covering repair costs and liabilities in case of accidents. While EVs might have lower maintenance costs, EV insurance remains crucial to protect against unexpected events. This ensures you are stress-free while enjoying the benefits of eco-friendly transportation
Which insurance cover should I consider for an electric vehicle?
Alternative question “What type of insurance should I purchase for my electric vehicle?”
Similar to ICE vehicles, EVs can face risks such as accidents, fire, and theft. Having proper insurance coverage is vital to safeguard your EV.
Like for other cars, electric vehicle insurance is also of two types- Comprehensive car insurance and third-party car insurance. Opting for Comprehensive Insurance for your electric vehicle provides coverage for both Own Damage and third-party liabilities. Third-party EV insurance provides safeguards only against liability to third parties. Hence comprehensive car insurance for electric vehicle insurance is ideal to protect your electric vehicle. It will help you mitigate potential financial losses in case of accidents, theft, or damage to the electric vehicle.
Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the Insurance industry and products. It is advised to verify the currency and relevance of the data and information before taking any major steps. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.