The Role of EV Charging Infrastructure in Insurance Costs

Rise of EV Adoption in India

The electric vehicle market in India has seen exponential growth, with 56.75 lakhs EV registrations as of February 2025. Government initiatives like the PM E-Drive (PM Electric Drive Revolution in Innovative Vehicle Enhancement) scheme, FAME & FAME-II schemes are giving a boost to EV adoption and expansion of charging infrastructure.

EV charging infrastructure is also growing rapidly. India has now installed 29,277 public EV charging stations across states as of July 2025, with a fivefold increase in numbers in the last three years. Karnataka is leading at 6,097, followed by Maharashtra at 4,155 and Uttar Pradesh at 2,326. However, there is still a gap in the availability of public chargers, one for every 235 EVs. Also, charging infrastructure lags in certain geographies, especially for fast chargers, intercity corridors or in Tier-2 or Tier-3 cities. These challenges have a crucial impact on the insurance cost.

Why Insurance Pricing Is Higher for Electric Vehicles?

Here are some of the key reasons that contribute to the higher premium cost of electric bike insurance:

Higher Insured Declared Value (IDV)

One of the primary contributors to EV bike insurance premiums is the higher purchase value of the vehicle. EV bikes are generally costlier than their ICE version. EV batteries, electric motors, high-voltage wiring, and their components are expensive. Though EV bikes are cheaper to operate, the initial cost is on the higher side.

The repair or replacement of the batteries and electrical components can lead to a higher amount of claims. Hence, insurance companies charge higher premiums based on a higher insured declared value.

Limited Repair Centres

In tier II cities and other semi-urban areas, EV bike repair centres are fewer. Apart from metro cities, the repair of EV bikes can take a longer time in many cities. The repair cost can also be higher, considering the logistical costs. The requirement of a skilled technician for the electric bikes is also one of the factors that cannot be ignored. These things contribute to higher insurance premiums.

Impact of Charging Infrastructure

Charging infrastructure can have the following impact on the electric bike insurance premium:

• Poor charging conditions at public charging stations, improper charging at home due to wiring issues, poorly ventilated spaces, and fire can increase the risk of battery damage. Repair and replacement of the battery can become costlier for insurance companies.
• EV bike owners taking the shorter routes while travelling long distances due to a lack of infrastructure along the highway or inter-city can expose the bike to a higher risk of damage. This not only increases the cost of repair, but also increases the need for towing and roadside assistance, if the charge gets over.
• Driving the EV bike when the battery is low, due to the limited charging infrastructure, can make the bike owner anxious. And, this rage anxiety can lead to the use of non-ideal charging or the chances of being stranded, leading to damage and expenses.
• If your city has limited EV charging infrastructure, it can affect the resale value of your bike. Resale value and salvage are often the factors considered by the insurance companies while determining the bike insurance premium.

Necessary add-ons

Battery protection is often recommended and a necessary bike insurance add-on for new EV bikes. Though it enhances the coverage, availing this rider increases the amount of the bike insurance premium.

At Jio Insurance Broking, you can explore the electric bike insurance from various insurance providers. The digital platform allows you to compare various plans on the basis of their features, add-ons, coverage and cost, helping you to make the best and affordable choice.

However, consumer awareness, the government’s effort to enhance the charging infrastructure, policy, and regulations can be key to bringing down the insurance cost.

Conclusion

To conclude, charging infrastructure is not just a factor of ‘convenience’ but also a crucial input into electric bike insurance costs. The government’s effort towards green mobility, the auto industry's effort to offer affordable EV ownership, coordinated efforts in building strong charging networks, consumer awareness, and improving repair and service ecosystems will be key in shrinking the insurance cost gap between EV and ICE bikes.