Electric vehicles, especially hybrid cars and completely electric bikes, have become quite popular in India in the past few years. The push for environment-friendly modes of transport that are cost-effective has also become stronger, leading to a rise in the sales of electric bikes. Other points of leverage for electric bikes are that they run on batteries and do not require fuel, do not produce high emissions, and fare quite well on the noise front, as well! Due to these advantages, some people have the perception that electric vehicles can be very expensive.
There are some aspects in which an EV bike may be more costly; however, there are several other regards, such as bike insurance, where an EV may be more affordable. Keeping that in mind, we look at some ways you can save money when buying an EV bike. *All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C apply
- Tax benefits applicable for EVs
To encourage more people to buy electric vehicles, the government of India has declared certain tax benefits that are applicable to EVs. Under Section 80EEB of the Income Tax Act, people opting for loans to buy electric vehicles can claim tax deductions up to ₹ 1.5 lakhs for the interest component of the loan. This benefit is valid only if you have not owned an electric vehicle before.
Furthermore, electric vehicles attract a lower GST rate as compared to regular bikes. You must note that tax benefit is subject to change in tax laws *
- A lower bike insurance price
Broadly, there are two types of electric two-wheelers: low-speed bikes and high-speed bikes. Low-speed bikes have low-capacity motors and energy-efficient battery packs. These bikes are meant for short-distance rides. As per prevalent rules, low-speed electric bikes are not mandated to be insured. This aspect can help you save on insurance costs.
However, low-speed bikes have limited use. If you are opting for a high-speed bike, then you can buy a well-designed electric scooter insurance. Such a policy would be more affordable compared to a regular bike insurance policy because the default risk factor is lesser with electric bikes.
High-speed electric bikes do not have a very large distance or speed range either and that considerably reduces the risks that the bike insurance policy must cover. So, you will be saving on bike insurance price here, as well. It is advisable to select comprehensive coverage so that your EV is protected from several kinds of damage. *
- No registration costs for low-speed EV bikes
If you have bought a low-speed EV bike for short-distance rides, then you do not have to undergo the process of registering it. A driving license may not be required either. So, you will be spared the costs for both these aspects as well.
In addition to all of the above, the electric vehicle policyIndia offers subsidies which differ across states; thus, lowering the purchase cost. The wording of an electric vehicle insurance policy may differ from that of a regular policy, since an EV’s components and functioning are quite different. Hence, you can make use of a twowheeler insurance premium calculatorthat can help calculate the insurance prices for your electric bike. The life expectancy and depreciation rate for EVs are different, and so is the coverage they can enjoy. That is why you must clear all your doubts with the insurer before going ahead. Lastly, if you are not entirely convinced about the narrative surrounding EVs, you can also consider electric hybrid cars in India that run on both fuel and battery power. *
* Standard T&C Apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.