Electric car insurance in the UAE costs more right now. Premiums are 20% to 35% higher than for regular petrol cars. This is true even as more people buy EVs here.
You might think EV insurance would be cheaper. But insurers face new challenges with these cars. They need to cover new risks.
Why EV Insurance Costs More Now
Insuring an electric car brings unique costs. EV parts are often more expensive to buy. Repairing an EV needs specialized shops. Not many of these shops exist yet. So, repairs can take longer.
Skilled technicians are also in short supply. They need special training for EVs.
This means labor costs go up. The biggest worry for insurers is the battery.
EV batteries are very costly. A new battery can cost up to 50% or 60% of the car’s full price. Damaging a battery in an accident happens often. Replacing it is a huge expense. This raises the overall insurance price for you. You can learn more about electric car battery technology and costs.
What This Means for UAE EV Owners
The UAE’s electric vehicle market is growing fast. Many people are choosing EVs today. This trend shows no signs of slowing down. But higher insurance costs are a current reality for buyers.
Insurers have less data on EVs. They are still learning about common accidents and repair needs. This makes it harder to price policies perfectly. As more EVs hit the roads, this data will grow. This will help insurers offer better rates.
Experts believe prices will change. More repair centers will open soon. More technicians will get special EV training. This should help bring down insurance costs later. For now, be ready for higher premiums if you drive an EV. Reuters also reported similar issues with EV repair costs in other markets.
The market is stable for EVs. People are excited about them. But insurance companies must cover their risks. This leads to the higher premiums we see today. Keep this in mind when you think about going electric.
