UAE: Why electric vehicle insurance cost is now 72% higher than petrol cars. world News
Electric vehicles (EVs) are obtained significant tractions in the United Arab Emirates, but their insurance premiums are much higher than 72% of petrol cars. This cost is inspired by inequality, repair complications and flood -related damage, increasing sales, infrastructure development and rapidly extended EVs supported by the growing consumer interest.
Increased insurance cost refers to repair complications and market transition
The average annual insurance premium for electric vehicles in the UAE has reached approximately 4,992 compared to AED 2,895 for petrol or diesel cars. This 72% difference is mainly due to high repair costs, especially for special components such as batteries, which often require international sourcing and limited local repair expertise.Talk to The nationalHitesh Motwani, deputy CEO of INSURANCEMARKET.Ae, explained that special components such as EV batteries often require international shipping, and are increasing the limited number of repair centers in a limited number of repair centers in the UAE.The floods in April 2024 increased these issues, increasing widespread battery failures and more pressure on the insurers. As the EV sector matures, insurance pricing is expected to develop, with data-operated models that consider factors such as battery status, charging habits, and vehicle technology. The insurers are also beginning to work more closely with the authorized repair network to streamline claims and reduce long -term costs.
Adoption and infrastructure expansion
The UAE EV has emerged as a regional leader in adoption, 13% of the sales of all new cars in 2023 with electric vehicles is more than 0.7% in 2021. It represents between 28,000 and 33,000 new EVs, including plug-in hybrids, entering the market within a year.The rapid expansion of an increasing limit of inexpensive electric vehicle models and rapid expansion of charging infrastructure is the major driver behind the growing EV adoption of the UAE. Market data shows a clear change in consumer preference, supported by government and private sector investments in better access, increased battery technology and clean mobility.In particular, the joint venture of Abu Dhabi between Adnoc and TAQA is to install 70,000 EV Chargers by 2030. Battery progress now enables several EVS to travel over 400 km at the same charge, some premium models more than 600 km, helping to worry about the address range.
EV market and battery confidence support market expansion
The UAE used EV market is also growing rapidly, increasing supply, better strength and comprehensive consumer acceptance. Online platforms are reporting an increase in demand for pre -owned electric vehicles, with a variety of options including both budget -friendly Chinese brands and premium European models.Buyers are now more focused on battery health, warranty status and charging compatibility. Longterm battery warranties, usually from 8 to 10 years, have helped reduce concerns about fall. New battery certification equipment is also promoting transparency and buyer’s confidence in the secondary market.
Industry optimism and long -term market Outlook
Despite the current challenges, industry experts see high insurance premiums as a temporary issue. Excess availability of vehicle data and close cooperation between insurers, regulators and manufacturers is expected to help stabilize the cost over time.Electric vehicle manufacturers continue to focus on innovation in range, design and user experience. For example, the premium models now offer a certified driving range above 600 km, with the actual world purposable often between 500 to 550 km per charge.As the charging infrastructure expands and stabilizes resale values, luxury EVs such as Porsche Tycan maintain 80 to 82% price after three years, electric vehicle ownership is becoming increasingly viable. These developments align with the UAE government’s target that 50% of the vehicles on the road should be electric by 2050.
