As the electric vehicle market is booming all over the world, the insurance companies have adapted to meet the unique needs of EVs. It is important to talk about insurance for electric vehicles. Just like any other vehicle in the UAE, having insurance for an electric vehicle is also mandatory. Generally, the insurance doesn’t vary for electric vehicles in terms of types, but some key components set the insurance for electric vehicles apart from the normal car insurance out there.

Coverage:

• TPL( third party liability): covers the damages done to the third party, be it the vehicle, the person, or the property.
• Comprehensive insurance: covers the damages done to the third party
• Coverage against fire, robbery, natural disaster, and any other mishappening
• Battery protection: insurance companies also provide coverage for expensive lithium batteries
• Cover against any charging equipment accidents or issues, home equipment, and public equipment.
• Roadside assistance often included services like towing to charging stations or jump-start services.
• Fire and water damage. Any damage done to the battery by fire or water can easily damage the lithium-ion battery.

Insurance cost:

EV insurance is usually 10-20% more expensive than regular car insurance due to higher battery costs and repair expenses.

While the insurance premium for an electric vehicle is relatively expensive but the maintenance cost of EVs is generally lower than normal vehicles because of fewer moving parts.

Additional benefits:

Government Incentives: Lower registration fees and free charging at DEWA stations (for a limited time).Eco-Friendly Discounts: Some insurers offer discounts for EV owners to promote sustainability.

Major key differences between a car insurance policy and an EV insurance policy:

• Battery coverage: an EV ensures battery coverage in case of any accidents or mishappenings like a malfunction in the battery or any fire hazard, while a normal car insurance is not applicable for this
• Fire and water damage: EV insurance covers you against any fire risk or water damage done to your car or battery, while normal car insurance only covers the standard fire hazard
• Repair cost: The repair cost of EVs is more expensive due to specialized repair centers & components
• Premium cost: The premium cost of EVs is 10-20% higher than normal vehicles due to expensive battery replacement costs