Drive EV? What you save on fuel may be needed elsewhere

HIGHER REPAIR COSTS, RISKS MAKE INSURING AN EV 35% MORE EXPENSIVE IN UAE

- BY JUSTIN VARGHESE

Electric vehicles are gaining speed across the UAE, but many drivers are finding that owning one comes with hidden costs — especially when it comes to repairs and insurance.

While overall car insurance prices have stayed stable this year, premiums for electric vehicles remain about 20 to 35 per cent higher than for petrol cars, according to insurance experts.

The UAE continues to lead the Gulf in electric and hybrid vehicle adoption, with about 24,000 units sold in 2024, but insurance experts from Sukoon and Fidelity had earlier flagged that insurance and repair infrastructure is still catching up to the pace of electric mobility.

Costly components

The main reason behind higher insurance premiums is the cost of electric vehicle components, particularly batteries and motors, which can make up nearly 40 per cent of a car’s total value.

If damaged, these parts are expensive and complex to repair or replace. A new battery can cost Dh60,000 to Dh80,000, and only a handful of workshops across the UAE are fully equipped to handle such repairs.

Higher claim ratios