Electric Car Insurance in the UAE
Overview
Looking at the continuous degradation of environmental factors, every country is trying to take an initiative towards an environmentally-friendly approach. Out of them, the UAE is strengthening its pace to acquire this valuable standard. So, in this country, electric vehicles are a practical means of commuting. Even the government of UAE has signified the importance of reducing carbon emissions and amplified the benefits of using electric cars.
It has also introduced the values of RTA registration, Free Salik Tag, and Free-parking zones for electric vehicles. However, to make your electric car drive legally appealing, it is crucial for you to secure an electric car insurance plan. In this article, we will discover more about this insurance plan along with its advantageous inclusions.
What is Electric Car Insurance?
If we define electric car insurance in simplest form, it is a mandatory plan for an electric car, just like other conventional vehicles throughout the UAE. If you have an electric vehicle, you need to register it via third-party car insurance. Car insurance for electric cars can financially safeguard your vehicle against damages due to vehicle breakdowns, natural disasters, personal injuries, and much more. Comprehensive benefits are included in the policy.
There are multiple insurance companies present in the UAE that are offering electric car insurance at a reasonable rate. The comprehensive insurance policy delivers coverage to both the car owner along with the third party. It offers financial protection against theft, liability, and damages, just like traditional car insurance.
However, it has some unique components that make it different from the traditional ones. Some of the unique features of EV car insurance include charging equipment, batteries, specialised repairs, additional coverage options as per your convenience, etc.
Is it Compulsory to have insurance for an electric car in the UAE?
Yes, it is mandatory for you to get electric car insurance in the UAE. It is an eminent traffic law to acquire third-party liability insurance no matter what type of vehicle you ride. This ensures you are financially protected from injuries and damages caused to others during an accident.
The EV car insurance delivers battery and component protection as batteries in electrical vehicles are expensive and needs insurance against theft, damages, and malfunction.
The insurance protects the owners from financial losses due to any type of accident.
In most cases, EV insurance delivers emergency towing services, charging support, repair assistance, etc.
Types of Electric Car Insurance Coverage Available in UAE
There are mainly two major types of electric car insurance coverage available in the UAE. You have to choose the best electric car insurance that fits your requirements.
Comprehensive insurance coverage
This is one of the common insurance types. It safeguards against damages caused due to theft, accidents, fire, natural disasters, and serious vandalism. It involves personal accident coverage that delivers financial protection for the owners and the passengers in the event of any accidents.
Third-party Liability Coverage
It is a mandatory demand in the UAE, where it protects you against claims made by any third parties for bodily injury and property damage due to accidents done by your electric vehicle.
What is covered under the EV Car Insurance Plan?
Electric vehicle insurance covers a lot of integral factors that are customised to meet the unique requirements of electric vehicles. Some of the effective inclusions are listed below:
Battery Coverage.
Third-Party Liability.
Damage protection caused by natural disasters, accidents, theft, vandalism, etc.
Charging equipment coverage like insurance for cables, home charging stations, public charging issues, etc.
Fire and theft coverage.
Roadside assistance.
Personal accident cover.
What is not covered under the EV Car Insurance?
We all understand that EV car insurance denotes extensive coverage. However, this insurance policy has certain exclusions. So, before buying this, ensure these exclusions for better knowledge:
Charging negligence includes damages due to improper charging attempts, power surges, or usage of unauthorised chargers.
Natural degradation of batteries.
Illegal driving without a valid license or the owner violating proper traffic laws.
Electrical or mechanical failures.
Off-road usage.
Unauthorised repairs.
Intentional damages and frauds.
Electric Car Insurance Add-Ons
As an authorised EV owner, you can customise your electric auto insurance as per your requirements. There are various add-ons you can rely upon while purchasing your insurance.
Charging equipment covers things like cables, adapters, and home charging stations from accidental damages.
Covers battery protection.
Delivers roadside assistance and emergency charging.
Zero depreciation cover.
Personal accident cover.
Return to invoice cover.
Key replacement cover, etc.
How to Get Electric Car Insurance Quotes?
Achieving electric car insurance quotes is easy. It includes a simple process that every EV owner should understand. Here, we have listed PIB Secure’s seamless steps that can make the process easier for you.
Visit The Insurance Provider’s Site
You need to go through different insurers’ websites to compare their EV insurance quotes. With PIB Secure, you can easily access the competitive electric vehicle insurance quotes in one place.
Deliver Vehicle Details
After choosing the insurer, you have to enter valuable vehicle details like the manufacturing year of the vehicle, car model, registration number, battery capacity, and its type.
Prefer Your Coverage Type
Now you have to choose the type as per your requirements. It can be a third-party insurance or you can go for comprehensive insurance.
Opt Your Reliable Add-Ons
You can customise your policy with additional coverages like roadside assistance, battery protection, charging equipment coverage, etc.
Compare the Quotes
Now, you have to review different quotes from multiple insurance providers.
Submit Your Required Documents
In this process, you have to submit authentic documents for verification that include:
Driving License
Address Proof
Car Registration Certificate
Copy of Your Emirates ID
Copy of your Residence Visa and Passport
Driving History.
Proceed For the Payment
Once you are assured about the policy plan, make the payment through the insurer’s portal. The insurer will send you the best EV car insurance digitally.
Key factors that influence premiums for electric vehicles
There are many crucial factors that influence the premiums for electric vehicles. Some of the major factors have been listed below:
Vehicle Cost
This is one of the significant factors that influence the premiums. We all know that EVs are generally more expensive than fuel cars. So, the insurance rate of this vehicle type will be higher as compared to the fuel car.
Battery Value
The cost of the battery in electric vehicles is extremely high. So, as it makes the vehicle powered, you need to adopt one for your usage. The insurance provider may charge a bit higher for your EV battery.
Demand for Special Technicians
The EV requires modern repairs due to exclusive elements present in it. So, the demand for special technicians can affect your premiums.
Benefits of Electric Car Insurance
Here, we have listed some benefits of the best EV insurance policy in the UAE:
Acquiring a comprehensive insurance plan can give you better financial coverage than third-party plans. You can also enhance the coverage with add-ons.
You will remain protected against third-party liabilities if any uneventful incident happens.
With electric car insurance, your damages will be repaired quickly.
The insurance remains true to RTA laws in the UAE.
You can get financial reimbursement against uncertain incidents like accidental death, bodily injuries, etc.
EV Car Insurance Premium for Third-Party Electric Car Insurance
Third-party electric car insurance is considered to be the minimum coverage needed for electric vehicles in the UAE. As mentioned earlier, it covers damages that happened to other properties, vehicles, individuals, etc. Some factors that affect third-party insurance premiums include legal regulations, vehicle type and power output, risk assessment, and driver profile. The premium range mainly falls between AED 750 to AED 1,400.
How to file a Claim for EV car Insurance?
Here is a brief list of how you should file your claim for EV car insurance:
Inform the insurer about the incident.
You need to file an FIR for the mishap.
Provide evident photos and videos of the incident.
Provide evident photos and videos of the incident.
Seek assistance from your insurance company.
In the final step, you will get your vehicle recovered.
Frequently Asked Questions about EV Car Insurance
Are there any discounts for electric car insurance?
Yes, there are many insurance providers that offer multi-policy discounts, eco-friendly discounts, etc. These discounts will give rise to lower premiums.
What is the process for renewing my electric car insurance policy?
To renew your insurance policy, you need to choose a reliable policy and confirm all your electric car information accordingly. Select the coverage that fits your preferences and pay the premium online to renew your policy.
Do electric cars require special coverage for batteries and charging equipment?
Yes, electric cars need special coverage for batteries and charging equipment, as these are unique components and may attract specific failures and challenges.
Can I transfer my existing car insurance to my new electric vehicle?
Yes, you can transfer your existing car insurance to a new electric vehicle by informing your reliable insurer and getting it endorsed. However, you may need to pay the transfer fee.
What should I do if I have an accident with my electric car?
If you have an accident with your electric car, make sure to inform your insurer about the incident. Delaying the notification may cancel out your claims.
Is there a limit to the cumulative bonus I can earn on electric car insurance?
Yes, there is a cumulative bonus in the EV car insurance which is generally expressed as the percentage increase in the sum insured. This can range from 5-50% per claim-free year.
What is the cumulative bonus for EV car insurance?
It is a no-claim bonus offered by the insurers to not make any claims during a policy year.
Is there any offer from the government to buy electric cars in the UAE?
The UAE government provides many incentives to buy electric cars such as free public parking, minimised registration fees, free Salik tags, etc.
Does electric car insurance cover damages due to battery fires or technical failures?
Yes, comprehensive EV insurance majorly covers damages due to battery fires and technical failures.
What happens to my insurance coverage if I install aftermarket modifications on my electric vehicle?
Aftermarket modifications can impact your insurance coverage by rejecting your claims and maximising your premiums.
What should I do if my electric vehicle is involved in a theft or total loss?
In this situation, you have to report it to the insurance provider and deliver the necessary documents. The providers will evaluate your claims and accordingly deliver you the compensation.
What should I do if my electric vehicle is involved in a theft or total loss?
In this situation, you have to report it to the insurance provider and deliver the necessary documents. The providers will evaluate your claims and accordingly deliver you the compensation.
Do insurance policies cover charging costs if my vehicle runs out of battery?
Standard policies generally don’t cover charging costs. However, if you seek add-ons for your EV insurance, the provider can cover the charging costs.