Electric Car Insurance: Types, Benefits, Cost and How to Buy?

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In recent years, electric vehicles have become a practical and environmentally-friendly means of commuting in the UAE. The government of the UAE itself has started emphasising reducing carbon emissions and has noticed the ecological and economic benefits of electric cars. 

The government has introduced some incentives for electric car drivers including -

  • A reduced Road and Transport Authority (RTA) registration and renewal charge - this way, the owner can save both time and money.
  • Free Salik Tag - Salik is Dubai’s automated toll collection system that all vehicles need to have while travelling on Dubai highways. The fee for Salik is nominal. However, if you are an electric car driver, this nominal charge will also be waived. 
  • Free-parking zones for electric vehicles
  • Free e-car charging points, which is one of the biggest incentives. Currently, vehicle drivers have access to more than 100 DEWA public electric vehicle charging centres around the Emirates.

To ensure that you effortlessly drive your electric vehicle in the UAE, it is important to secure an electric car insurance plan. In this article, we will understand what electric car insurance is and the major types of insurance for electric vehicles.

  • Comprehensive
  • Third Party
*Above mentioned prices are for Honda City EX 1.5L, 2017 model.
*Above mentioned prices are for Honda City EX 1.5L, 2017 model.

What is Electric Car Insurance?

A car insurance plan is mandatory for an electric car just like any conventional vehicle in the UAE, with third-party car insurance for electric vehicles is mandatory. You can opt for comprehensive electric car insurance if you want to financially protect your car against damages due to natural disasters, vehicle breakdowns, personal injuries, and more. 

In the UAE, several insurance companies have now started offering insurance for electric vehicles that are comprehensive in nature. The comprehensive electric vehicle insurance plans offer coverage to both the car owner and the third party.

If you don’t secure an electric car insurance plan in the UAE, you will be fined and your driving licence will be charged with additional black points. Thus, a car insurance plan for an electric vehicle is essential not only to reduce financial liability but also to abide by the rules on the road. 

Benefits of Electric Car Insurance in UAE

Listed below are the benefits of an electric car insurance plan in the UAE -

  • Protect Against Third-Party Liabilities - If anything uneventful happens like your electric vehicle injuring a third party or damaging their property and car, your car insurance will cover such liabilities.
  • Enhanced Coverage - When you buy a comprehensive electric vehicle insurance plan, you would get better financial coverage compared to third-party plans. On top of that, you still have the option to enhance the coverage by paying an additional premium for riders. 
  • Complies with the Law - Since a comprehensive car insurance plan includes third-party cover, which is mandatory as per the RTA law in the UAE, you can drive while abiding by traffic rules and steer clear of the penalties. 
  • Quicker Damage Recovery - With electric vehicle insurance, you can get the damages repaired faster than usual, as your insurance policy can help in covering the repair costs that may otherwise be unaffordable. 
  • Personal Accident Cover - With car insurance for electric vehicles, you get financial reimbursement against uncertainties like accidental death, partial/total disabilities, bodily injuries, and more.  

Types of Insurance for Electric Vehicles

Similar to standard car insurance policies, third-party liability coverage for electric vehicles only covers third-party liabilities and damages that result from accidents. If you, the insured, are at fault, then the insurance kicks in.

An electric car insurance policy with comprehensive coverage will pay for both personal injury and property damage. In case you were at fault for the accident in question, third-party damages are covered. Collisions, incidents in which you are at fault, storm-related natural disasters, man-made disasters, fire, and theft are all covered.

Of the two, all cars must have a third-party liability minimum policy. However, if you prefer, you can choose to upgrade and opt for a comprehensive auto insurance plan. 

Whether battery failure is covered by electric car insurance is one of the most frequently asked questions. Most carriers repair batteries that have been damaged accidentally, though the specifics vary as per the provider and the plan. 

Compare Car Insurance Plans

Top Electric Vehicle Insurance Plans in the UAE

Tabled below are the top electric vehicle insurance plans in the UAE -

Plan Name Excess Amount
Al Wathba Comprehensive (Garage) AED 750
Salama Insurance Comprehensive (Agency) AED 1,400
Fidelity United HVV Garage Repair AED 1,200
Adamjee Insurance Comprehensive (DynaTrade) AED 1,400
Oriental Insurance Third Party Only NA
GIG Gulf (Previously AXA) NA

Inclusions for Electric Vehicle Insurance Plans in the UAE

Here are the primary inclusions for the given electric car insurance plans in the UAE -

Plan Name Inclusions
Al Wathba Comprehensive (Garage)
  • Third-party Damage Limit - up to AED 2,000,000
  • Geographical Coverage for -
  1. Third-party liability - Only in the UAE
  2. Damage to own vehicle - Oman and the UAE
  • Cover for Strikes/Riots/MD
  • Cover for Loss of Personal Belongings - up to AED 1,000
  • Ambulance Service Cover
  • Car Registration Service
  • Windscreen Excess Waiver - up to AED 1,500
  • Cover for Fire and Theft
  • International Driving Licence Cover
Salama Insurance Comprehensive (Agency)
  • Third-party Damage Cover - up to AED 3,500,000
  • Geographical Coverage for -
  1. Third-party liability - Oman and the UAE
  2. Damage to own vehicle - Oman and the UAE
  • Cover for Losing Personal Belongings - up to AED 5,000
  • Emergency Medical Expenses Cover - up to AED 5,000
  • New Car Replacement if There is Total Loss (Auto Gap) - up to 6 months (for a brand new vehicle)
  • Valet Parking Cover - For damages due to an accident
  • Cover for Fire and Theft
  • Agency Repair
  • Cover for Windscreen Damage - up to AED 4,000
  • Ambulance Service Cover - up to AED 6,770 per person
  • Lock Replacement Cover - up to AED 1,000
  • Off Road Cover - for 4WD vehicles only
  • Cover for Child Car Seat Replacement - up to AED 2,000
  • Car Registration Service - Once a Year
Fidelity United HVV Garage Repair
  • Third-party Damage Cover - up to AED 2,000,000
  • Damage to Own Vehicle - up to 10 model years
  • Cover for Windscreen Damage - up to AED 5,000
  • Ambulance Service Cover - up to AED 6,770
  • Emergency Repair Expense - up to AED 1,000
  • Car Hire Cash Benefit
  • Emergency Medical Expenses - up to AED 5,000
  • Cover for Valet Parking Theft
  • Key Replacement Cover - up to AED 3,000 per claim
  • Cover for Infant Car Seat Replacement - up to AED 1,500 per claim
Adamjee Insurance Comprehensive (DynaTrade)
  • Third-party Damage Cover - up to AED 2,000,000
  • Geographical Coverage for -
  1. Third-party liability - Only in the UAE
  2. Damage to own vehicle - Only in the UAE
  • Cover for Damages due to Riots/MD/Strikes
  • Ambulance Service Cover
  • Labour Discount - 10% discount on repair at any DynaTrade Service Centre (you would be required to produce the documents at the reception for proof)
  • DynaTrade Repair Cover
  • Windscreen Excess Waiver
  • Cover for Fire and Theft
  • Excess Amount Discount - AED 100 off on the excess amount. You should present the documents as proof
Oriental Insurance Third Party Only
  • Third Party Damage Cover - up to AED 2,000,000
  • Geographical Coverage for Third-party Liability - Only in the UAE
GIG Gulf (Previously AXA)
  • Third Party Damage Cover - up to AED 3,500,000
  • Geographical Coverage for Third-party Liability - Only in the UAE
  • Ambulance Service Cover
see more

Exclusions for Electric Vehicle Insurance Plans in the UAE

The following are the exclusions for insurance for electric vehicles in the UAE -

Plan Name Exclusions
Al Wathba Comprehensive (Garage)
  • Emergency Medical Expenses
  • New Car Replacement if there is a Total Loss - Auto Gap
  • Cover for Valet Parking Theft
  • No Claim Discount Protection
  • Lock Replacement
  • Agency Repair
Salama Insurance Comprehensive (Agency)
  • Involuntary Loss of Employment Insurance
  • International Driving Licence Discount
Adamjee Insurance Comprehensive (DynaTrade)
  • Loss of Personal Belongings
  • New Car Replacement if there is a Total Loss - Auto Gap
  • Lock Replacement
  • Airport Pick and Drop Service
  • Emergency Medical Expenses
  • Involuntary Loss of Employment Insurance
  • Cover for Valet Parking Theft
see more cards

Add-Ons for Electric Car Insurance Plans in the UAE

Listed below are the riders for electric car insurance plans in the UAE -

Plan Name Add-ons
Al Wathba Comprehensive (Garage)
  • Personal Accident Cover -
  1. For Driver: up to AED 200,000 - Free
  2. For Passengers: up to AED 200,000 - Free
  • Car Hire - Vehicle Replacement: for 7 days - AED 60
  • Roadside Assistance - Free; includes -
  1. Mechanical assistance
  2. Lockout assistance
  3. Towing service
  4. Battery service
  5. Flat tyre service
  6. Off-road recovery
  • Natural Calamity - Free
  • Oman Cover (for own damage only) - Free
Salama Insurance Comprehensive (Agency)
  • Personal Accident Cover -
  1. For Driver: up to AED 200,000 - Free
  2. For Passengers: up to AED 200,000 - Free
  • Vehicle Replacement: 10 days - AED 110
  • Roadside Assistance - Free; includes -
  1. Riots/MD/Strikes
  2. Battery service
  3. Flat tyre service
  4. Towing service
  5. Mechanical assistance
  6. Lockout service
  7. Fuel delivery service
  8. Off-road recovery
  • Natural Calamity Cover (Natural Perils) - Free
  • Oman Extension (Orange Card): Own and Third-party Damage (Free for 1st year) - Free
Fidelity United HVV Garage Repair
  • Personal Accident Cover -
  1. For Driver - Free
  2. For Passengers: up to AED 200,000 per person - Free
  • Vehicle Replacement - AED 175 or AED 250
  • Natural Calamities Cover - Free
  • Roadside Assistance - Includes -
  1. Battery service
  2. Flat tyre service
  3. Towing service
  4. Car registration service
  5. Lockout service
  6. Fuel delivery service
  7. Off-road recovery
Adamjee Insurance Comprehensive (DynaTrade)
  • Personal Accident Cover -
  1. For Driver: up to AED 200,000 - Free
  2. For Passengers: up to AED 200,000 - Free
  • Vehicle Replacement: 7 days - AED 200
  • Natural Calamity Cover - Free
  • Roadside Assistance - Free; includes -
  1. Mechanical assistance
  2. Lockout service
  3. Flat tyre service
  4. Towing service
  5. International driving licence discount
  6. Battery service
  7. Fuel delivery service
  8. Off-road recovery
  9. Car registration service
Oriental Insurance Third Party Only
  • Personal Accident Cover -
  1. For Driver: up to AED 200,000 - Free
  2. For Passengers: up to AED 200,000 - Free
  • Roadside Assistance - includes -
  1. Breakdown or accident recovery services
  2. Vehicle towing 
  3. Flat tyre service
  4. Mechanical first aid
  5. Battery jump-starts
GIG Gulf (Previously AXA)
  • Personal Accident Cover -
  1. For Driver: up to AED 200,000 - Free
  2. For Passengers: up to AED 200,000 - Free
  • Oman Cover - AED 100
  • Roadside Assistance - Breakdown Recovery - Free (mandatory)
see more cards

Buy Car Insurance & Avoid Fine

How to Buy an Electric Vehicle Insurance Plan in the UAE?

You can indeed feel at ease while driving through the Emirates or leaving your vehicle parked in a valet lot if you have electric car insurance. Simply keep browsing policybazaar.ae, a third-party aggregator, to apply for insurance for electric vehicles. 

When you buy car insurance from Policybazaar UAE, you unlock access to amazing features and services like -

  • 24/7 customer care
  • Best car insurance plans at the best rates
  • Advice from industry experts in case you get stuck at any point of the application process
  • Platform to explore plans from the top insurance companies in the UAE in one place
  • Option to immediately connect with the industry experts via phone, WhatsApp, and email if you are stuck when making a decision about the suitable plan

To buy an insurance policy for an electric vehicle, select the car insurance tab on the portal's home page. Complete and submit the lead form to be directed to a new page where you can compare different electric vehicle insurance plans and their costs before making a choice.

Documents Required

Listed below are the documents required to apply for car insurance in the uae -

  • Driving licence
  • Car Registration Certificate (Mulkiya Card)
  • Address proof
  • A copy of your Emirates ID
  • A copy of your Passport and Residence visa (if you are an expat)
  • Driving History

Related Links - 

Electric Cars Costs: Buying, Driving, Maintaining E-Cars in UAE & Saudi Arabia
Electric Vehicles: All About Their Advantages, Challenges, and Comparisons
Merits and Demerits of Electric Cars
Top 10 Electric Cars in the UAE
5 Top Rated Electric Cars that you can buy in the UAE
How To Boost Your Electric Vehicle’s Range in UAE

Frequently Asked Questions

Do all car insurance providers in the UAE provide insurance for electronic vehicles?

Although they have been around for a while, electric cars have only recently begun to gain popularity. Even while most of the leading insurance companies in the UAE already offer electric car insurance, several are still integrating this new feature. For this reason, you should quickly browse a few options before selecting one that best fits your requirements.

Is there any additional cover for chargers and cables?

When you charge your e-vehicle at home, cables and car chargers are not actually at risk of harm. However, when you need to power the car at public charging stations, there is a sizeable risk of damage. You can take a car charger and cable coverage extension if you believe you will use your car frequently enough to make public portal charging regular occurrence.

 

Why is insurance for electric vehicles costlier than that for petrol or diesel vehicles?

Compared to traditional petrol and diesel automobiles, electric vehicles are significantly more expensive, which also tends to increase the car insurance premiums for such cars.

Do batteries affect the premium of your electric vehicle insurance?

Even after small crashes or mishaps, technicians suggest replacing an electric car's batteries. Thus, every claim submitted to the auto insurance companies may also include a battery replacement. However, as this can considerably raise the insurance provider's expenses and risk of receiving large payouts, insurance plans can increase the premium.

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