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

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  | Published: 28 July 2021

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With the face of the future right in front of us, electric cars have not only become a reality but also a common occurrence. Many people are opening their hearts and homes to a new e-car and doing every bit of what they can to contribute to the green automobile cars. Electric cars in the UAE have also taken a turn for the best. With the increasing use and appearance of electric cars in the UAE and Dubai, you must understand all about owning an electric car and electric car insurance. Let’s cover all the basic fronts related to e-v car insurance in the USE.

Electric Car Insurance - Is it Different from Conventional Insurance?

In its roots, an e-v car insurance plan is pretty much the same as that of a conventional car insurance plan offered by insurance companies. It protects the car and the owner from third-party liabilities and damages caused by collisions and accidents. The only difference between a conventional car insurance plan and an electric car insurance plan is that the latter is significantly more expensive.

Is Electric Car Insurance Mandatory in the UAE?

Yes, e-v car insurance is mandatory to have in the UAE if you want to own and drive it. The same rules that apply to a conventional car insurance plan apply here as well. If you do not have a proper e-v car insurance cover for your e-car, the vehicle can get seized, you will get fined and your license will be branded with additional black points. So, it is safe to say that you need electric car insurance in the UAE not only to protect the car but also to abide by the rules.

Types of Electric Car Insurance Plans

Third-Party Liability Cover: Same as that of conventional car insurance covers, third-party electric car insurance only covers the third-party liabilities arising from an accident. Here, the insurance comes into play if you, the policyholder, are at fault.

Comprehensive Cover: A comprehensive car insurance plan for e-cars covers both own and third-party damages. Third-party damages are covered in case you are at fault in the concerned accident that caused the damage. Own damages are covered in case of collisions, accidents where you are at fault, natural disasters like storms, man-made disasters, fire and theft.

Out of these two types of available electric car insurance plans, a minimal third-party liability plan is mandatory for all cars. You can upgrade and go for a comprehensive car insurance plan if you like as well though.

One of the most common questions about electric car insurance is whether it covers battery failure. While the exact details depend on each provider, batteries damaged dues to accidental reasons are covered to be replaced by most providers.

General Inclusions of an Electric Car Insurance Plan

  • Injuries caused to the third party and damages caused to the vehicle
  • Damages caused to own car in the accident
  • Injuries sustained by the owner-driver of the car
  • Damages caused by accidental fire or explosion
  • Damages caused by natural disasters like storms
  • Damages caused by man-made disasters like vandalism, riots, etc.
  • Theft or total loss of the car
  • Damages to the battery and charging cables belonging to you – can also be an add-on in some cases

Available Add-ons for Electric Car Insurance Plans

  • No-depreciation cover
  • No claim bonus protection cover
  • Accessories damage cover
  • Return to invoice cover
  • Roadside assistance cover
  • Engine protection cover – which can be replaced with battery cover for electric cars

General Exclusions of an Electric Car Insurance Plan

  • Driving without a proper valid license
  • Driving under the influence of alcohol
  • Any excluded natural or man-made disaster as per the insurance terms
  • Damages due to voluntary negligence
  • Damages due to normal wear and tear
  • Damages when driving recklessly

Why is Electric Car Insurance More Expensive?

Electric cars are still a new entity in the world that is used to drive fuel-based conventional vehicles. This means that there are lesser mechanics who understand the workings of an electric car and can repair damages. This also means that the spares parts of electric cars are not easily available all over the UAE. All that comes together and results in a very expensive repair session on part of the insurance company, if the policyholder submits a claim. The significantly higher risk of paying a hefty claim amount makes e-v car insurance plans more expensive than conventional ones. On top of all this, electric cars cost is high than conventional cars, upfront. Combined, all these factors make e-v car insurance more expensive than conventional fuel car insurance.

How Can I Buy Electric Car Insurance in the UAE?

Electric car insurance in the UAE can be bought using both online and offline methods depending on the options available with the providers. E-v car insurance plans can be bought offline from the branch offices of your insurance provider or through an insurance broker. Once you get in touch with either of the two mentioned entities, they can guide you through the purchasing process.

To buy e-v car insurance online, you can opt for two methods – either buy it from the online website of the provider or via an insurance aggregator like PolicyBazaar UAE. If you have already finalised the plan and a provider, you can simply log in to the application portal of PolicyBazaar UAE or the provider and proceed with buying the e-v car insurance plan. All you will need to do is obtained the required set of documents, fill up the application form, choose the plan and add-ons and finish the payment.

If you want to take your time to explore and compare different providers and plans, you can simply take assistance from PolicyBazaar UAE. Our financial experts will help you choose the right plan fitting to your needs and you can take your time to compare different providers and plans.

Documents Required to Buy E-v car insurance Plans

You only need a basic set of documents to purchase an electric car insurance plan:

  • Car registration card and documents
  • Your driving license
  • Proof of name such as Emirates ID
  • GCC specification certificate for your vehicle

FAQs

Q1. Do all car insurance companies offer e-v car insurance in the UAE?

Ans. Electric cars have been a part of the world for a long time now however, they only recently started gaining popularity. Many top insurance providers in the UAE offer e-v car insurance now but many are still incorporating this new addition. You can easily find a few alternatives to choose a plan that suits your e-v the best.

Q2. How can batteries increase the price of an e-v car insurance plan?

Ans. Technicians advise that the batteries of an electric car should be changed even after minor collisions or accidents. So, every claim that comes through to the car insurance companies may include a change of batteries in it. This can increase the expenses and risk for big pay-outs significantly for the provider. Hence, the insurance plans become more expensive. 

Q3. Do insurance companies offer discounts on electric car insurance plans?

Ans. Electric and hybrid car insurance plans in the UAE often come with an additional discount due to the green initiatives. Although, it completely depends on the providers and their policies.

Q4. Do I need an additional cover for car chargers and cables?

Ans. Cables and car chargers are not really at risk of getting damaged when you are charging your e-car at home. However, there is a significant chance of damages when you need to charge the car at public portals. If you think you will use your car enough for public portal charging to be a regular thing, take the car charger and cable cover add-on.