EV repair costs, battery risks, and specialised diagnostics are pushing premiums higher. Here’s what’s driving the increase—and how you can still secure an affordable policy without compromising on essential coverage.
The short answer:
Electric car insurance costs more because EVs require specialised repairs, advanced calibration, and expensive battery packs that can turn even minor accidents into major claims. Insurers also have limited long-term data on new EV models and fast-evolving technology, adding uncertainty and a higher risk margin.
Five reasons EV premiums run about 30 percent higher
1. Battery and High-Voltage Risks
EV traction batteries are extremely expensive. Even minor damage can require full pack replacement or long diagnostics, leading to higher claim costs.
2. Specialist Repairs & ADAS Calibration
EVs need OEM-approved workshops, high-voltage procedures, and advanced calibration after accidents or glass repairs—adding labour time and cost.
3. Tech-Heavy Body Panels
Sensors built into bumpers, grilles, and windscreens make small collisions more expensive due to sensor replacement and recalibration.
4. Expensive Parts & Longer Downtime
EV parts aren’t always stocked locally, extending repair time and increasing courtesy-car or loss-of-use expenses.
5. Limited Long-Term Data
Frequent new EV models mean less claims history for insurers, creating uncertainty and leading to a higher risk margin in premiums.
Dubai specific factors you should know
Flood risk, while comprehensive policies often include natural perils, insurers saw elevated flood claims after the severe rains in 2024. Battery packs and low mounted electronics are particularly vulnerable to water exposure.
Heat considerations, the UAE’s climate stresses thermal management systems. While normal use does not void cover, some insurers consider increased degradation or thermal incidents when assessing risk for specific models.
Repair networks, agency repair options for Tesla and other EV brands can be limited and therefore pricier. Confirm the EV capability of any non agency network before opting down to save on premium.
How to pay less for Electric Car Insurance without weakening cover
- Compare EV specific wordings. Look for policies that explicitly mention battery damage and high voltage component cover under comprehensive, with clear exclusions you can live with.
- Right size your excess. A slightly higher voluntary excess can trim 5 to 15 percent off premium, as long as you are comfortable with the potential out of pocket.
- Choose the correct repair path. For newer EVs, agency repair may make sense for warranty and parts availability. For older EVs out of warranty, high grade approved garages with EV certification can cut costs.
- Add natural perils and roadside wisely. Flood cover is crucial, and flatbed towing with high voltage handling is worth it. These often cost little compared to the risk they offset.
- Bundle and qualify for discounts. No claims history, safe driver telematics when available, and multi policy bundles can reduce rates.
InsuranceHub.ae lets you line up multiple EV friendly policies and see these differences clearly, so you do not overpay for benefits you will not use.
Tesla insurance Dubai and other EV brands, what is different
Tesla, BYD, Mercedes EQ, BMW i, Hyundai Ioniq, and other EVs often carry higher glass and body repair costs due to integrated sensors. Windscreen claims can require camera or radar calibration, which increases cost. Confirm your chosen policy’s stance on ADAS calibration, battery immersion or impact, and OEM software reset charges. If you are eyeing the cheapest premium, make sure the network can actually fix your EV to standard.
Coverage you should not skip on an EV
- Comprehensive cover that includes battery, high voltage components, and natural perils
- Windscreen cover with ADAS calibration
- Flatbed roadside recovery and extended towing distance
- Replacement car benefits that reflect longer repair times
- Personal accident and third party liability limits that meet your risk tolerance
What to do after an EV incident in Dubai
- Do not start or charge the vehicle if you suspect water ingress or high voltage damage
- Call roadside recovery that is trained for EVs, ask for a flatbed
- Obtain the police report and notify your insurer immediately
- Share service manuals or OEM guidance if needed to speed EV safe handling
Where to get the best value in 2025
Use InsuranceHub.ae to compare Electric Car Insurance from 50 plus insurers side by side. You will see costs, deductibles, networks, and EV specific clauses at a glance, speak with an advisor who understands EV repairs, and complete purchase online in minutes.
| Cost driver | Why it raises EV premiums | What you can do |
|---|---|---|
| Battery pack exposure | Even minor damage can lead to large claims | Choose comprehensive with explicit battery cover, avoid flood water, use flatbed tow |
| ADAS calibration | Sensors in glass and bumpers add labour | Ensure windscreen cover includes calibration, pick EV capable networks |
| Parts availability | EV specific parts can delay repairs | Consider agency for new cars, approved EV garages for older cars |
| Limited data | New models mean more uncertainty | Compare multiple insurers each renewal, leverage no claims discounts |
Get EV quotes now
Ready to save on Electric Car Insurance without cutting essential cover Compare, choose, and buy online at insurancehub.ae. Our experts will help you understand the fine print and lock in the best value for your EV in Dubai and across the UAE.
