Owners of electric vehicles are complaining about what they describe as inflated prices for vehicle insurance documents, compared to the cost of insuring traditional vehicles. They consider this one of the main challenges faced by owners of these vehicles on an annual basis when renewing their ownership. They shared their experiences with «Emirates Today» in their quest for affordable insurance for their electric vehicles, noting that the cost of the policy in some cases reached 7,500 dirhams, making insurance for an electric car an 'annual ordeal' that renews when renewing vehicle registration. Meanwhile, officials in the automotive sector said that insurance companies determine the cost of the policy for electric vehicles based on the potential risk ratio of costs in the event of any accident. They explained that some accidents affect the 'battery' of the electric car, which in turn represents a high value of the total value of the car, in addition to the fact that this type of car requires qualified maintenance experts and specific garages to carry out maintenance and repairs, and therefore its cost is high compared to traditional ones that can be repaired in all garages. They also pointed to the lack of agencies for some electric vehicles in the local market in the previous period, which made importing spare parts from external markets costly. They expect that this problem will gradually decrease with the growing availability of electric vehicles and their spread in markets at higher rates, and the greater availability of agencies for them. Annual Ordeal. In detail, consumer Alaa Kamal said: 'I was surprised by the large price inflation in the cost of insuring my European-made electric car, where the policy price reached about 6,000 dirhams.' Kamal pointed out that many companies refuse to insure electric cars, considering this one of the main challenges facing owners of this type of vehicle. On his part, consumer Mohammed Youssef said: 'I was surprised when I learned that the cost of the insurance policy for my American-made electric car reaches 7,500 dirhams, with the policy price increasing compared to the past two years,' confirming that 'insuring electric cars has become an annual ordeal that renews when completing vehicle registration procedures.' In the same context, consumer Samir Mahmoud shared his experience, saying that an insurance company asked him for 6,500 dirhams for insurance on his Asian-made electric car, although the car model dates back to 2021. He added: 'I inquired with the company about the reason for the high price of the insurance policy, and the answer was that the car does not have an agency in the local markets, and therefore its repair cost will be high in the event of any accident and the need to import spare parts from abroad.' On his part, consumer Basim Yahya confirmed that the cost of insurance and the high prices of electric car policies to a large and exaggerated extent, compared to traditional cars, are among the most prominent challenges of owning this type of vehicle, pointing out that several companies refuse to delay insuring them on the pretext that their repair cost is high. Repair Standards In this regard, automotive sector expert, Managing Director of 'Rolls-Royce Motor Cars' for the Arab Gulf in Dubai and the Northern Regions, Mamdouh Kheirallah, said: 'Repair standards are what determine the high cost of insuring some electric vehicles by insurance companies, compared to traditional cars.' He explained: 'Electric vehicles require expert technicians, and not all garages are technically qualified to maintain and repair this type of vehicle.' He added: 'The value of the policy for some cars is determined according to their repair history and its cost during accidents, and the most prominent of these examples is one of the famous American-made car brands, which requires a high cost when exposed to an accident, and therefore insurance companies resort to setting a high price to insure it, and in a way that exceeds all other electric vehicles, whose insurance fees vary on each of them according to insurance companies' estimates of losses, repair standards during accidents, and the availability of spare parts.' Car Battery On his part, automotive sector expert and Managing Director of 'Porsche Center Abu Dhabi', Waseem Khalil, said: 'The high cost of insuring electric vehicles is due to the specificity of those vehicles compared to their traditional counterparts, as some accidents may affect the batteries that represent a high value of the total value of the car, in addition to the fact that it requires qualified maintenance experts and specific garages to carry out maintenance and repair operations from accidents, and therefore its cost is high compared to the traditional ones that can be repaired in all garages.' He added: 'Some electric cars are famous for their high insurance value as a result of their need for a high cost during repair operations from accidents, in addition to the fact that some other Asian-made electric cars may not have local agencies for them, and therefore importing spare parts for them from external markets takes a longer time and a higher cost.' High Cost In the same context, sales advisor at one of the car agencies, Mohammed Alaa, said: 'The high cost of insuring electric cars, especially one of the famous American-made brands, and mainly due to the possibility of high costs of dealing with accidents of those cars, and the cost and availability of spare parts for them compared to traditional cars, especially with the difference in the nature of the work of each of them, and the dependence of (electric) on systems and batteries with a special nature that makes it have a higher cost when exposed to damage, while garages can provide spare parts for traditional cars quickly and at a lower cost.' Alaa expected that this problem will gradually decrease with the growing availability of electric vehicles and their spread in markets at higher rates, and the greater availability of agencies for them, which supports the possibility of reducing the cost of insuring them, especially for the Asian brands that have begun to spread their agencies significantly in the local markets recently, and Alaa pointed out that 'insurance companies determine the value on electric cars according to the ratio of potential risk of costs in the event of any accident, and according to previous market experiences through which the cost of insurance is evaluated.' Automotive Sector Officials: • Insurance companies determine the cost of the policy for electric cars according to the ratio of potential risk of costs in the event of any accident.
