The Emirates Insurance Federation (EIF) has said that insurance premiums for electric vehicles in the UAE are expected to decline to more affordable levels, as more EV brands now have authorised dealers in the local market.
This expansion has improved access to spare parts, enabling faster and cheaper repairs—key factors driving the anticipated reduction in insurance costs.
The EIF’s Vice Chairman and Chairman of the Motor Insurance Technical SubCommittee Mohammed Mazhar Hamadeh told Emirates Today that previously, EV insurance premiums had risen mainly due to the lack of authorised dealers, limited spare parts and high component costs—especially batteries, where any damage often results in a total loss.
Mr Hamadeh said he anticipates a fair decline in EV insurance premiums that benefit policyholders while ensuring insurers remain financially stable.
He added that UAE insurance pricing is competitive, with past increases driven mainly by company losses, and stressed that all pricing changes comply with Central Bank regulations.