Driven by insurance companies and vehicle repair shops

Negotiations to expand insurance for electric cars and reduce prices

• The UAE is driving change towards the future of electric cars in the region.

  Photography: Patrick Castillo

picture

A responsible source in the insurance sector revealed that negotiations are currently taking place between insurance companies and car repair shops, especially in Dubai, to expand electric car insurance and reduce its prices, in a way that provides acceptable insurance protection that encourages individuals to buy this type of car, because of its advantages. environmental.

Encouraging solutions

The official added to «Emirates Today» that, during the past two months, car repair shops have provided spare parts for electric cars from more than one side, and expansion has also been made in importing countries, ensuring several options for users.

And he continued, "This would encourage many insurance companies that are reluctant to insure electric cars, because of the great risks in any malfunction in them," noting that the price of the battery reaches 80 thousand dirhams, equivalent to 50% of the value of the car.

He revealed that the repair workshops provided a way to repair the battery, by replacing a part of it, which costs 6,000 dirhams, and also reduced the prices of some other spare parts from 4,000 dirhams to 1,200 dirhams, which encourages many insurance companies to accept insurance for electric cars.

give discount

The source said, “According to the amended document issued by the Central Bank, insurance companies may grant a discount rate of up to 25% on the gas-powered electric vehicle insurance policy, but it is an optional clause linked to not having accidents, and companies do not apply it currently, due to the high prices of spare parts.” In the event of an accident, or when the battery, which is the most important and essential piece in this type of car, is damaged.

Insurance value

According to information collected by «Emirates Today», the value of insurance for electric cars ranges between 1.5 and 5% of the value of the car.

The number of electric and hybrid cars in the country is increasing rapidly, which is more evident in taxi fleets in a number of emirates, while reports confirmed the increase in personal electric vehicles in recent years, as the decision to liberalize fuel prices issued in 2015 contributed to the acceleration of the pace of this shift.

Transformation leader

The UAE is a leader in the change towards the future of electric cars in the region, as it has succeeded in converting about 20% of the car fleet of government agencies to “electric”, and it also aims to enter about 42 thousand electric cars on the roads by 2030. The price of the electric car battery reaches up to 80 thousand dirhams, equivalent to 50% of the value of the car.

Repair shops reduced the prices of some spare parts from 4,000 dirhams to 1,200 dirhams.

Intelligent Mobility Strategy

In 2016, Dubai launched the Smart Mobility Strategy, which aims to transform 25% of the total means of transportation in Dubai into "self-driving" by 2030.

This strategy helps save 1.5 billion dirhams by reducing environmental pollution by 12%.

In addition, 85% of the taxi fleet in Abu Dhabi is environmentally friendly.

This percentage is distributed among hybrid “hybrid” vehicles that achieve a 50% reduction in fuel consumption.

Follow our latest local and sports news and the latest political and economic developments via Google news