Do you own an electric car in the UAE? Or plan to purchase one soon? Well, the good news is here. The electric car insurance in the UAE has undergone a big drop in renewal rates for 2025. See every detail regarding the new EV insurance rate drop below.
Meanwhile, you can check out the certified pre-owned electric cars with CARS24 UAE.
Also read: Next-gen BMW iX3 EV teaser released, debut on September 5 with 800km range
Electric car insurance in the UAE: Rate drop explained
As per a recent online report, the electric car insurance rates in the UAE have gone down significantly for 2025. The Q3-25 is witnessing renewal rates drop up to 9% and even more.
This is the first drop in the past 15 months, which has brought joy for EV sellers. In fact, some insurers, like the Central Bank of the UAE, have encouraged discounts of up to 25% on the renewal premiums for the EVs.
The primary reason behind the insurance renewal rate dropping is the growing understanding of the insurers about the electric vehicle technology. Additionally, new Chinese EVs have introduced a variety of electric vehicles that are sustainable and last long, which has changed the perception of the insurers.
Moreover, there is a consistent push from the EV makers to the insurers to drop values so that potential customers can buy new EVs fearlessly.
New insurance rates for EVs in the UAE
Last year, when the rains struck the UAE in April 2024, insurance companies were left stranded with long-overdue bills for the EVs that were flood-affected. However, for 2025, things are opposite with the new rates for customers.
The online reports hint at a drop of up to 9% in the insurance rates, which has brought down the average insurance rate to Dh5,270. Now this rate is substantially lower than the previous year’s insurance rates.
Many Chinese EV dealerships have silently reported that the potential customers were refraining from buying their cars as they worried about the insurance costs approaching every 12-month interval.
However, the variety of EVs has now led to the diversification of the risk profiles, price points, and, cumulatively, how the insurance premium rates are structured.
Additionally, the increasing charging points for customers means the EVs are now becoming more practical. A recent report hints at more than 200 fast chargers being planned to be installed in Dubai in the coming months.
Our verdict
The decrease in electric car insurance rates in the UAE is a positive step in the growth of the electric vehicle segment. Moreover, this will attract new EV brands from around the world to step into the UAE car market, leading to more investments and economic growth.
