UAE: Insurers hold talks with auto workshops on reducing costs related to electric cars
Source: Middle East Insurance Review | Mar 2023
Insurers are in negotiations with automobile repair shops, especially in Dubai, to reduce the costs of repairing electric vehicles to encourage individuals to buy environmentally friendly vehicles, said media reports.
Auto repair shops have provided spare parts for electric cars from more than one source, and the number of countries from which such vehicles are imported has been expanded, ensuring several options for users, according to a report in Emirates Today, citing a reliable source.
The source said, “This would encourage many insurance companies that are reluctant to insure electric cars because of the great risks in any malfunction in them.” He noted that the price of the battery of an electric vehicle is around AED80,000 ($21,780), equivalent to 50% of the value of the car.
He revealed that some repair workshops have managed to reduce the cost of repairing a battery and lowered the prices of other spare parts, a development which encourages many insurers to be willing to insure electric cars.
The number of electric and hybrid cars in the UAE is increasing rapidly, which is more evident in taxi fleets in a number of emirates.
The UAE has succeeded in converting about 20% of the automobile fleet of government agencies to electric vehicles, and it also aims to have 42,000 electric cars on the roads by 2030. M