23 Oct 2025

By 2030, EVs in the UAE are expected to make up more than 15 per cent of all sales and could reach about 110,500 vehicles five years later, according to PwC's recently released Mobility Outlook report.

One of the most common questions our Motor Insurance division gets asked relates to electric vehicle insurance. People often wonder how you approach electric vehicle insurance compared to traditional cars with an internal combustion engine and whether they are different.

There are certainly a few things that need to be considered, and it’s worth clarifying that EV-specific coverage usually needs to cover elements such as battery protection, charging equipment, and policies that cover electrical and software issues.

Typically, in the UAE, EV insurance can be more expensive because repair costs can be pricier. Also, EVs may have additional risks such as charging related damage or even battery fires – whereas these factors are non-existent in ICE vehicles.

While it’s typically more expensive, experts believe EV insurance rates will eventually decrease as the industry adapts and technology becomes more widely adopted. One of the reasons for this shift is that as more mechanics receive training in EV repairs, competition will likely increase, driving down labour costs. Currently, many EV repairs require manufacturer-approved service centers, limiting consumer choice and inflating prices.

Another important point is that improved battery technology could make a significant difference. With many automakers developing modular battery systems that are easier and cheaper to repair or replace, this shift could reduce the risk of insurers declaring EVs as total losses after minor accidents.

There’s also the case that as EV adoption grows, insurers are expected to collect more detailed repair cost data, allowing insurers to fine-tune pricing models.

Going further, with scaled production and advancements in battery manufacturing, the cost of EV components and replacement parts should decline. This will lower repair costs and, in turn, decrease insurance premiums over time.

However, when approaching car insurance, any type of car insurance, the process is fundamentally the same. Whether you’re driving a small car, or a supercar, whether it’s an ICE vehicle or an EV, at ADNIC, we’ve built our policies to match your needs, to make it quick and easy to buy the right car insurance at the best price.

There are lots of great reasons why our customers choose us for their car insurance. We’ll help safeguard the residual value of your car with options for repairs to be carried out at your vehicle’s dealership, also known as agency repairs. We also offer a choice of approved garages for outside-agency repairs for your convenience.

Whether you choose an EV or ICE in the end, you can feel assured that ADNIC has you covered no matter which vehicle you purchase.