The absence of accredited agents and spare parts behind the increase in the prices of electric cars

The Emirates Insurance Union attributed the high prices of electric cars, including “Tesla” cars, to the absence of accredited agents inside the country, in addition to the high price of spare parts sometimes, and the lack of time sometimes.

“Electric cars, including (Tesla), are mainly based on (the battery), and any failure in it is a total loss, so I warned Reinsurance companies from them are not only in our region, but at the United States and Europe level, given the great losses.

Hamada’s comments came in comment on the complaints of dealers about the high prices of electric cars insurance, especially from the “Tesla” electric brand, as they made it clear that the cost of insurance on the “Tesla” car doubled three times between the years 2023 and 2025 until the price of the insurance policy by the current year reached a range Between 4.5% and 6% of the car’s value, some said.

Hamada continued: “The high costs and the absence of accredited agents are a high risk degree for companies, and is currently available in the market, which are regular repair workshops or distributors of the car only.”

He explained: “What happened is that every insurance company incurred losses, raised the price of the document, and this is logical, but the price lifting remains within the tariff set by the supervisory authority.”

The official of the Emirates Insurance Federation stressed that the ceiling allowed for the price of the Insurance Document on Electric Cars is 5% of the value of the car, a maximum, and no company has the right to raise the price for this percentage, so the 6% is inaccurate.

It is noteworthy that electric cars acquired 14.75% of the total car sales in the country during the year 2024, with expectations to increase the percentage to 22.32% by 2029.

The UAE encourages the shift towards the use of electric cars, and provides great facilities to ship them at the required speed, as the number of total shipping stations is expected to reach 500 shipping stations at the state level at the end of this year, while the latest official statistics published in May 2024 indicate that the number of electric cars in the country indicates He exceeded 40 thousand cars.

. Electric cars are based on the “battery”, and any malfunction in it is a total loss of the insurance company.