UAE Insurers Introduce Chinese EV-Specific Insurance Policies As Demand Grows

(MENAFN- Khaleej Times) Chinese electric vehicles are taking over the UAE market, with many new models and vehicles set to enter this year. Some insurers have already begun issuing policies tailored to Chinese EVs, and while premiums are priced much higher than petrol cars, insurers say better pricing models and more competition is gradually helping stabilise premiums.

While the segment is still underserved, insurers in the UAE are gradually introducing more specialised offerings to support the growing number of electric vehicles on the road.

** Higher EV premiums**

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A spokesperson from Policybazaar, an online platform which compares different insurance policies, said they have seen a 30 to 40 per cent increase for EV premium inquiries in the last 12 to 18 months, especially for Chinese EV brands such as BYD, MG, and Geely.

Premiums for EVs are currently 10-30 per cent higher on average, and in some cases up to 72 per cent higher than petrol vehicles, said Toshita Chauhan, Chief Business Officer of general insurance at Policybazaar.

What draws it apart from other vehicles is that EVs have higher repair costs due to its expensive battery and other specialised servicing requirements, which in turn impacts how premiums are priced.

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One trend that became apparent was the EV premiums sharply increased after the 2024 floods, which rose around 21 per cent in some cases, according to Chauhan.“EV insurance premiums average around Dh4,992 annually, significantly higher than traditional cars. However, insurers have been quick to adapt,” she told Khaleej Times, adding that premiums are gradually stabilising as more insurers enter the EV space.

“As the market matures, premiums have started stabilising, with some reductions of up to 9 per cent reported in 2025,” she added.

** Spike in inquiries**

eSanad, a UAE-based digital insurance platform, reported a whopping 40 per cent increase in Chinese EV inquiries and policy placements. The company itself is working with multiple insurance firms to design structured solutions designed specifically for Chinese EVs.

“In recent months, Chinese EVs have represented one of the fastest-growing segments within our retail motor portfolio, across both individual and fleet buyers,” the CEO of eSanad’s CEO Anas Mistareehi, told Khaleej Times.

He said he expects more insurers to introduce more EV-focused products this year, but suggested that insurers will have to move beyond“conventional underwriting frameworks.”

“Historically, insurance companies tend to be cautious when entering new risk categories. This is understandable. New vehicle technologies and particularly EV platforms, require updated actuarial models, battery risk analytics, and repair-cost data that legacy systems are not always built to process quickly,” the CEO said.

** New insurance solutions for Chinese EVs**

Shory, an AI Insurtech firm, has also recently launched an insurance solution that is specifically designed for Chinese EVs. The policy is meant to address some of the key challenges owners of Chinese vehicles face related to insurance acceptance, premium affordability, and access to qualified EV repair facilities, according to Shory.

This was done so in partnership with Electric Vehicle Services and Fidelity United Insurance Company.

Aoun Al Smadi, CEO of Shory UAE, said that they identified an opportunity to design a special insurance solution that reflects the realities of EV ownership, and that will support the growing EV market in the UAE.

“The transition to electric mobility is not only changing how vehicles are powered, but also reshaping risk, repair standards, and customer expectations,” Fidelity United’s CEO, Ahmed Nasef, commented.

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