The battery is the most expensive component in an electric vehicle, often accounting for 30 to 40 percent of the total vehicle cost. Understanding how warranty and insurance interact is essential.
What the Manufacturer Warranty Covers
Most EV manufacturers offer 8-year or 160,000 km battery warranties covering defects and significant capacity degradation below 70 percent. This warranty is separate from your insurance policy.
Where Insurance Fills the Gap
Your insurance covers battery damage from accidents, flooding, or electrical surges that are not covered by the manufacturer warranty. Without proper insurance, a battery replacement can cost AED 40,000 to AED 80,000 depending on the vehicle.
Avoiding Coverage Gaps
Review both your warranty terms and insurance policy carefully. Ensure your insurance explicitly mentions battery coverage and clarify whether degradation from an insured event is covered.
