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InsuranceMarket.ae tells us about hailing and insuring a hybrid

A new year is often a trigger for new investments, whether you’re an individual or a business, and it seems that Dubai’s Roads and Transport Authority (RTA) is no exception: having reportedly signed a contract to take delivery of 2219 new vehicles in expansion of Dubai Taxi Corporation’s fleet.

What is particularly interesting is that 1775 of those vehicles are ‘hybrids’, which when added to the 4000+ already in existence, means that 71 per cent of the DTC fleet is now operating greener. We asked InsuranceMarket.ae to tell us more about hybrid vehicles and how they are viewed when it comes to insurance.

“The market in the UAE for hybrids is an interesting one”, said Rachel Al Mughairi, chief engagement officer at InsuranceMarket.ae. “Given this is a ‘fuel rich region’, they’re not an obvious choice: however, in support of national goals, the government has led the way in procuring hybrid and full electric vehicles for many of its departments. Interestingly, the RTA reportedly ran a trial which found that their hybrid vehicles covered in excess of 550,000 km without a need for major maintenance or defect repair, and with running costs a key consideration for any consumer, this is something that would surely stimulate the private market too”, she added.

Avinash Babur, CEO, InsuranceMarket.ae, said: “Hybrids can typically cost on average 10-15 per cent more than their traditional fuel counterparts to insure: largely due to a lack of aftermarket repair parts and higher retail replacement value for the vehicle itself. These equal higher claims costs for insurers which in turn drive a need for higher premiums. The choice consumers have is therefore higher purchase and insurance costs versus a reduced running cost. Dependent on their circumstances, they could end up saving money by choosing this option”.

So, if you’re ‘fuelled’ to know more on the cost of ‘going greener’, call the friendly team at InsuranceMarket.ae for a quote on that ‘eco-friendlier’ vehicle.