Sales of electric vehicles (EVs) in Australia are booming, accounting for almost one in ten new cars sold in 2024. With a growing range of EV makes and models on offer, it’s now easier and more affordable than ever for Australians to make the switch.
As with any car, having the right insurance is essential – but not all policies are the same, especially when it comes to covering the specialised needs of an EV. That’s why it’s worth comparing your options to find a policy that fits your EV and your budget.
What does insurance for an electric car cover?
EV car insurance isn’t a separate product, meaning your electric car will be covered under the same types of car insurance available for petrol and diesel vehicles. In Australia, the main insurance options are:
- Third-party car insurance: this includes third party property damage (TPPD) and, with some insurers, third party fire and theft (TPFT) cover. TPPD provides basic protection, covering damage you cause to someone else’s vehicle or property, but not your own. TPFT adds limited cover for your own vehicle if it’s stolen or damaged by fire, but still won’t cover accidental damage you cause to your own EV.
- Comprehensive insurance: comprehensive cover offers the broadest level of protection. It covers accidental damage to your EV, as well as theft, fire, vandalism and certain weather-related events. You’ll also typically have access to optional extras such as windscreen replacement, roadside assistance, and more.
Note that some insurers may only offer comprehensive cover for electric vehicles due to their higher upfront cost and specialised repair needs.
Is EV charging equipment included under a car insurance policy?
Many comprehensive car insurance policies include cover for EV-specific equipment, though this varies between insurers. Cover may extend to:
- Home wall chargers and charging cables
- Charging accessories kept in or with the vehicle
- Damage caused by battery issues such as thermal runaway
However, it’s important to read the Product Disclosure Statement (PDS) carefully to see what’s included, as cover for charging equipment is not always standard. If you’ve installed a home charging unit, you may also need to consider whether it’s covered under your home insurance policy.
Why compare car insurance policies through Savvy?
Why are EVs more expensive to insure?
Electric cars often come with higher insurance costs compared to traditional petrol or diesel vehicles. This is due to a number of factors, including:
- Higher vehicle cost: EVs generally have a higher upfront price, which means the cost to replace or repair them is greater.
- Expensive replacement parts: many EV components, like batteries and specialised electronics, are costly to manufacture and replace. These parts often need to be imported, adding to the expense and delay.
- Repair complexity: EV repairs can be labour-intensive and require specialised skills. Since not all mechanics are trained or equipped to repair electric cars, this limits the number of repair centres and increases costs.
- Supply and demand: because EVs are still less common, there’s a smaller supply chain for parts and fewer trained technicians, which pushes up costs.
As an example, a brand new Tesla Model 3 costs around $60,000 to buy and $2,802 on average to insure. Compare that to the most popular vehicle in Australia, the Ford Ranger, certain models of which can cost up to $37,000 more than a Model 3, but is around $1,000 cheaper on average to insure, according to Youi.
Insurance premiums can also vary between different EV models. For example, Tesla vehicles tend to be more expensive to insure than some more affordable models like those from BYD.
While EV insurance may currently be pricier across the board, you can still save on your insurance by comparing quotes from different providers. Shopping around helps you find coverage that fits your budget and offers the best value for your specific electric vehicle.
Types of car insurance
Should I consider my energy plan when buying an EV as well?
Yes – if you’re planning to regularly charge your EV at home, it’s worth reviewing your electricity plan. While you’ll save money by no longer paying for petrol, charging your car can add significantly to your household energy usage. According to the Electric Vehicle Council, charging an EV can increase a household’s electricity consumption by as much as 50%.
Some electricity providers in Australia now offer dedicated EV electricity plans that include free or discounted charging during off-peak hours. These plans can help you manage your energy costs and make the most of your EV’s efficiency.
How to insure your EV through Savvy
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Fill out an online quote form
To generate relevant quotes, you’ll need to provide information about yourself, your car and the cover you’re after. This quote form is simple and should only take minutes to complete.
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Compare offers
Once you’ve done this, you’ll be able to compare personalised quotes based on premiums, inclusions, exclusions, claims process, excess, optional extras and more in minutes.
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Pick one you like and buy it
If you find a policy you’re happy with, you can complete your car insurance purchase through our partner's website. Once bought, your cover can kick in as soon as today.
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