Electric Car Insurance
Compare a range of car insurance options for your electric vehicle online.
Fact checked
Electric vehicles are growing in popularity on the Australian market, with battery electric vehicles making up 7.4% of all new car sales across the first half of 2023, according to VFACTS data. Because of this, it’s crucial for electric vehicle owners to know their coverage options. Whether you've already got your electric vehicle or you're still looking for the best EV to buy, Savvy can help you with a free quote.
How much does car insurance for an electric vehicle cost?
Electric vehicles, or EVs, generally cost more to insure than standard petrol models, despite the fact they’re often cheaper to run overall. There are several reasons for this, such as the following:
- EVs are often more valuable than standard, non-luxury models, with higher purchase prices
- The parts and technology included in EVs, in particular motors and batteries, are costlier to produce and replace
- In many cases, parts aren’t available in Australia, so they’re imported from overseas
- EV repairs require service centres with both specialist equipment and tradespeople, which aren’t common
- The Australian supply chain for EV parts is still underdeveloped, which leads to higher costs in itself
- Damaged batteries from electric vehicles are labour-intensive and time-consuming to repair
Aside from these factors, the true cost of car insurance for your EV will come down to the same variables which impact any other car insurance policy relating to you, such as where you live and how you use it. Some of these include:
- Vehicle make and model: the make and model of the electric car play a significant role in determining the insurance premium. Luxury electric vehicles or those with advanced technology such as a Tesla may have higher repair or replacement costs, leading to higher premiums compared to a BYD.
- Driving habits: similar to conventional car insurance, how often and how far you drive your electric car can affect insurance costs. If you have low annual usage, it may lead to lower premiums as there’s less exposure to potential accidents.
- Location: the location where you primarily park and drive your electric car can impact insurance costs. Urban areas with higher traffic and accident rates may result in higher premiums compared to rural areas.
- How it’s parked: on top of where you live, the method of parking can impact your premiums. Having your car parked on the road can expose it to road, environmental and theft risks which are drastically reduced by parking in a garage.
- Driver profile: your driving history, age and experience also influence the insurance premium for your electric vehicle. Safe drivers with a clean record may be eligible for discounts, as are older, more experienced drivers compared to younger road users, who are often considered higher risk.
What does electric car insurance cover?
What your policy covers will ultimately depend on the level of protection you buy and the terms and conditions of your insurer and policy. Comprehensive car insurance offers the most extensive range of covered events, as third party fire and theft insurance often only offers cover for damage caused by fire, theft, attempted theft and uninsured drivers. Third party property damage cover generally only extends cover for damage to your vehicle to uninsured driver damage.
However, under a comprehensive electric car insurance policy, you may be covered for the following:
- EV batteries: some policies may include specialist cover for the repair or replacement of EV batteries damaged in a covered event
- EV charging equipment: additionally, you may have access to cover for damage caused to your EV’s charging cables, wall box and adaptors, though these first two inclusions are only offered by a very select few insurers as of July 2023
- Accidental damage to your vehicle: if your car is damaged in a covered event, such as by collision, impact, fire, theft, malicious damage or weather (such as hail or flood), you could be covered
- Legal liability cover: if you’re responsible for damage to someone else’s car or property, your insurance can cover you for legal liability (often up to $20 million)
- New for old vehicle replacement: some insurers may also offer to replace eligible EVs which are declared a total loss in a covered event with a new vehicle of the same or similar make and model, which are subject to age and kilometrage restrictions
- Personal effects cover: if your valuables are damaged in a covered event or are stolen from your locked car (or are in your car when it’s stolen), you may be able to be reimbursed for them up to a set limit
- Hire car after theft or no-fault accident: in many cases, you can have the cost of a similar hire car covered if your vehicle is unable to be driven in a covered event, such as an accident which you aren’t at fault for, theft or attempted theft
Types of car insurance you can choose from
The most basic type of optional cover available, TPPD insurance can offer protection for damage caused by your vehicle to other people's property. However, no damage to your vehicle will be covered.
A step up from TPPD, TPFT insurance can also cover damage to your vehicle sustained due to a fire or theft (or attempted theft) in addition to third-party property damage if you're in an at-fault accident.
The most extensive (and expensive) form of cover, comprehensive car insurance can also offer cover for damage to your vehicle in an accident, collision and certain weather events on top of the areas TPFT covers.
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Savvy’s comparison service includes selected products from a panel of trusted insurers and does not compare all products in the market. Any advice presented above or on other pages is general in nature and doesn’t consider your personal or business objectives, needs or finances. It’s always important to consider whether advice is suitable for you before purchasing an insurance policy. We always recommend readers to consult the Product Disclosure Statement (PDS) of different policies before purchasing your car insurance.