Hybrid car ownership is on the rise in Australia as more drivers look for fuel-efficient, environmentally friendly options. Recent data shows plug-in hybrid (PHEV) sales alone almost doubled in early 2025 compared to Q4 of 2024.
Whether you drive a mild hybrid (MHEV), hybrid electric (HEV) or PHEV, having the right car insurance is essential. It can protect you if your vehicle is damaged, stolen or written off, offering financial security and peace of mind. By comparing hybrid car insurance policies, you can find cover that suits your needs and fits your budget.
What does insurance for a hybrid car cover?
There’s no special insurance product just for hybrids, but most standard car insurance policies can cover hybrid cars. What you're covered for largely depends on the level of car insurance you choose, whether that’s third party property damage, third party fire and theft, or comprehensive cover.
Because hybrid vehicles are often more expensive than petrol cars and may require specialised repairs, many hybrid car owners take out comprehensive car insurance policies that offer more protection and support for hybrid-specific components and risks. This can include:
- Fire cover: hybrid vehicles may be more prone to fire than petrol or fully electric cars, so ensuring your policy includes cover for fire damage could provide additional peace of mind.
- Choice of repairer: not all repairers have experience with hybrid-specific components, so having the option to choose a specialist you trust can be useful.
- Agreed value cover: hybrids often have a higher price tag than equivalent petrol models. Choosing to insure a car for an agreed value rather than market value means you can agree the amount you’ll receive if your car is written off at the start of your policy, offering more certainty.
- New car replacement: if your hybrid is written off within a certain period or under certain conditions, some comprehensive policies will replace it with a brand-new vehicle of the same make and model.
- Specialised equipment: depending on your insurer, certain hybrid-specific components or accessories may be included under your policy.
Does car insurance cover charging equipment for plug-in hybrid electric vehicles?
Some comprehensive car insurance policies may include cover for charging equipment used with plug-in hybrid vehicles. This could extend to charging cables and home charging stations you own, if they’re lost, stolen or damaged as part of an insured event.
Cover may also include:
- Battery repair or replacement if it’s damaged due to an insured incident like a collision or fire (though general wear and tear won’t be covered).
- Thermal runaway – a fire caused by battery overheating – which is a risk specific to hybrid and electric vehicles.
However, it’s important to note that some of this equipment, especially home charging stations, might fall under your home insurance policy rather than your car insurance, so you should check with your provider to understand exactly what’s included.
Why compare car insurance policies through Savvy?
Are hybrid cars more expensive to insure than petrol vehicles?
- Higher vehicle prices: hybrid models typically cost more upfront than similar petrol versions, which can increase the cost to replace or repair them in the event of a claim.
- Specialised parts and repairs: repairs can be pricier, as hybrid components (like electric motors and battery systems) require specific expertise and aren’t as widely available as standard petrol parts.
- Availability of repairers: not all mechanics are equipped to handle hybrid technology, which can limit options and increase labour costs.
Let’s look at an example comparing real comprehensive insurance estimates for the petrol and hybrid versions of the 2024 Hyundai Kona N Line, sourced from Compare the Market.
| Vehicle type | Estimated annual premium range |
|---|---|
| Petrol Hyundai Kona | $1,103 – $2,701 |
| Hybrid Hyundai Kona | $1,181 – $2,744 |
| Quotes are based on a 30-year-old male living in Adelaide with a full licence, no recent claims, driving 15,000 km annually and opting for comprehensive cover. | |
As you can see, while hybrid insurance premiums are generally higher, the difference in this case is relatively modest, starting at around $78 more annually at the lower end of the premium range and $43 more at the higher end. This suggests that while you might pay a bit more to insure a hybrid, it’s not a drastic increase.
Are hybrids more expensive to insure than electric vehicles?
The price difference between insurance for hybrid cars and electric cars is more significant, according to recent research by Compare the Market. According to its bi-annual EV Insurance Index, the average comprehensive insurance premium for a fully electric vehicle is around $2,134, while hybrid and PHEVs average is about $1,649.
As electric vehicle technology becomes more common and repair services expand, the cost of EV car insurance may fall. For now, however, hybrids tend to offer a more affordable insurance option, sitting comfortably between petrol vehicles and fully electric cars.
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If I’m buying a PHEV, should I look at a new electricity plan?
If you’re buying a plug-in hybrid electric vehicle (PHEV), it may be worth reviewing your energy plan and potentially switching to an EV-specific electricity deal if eligible. These plans are designed to help reduce the cost of charging your vehicle at home by offering discounted rates during off-peak hours, or even free charging periods. This not only helps reduce strain on the power grid but can also lead to significant savings on your energy bills.
Many energy retailers in Australia now offer these plans. While they typically cover fully electric vehicles, many also include plug-in hybrids – though not all do. It’s important to check with your energy provider to confirm whether your specific PHEV is eligible.
How to insure your hybrid vehicle 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.
