EV Insurance in Australia: Why It Costs More and What Cover to Look For

Yes, electric cars usually cost more to insure in Australia. CHOICE’s January 2026 analysis of more than 16,000 comprehensive quotes put a new EV at an average $2,440 a year against $1,865 for a new petrol car, a gap of roughly 30 per cent. The reason is repairs: parts, specialist labour and above all the battery, which can turn a moderate crash into a write-off. What you get for the money varies more than the price does, so the policy wording on charging gear, battery damage and new-car replacement matters as much as the premium.

Why does insuring an EV cost more?

Because claims cost more. The Insurance Council of Australia’s 2024 EV paper cites UK survey data showing EVs cost up to 25 per cent more to repair and take 14 per cent longer. The local reasons it gives are familiar to anyone who has waited on a panel shop: most parts come from the manufacturer overseas, few repairers are set up for high-voltage work, a single job can need two technicians (one for the body, one for the electrics), and the car may have to travel a long way to reach one.

The battery is the big one. The same paper puts a replacement pack at roughly $7,500 to $30,000, up to 40 per cent of the car’s value, and describes the problem insurers keep meeting: a scratched battery casing where the cells inside are probably fine, but with no diagnostic data to prove it, the car is written off. That is why a low-speed knock underneath an EV can end very differently from the same knock on a petrol car. Your battery warranty does not help here, because it covers degradation and defects, not crash damage; our guide to EV battery replacement costs explains what the warranty does cover.

It is not all bad news. The ICA also notes that road-registered EVs do not catch fire more often than petrol cars, and CHOICE found the premium gap shrinks as cars age: EVs one to four years old cost 22 to 27 per cent more to insure than petrol cars of the same age, against about 30 per cent when new.

Which EVs are cheapest to insure?

The brand matters more than the drivetrain. In CHOICE’s sample, a new Geely averaged $1,622 a year, cheaper than the average new petrol car, and a new Kia $1,774. A new BYD averaged $2,220, a new BMW $2,706 and a new Tesla $2,985. Those are averages across many driver profiles at a standardised excess, so treat them as a guide to how insurers see each brand, not a quote.

If you are still choosing the car, run insurance quotes on your shortlist before you sign. On a $120,000 salary the difference between a $1,600 and a $3,000 premium is real money every year, and it will not show up on the sticker. Our guide to the cheapest electric cars in Australia is a sensible place to start the shortlist.

What EV-specific cover should you look for?

Most insurers do not sell a separate EV policy. NRMA says plainly that its car insurance options apply equally to petrol, hybrid and electric cars. The EV differences are in the detail, and these are the ones worth checking.

Battery damage. The battery is part of the car, so comprehensive cover should pay for damage from an insured event such as a crash, fire or flood. Youi and RACV both say so on their EV pages. The question to ask is about fire: RACV and Allianz both name battery thermal runaway as covered under fire, and Allianz adds the condition that the battery has been used and charged within the manufacturer’s specification.

The charging cable. This is where insurers genuinely differ. NRMA covers the portable charge cord as an accessory on comprehensive policies. RACV covers portable cables and adaptors that came with the car. Youi says charging cables “do not form part of the vehicle and are not automatically covered”. Cables are not cheap to replace and they live in the boot or in a public car park, so it is worth knowing which camp you are in.

The wall charger. Usually not a car insurance matter at all. NRMA and RACV exclude chargers fixed to your home, and NRMA says a permanently wired charger may be covered by its home building policy instead. Allianz is the exception we found: its comprehensive and Comprehensive Essentials policies cover wall chargers, mounts and cables you own. If you have just paid for a wall charger installation, check your home policy covers it.

New-car replacement. If a new EV is written off early, a new-for-old clause replaces it rather than paying market value. RACV offers this within three years on Complete Care and two years on Comprehensive, but only for vehicles weighing less than 2.5 tonnes. Batteries are heavy, so if you drive a large electric SUV, check its weight against that limit. Allianz offers a new EV if yours is written off within two years of manufacture, on Comprehensive only.

Agreed or market value. Agreed value fixes the payout when you take out the policy. Market value pays what the car is worth on the day. Agreed value gives you more certainty if the car is written off; market value can leave you short if used prices for your model fall.

Repairer choice. Allianz advertises EV-certified repairers and RACV an EV and hybrid-qualified partner network. Ask whether you can choose your own, and whether that repairer is qualified to work on high-voltage systems.

Roadside assistance. Youi includes roadside assistance with EV comprehensive policies and will tow an out-of-charge EV to the nearest charging station. Other insurers sell roadside as an add-on, and they differ sharply on EVs; we compare them in insurer roadside assistance for EVs.

What about Tesla insurance?

Tesla owners in Australia can buy InsureMyTesla, which is issued by Zurich Australian Insurance rather than by Tesla. Its listed features include cover for your own Tesla charging cables and adaptors, a new replacement car in certain write-off cases, and cover for some liabilities arising from charging the car. That last one is unusual and worth asking any insurer about: who pays if someone trips over your cable at a kerbside charger?

Which questions should you ask before you buy?

Read the Product Disclosure Statement, or ask these questions on the phone and note the answer.

1. Is the traction battery covered for accidental damage, and is thermal runaway covered under fire? Are there conditions about how it is charged?
2. Is the portable charging cable covered? Only the one supplied with the car, or a replacement you bought too?
3. Is a wall charger covered under this policy, or do I need my home building policy?
4. Is there new-car replacement, for how long, and is there a weight or price limit?
5. Is the car insured for agreed value or market value?
6. Who repairs the car, and are they qualified for high-voltage systems? Can I choose my own repairer?
7. Is roadside assistance included, and will it tow a flat EV to a charger rather than a repairer?
8. What is the excess, and does it change for an at-fault claim or a younger driver?

If the car comes through a salary-packaged lease, the insurance is often bundled in, priced by the provider’s partner. You can usually take your own policy instead, and our EV novated lease guide covers what to ask the lease provider.

Premiums and policy terms change often. Everything above was checked on each insurer’s website in September 2026, and the PDS you are issued is what counts.