Electric Car Insurance
As Australia shifts toward a cleaner, greener future, electric vehicles (EVs) are becoming more common on our roads. But while owning an EV is exciting and environmentally friendly, many Australians are still unsure how insurance works for these modern marvels. If you’re one of them, you’re not alone.
In this guide, we’ll walk you through everything you need to know about electric car insurance in Australia—from what it covers, how much it costs, and how to choose the right policy, all the way to some helpful money-saving tips.
Why Is Electric Car Insurance Different?
You might think car insurance is the same no matter what you drive—but when it comes to electric vehicles, that’s not quite true.
Electric cars come with high-tech components, expensive batteries, and specialised repair needs. Because of this, they can sometimes be more expensive to insure than petrol or diesel vehicles.
According to Compare the Market, the average repair cost for EVs is higher, and fewer mechanics are trained to work on them, which affects premiums.
A Quick Anecdote
Sarah, a Tesla Model 3 owner from Sydney, shared:
“When I got my first quote, I was shocked. It was almost $400 more than what I paid for my old Toyota Corolla. But once I compared different EV-specific policies, I found a much better deal—with more coverage.”
This shows how shopping around can really pay off.
What Does Electric Car Insurance Cover?
Just like with any vehicle, electric car insurance in Australia usually comes in three levels:
1. Comprehensive Insurance
This is the top-tier coverage. It usually includes:
- Accidents (even if it’s your fault)
- Theft and vandalism
- Fire, flood, and storm damage
- Damage to other vehicles or property
- Battery damage or theft (some insurers)
- Charging cable or wall charger cover
NRMA Insurance and RACV both offer strong comprehensive plans tailored for EVs.
2. Third Party, Fire & Theft Insurance
This is more budget-friendly and covers:
- Damage to others’ property
- Your car if it’s stolen or damaged by fire
3. Third Party Property Only Insurance
Covers damage you cause to someone else’s property but not your own vehicle. It’s the bare minimum legally required in some cases.
How Much Does EV Insurance Cost in Australia?
Insurance premiums for electric cars vary depending on:
- Your driving history
- Where you live
- Type of EV (Tesla, BYD, Hyundai Ioniq, etc.)
- Replacement cost of parts
- Availability of EV repair services nearby
Sample Estimates
| Electric Car Model | Estimated Annual Insurance (AUD) |
|---|---|
| Tesla Model 3 | $1,600 – $2,200 |
| MG ZS EV | $1,200 – $1,800 |
| Hyundai Ioniq 5 | $1,400 – $2,000 |
Pro Tip: Use tools like Canstar or Compare the Market to compare quotes quickly.
Step-by-Step: How to Buy Electric Car Insurance in Australia
Step 1: Know Your Needs
Ask yourself:
- Do I need full comprehensive cover?
- Is battery replacement included?
- Are accessories like chargers covered?
Step 2: Compare Multiple Quotes
Don’t settle for the first option. Use:
- iSelect
- Compare the Market
Step 3: Check for EV-Specific Perks
Look for:
- Battery cover
- Roadside assistance for EVs (charging help!)
- Discounts for installing a home EV charger
Step 4: Read the PDS (Product Disclosure Statement)
Don’t skip this. Some policies exclude battery degradation or limit charger coverage.
Step 5: Apply Online or Through an Agent
Once you’re confident, apply. Many insurers allow instant online applications.
What About the Battery?
The battery is the heart of your EV. It’s also very expensive—sometimes up to 40% of the car’s cost.
Some insurers will only cover batteries if they’re damaged in an accident. Others offer more generous policies, including battery failure or theft.
Check policies from providers like:
- Allianz
- Budget Direct
Are There Discounts for Driving an EV?
Yes, absolutely! More companies are recognising the value of eco-conscious driving.
You might get:
- Green car discounts
- Lower premiums for low mileage
- Rebates for installing solar charging stations
Youi and RACQ both offer special EV-friendly discounts.
Who Repairs Your EV After a Crash?
Not every repair shop can fix an EV. They need:
- Special training
- Safety equipment for high-voltage systems
- Manufacturer-approved parts
Look for insurance that partners with certified EV repairers. Some even let you choose your on preferred shop.
What If Your EV Runs Out of Charge?
This is a real concern. Luckily, many policies now include roadside assistance designed specifically for EVs.
Some even offer mobile charging units that can get you back on the road.
Read about EV roadside help from RAA and RAC WA.
Common Myths About Electric Car Insurance
Let’s bust a few myths.
“EVs Are Too Expensive to Insure”
Not true anymore. As EVs become mainstream, more affordable policies are emerging.
“Batteries Are Never Covered”
Many modern insurers do cover batteries, but always read the fine print.
“I Can’t Find an EV Specialist”
Australia now has a growing network of EV-certified mechanics.
Final Thoughts: Is Electric Car Insurance in Australia Worth It?
Yes—absolutely. As EV technology advances, insurance providers are adapting, making coverage more competitive and accessible. If you own or plan to own an electric vehicle in Australia, investing in the right electric car insurance is a smart and necessary decision.
Not only will it protect your valuable investment, but it also gives you peace of mind, especially when navigating new technology on the road.
Key Takeaways
- Compare EV-specific insurance policies from multiple providers.
- Look for extras like battery cover, roadside EV charging, and discounts.
- Use online tools like Canstar and iSelect.
- Don’t skip reading the Product Disclosure Statement.
- Stay informed and drive electric with confidence.
Ready to Get Covered?
If you’re in the market, take five minutes today to explore electric car insurance in Australia from trusted providers. Whether you drive a Tesla, a BYD, or something in between—your EV deserves the best.
