Numerous factors contribute to the high insurance costs of electric cars in Australia.
According to the Insurance Council of Australia (ICA), there are a lot of factors that contribute to the high cost of insurance for electric cars.
Some of these factors include the high cost of body parts and the high cost involved in repair work, where you need highly skilled mechanical engineers for the servicing work.
Again, electric cars are naturally expensive, which adds up to their insurance charges.
All electric cars are more expensive to insure when you compare them to traditional cars.
The good news is that as the demand for electric cars in Australia continues to increase, the high cost of insurance electric car owners pay will be a thing of the past.
But for now, let’s look at why all-electric cars are more expensive to insure in Australia.
Are all electric cars more expensive to insure In Australia?
All electric cars are more expensive to insure in Australia.
When you put together all the costs involved, from purchasing to servicing electric cars in Australia, you realise that insurance for electric cars is more expensive.
The national average cost of insurance for electric cars in Australia is AU$ 3,080.08.
This is way more than the average cost of insurance for traditional cars in Australia, which is AU$1,220.40, according to the Bill Shock Tracker survey.
This is because insurance companies consider all these factors in their pricing. For instance, the price range for the Tesla Model 3 varies between AU$94,693 and AU$110,014 for the latest year the model was manufactured.
Insurance for the Tesla Model X is more than twice the national average of AU$3,081.62.
Also, looking at the price range for the Tesla Model 3 you realize that the insurance for such cars will be expensive.
What Is The Highest Insurance Premium For Electric Cars In Australia?
The highest insurance premium you would pay for an electric car in Australia is AU$4,290.40. This is the full coverage premium for Tesla model X.
Insurance premium for Tesla cars are the highest paying premium and Comprehensive insurance is expensive for electric car owners in Australia.
This is because electric cars have expensive body parts and batteries compared to other traditional cars.
Sometimes body parts have to be imported and only takes skilled technicians to be able to fix them. All these factors add to the cost, hence more premiums are paid to insure electric cars.
There are a lot of reasons why insurance for electric cars in Australia is higher than standard petrol or desired cars.
In Australia, electric cars are now gradually warming up into the market making it difficult to get body parts in case it needs fixing or to be changed.
Insurance companies see this as a financial risk and therefore increase premiums for electric cars.
Does All Electric Cars In Australia Need Insurance?
Every car and most importantly electric cars in Australia needs Insurance.
Because of the high cost involved in the purchase and maintenance of electric cars, it makes a lot of sense to insure your electric car.
In most cases, electric car owners pay more for insurance compared to traditional cars.
Gradually, people are buying into the idea of using electric cars in Australia.
The more people buy electric cars they become more common and hence finding their body parts and repair works won’t cost as much as previously.
The Australian Department of Energy projects that, the cost of electric batteries pack is close to 90 percent lower than they were in 2008.
This will help to drive down the high cost of insurance for electric cars in the long run.
What Is The Most Expensive Insurance For Electric Cars In Australia?
Comprehensive insurance is the most expensive insurance for electric cars in Australia.
The Australian EV Owners Drive 2023 Ownership Costs survey stated that electric cars are more costly to insure compared to traditional cars by an average of AU$1010.89 per year.
In general, electric cars in Australia are more expensive to insure.
For instance, insurance for electric cars like Chevy Bolt is less compared to other electric cars but when you compare it to all cars in general in Australia you realize it’s among the high-cost insured cars.
As demand for electric cars keeps increasing, insurance prices for electric cars will eventually fall. This is to say the law of demand and supply still exist in electric cars insurance.