Electric cars cost a lot to insure in Australia. Comparing them to cars that run on fuel, you realise that there’s a huge gap in the pricing for insurance.
Nobody wants expensive insurance for his or her electric car. It is always ideal for individuals to look for cheaper insurance for electric cars in Australia. It is all about value for money.
Insurance for electronic cars is on the high side because of some factors, such as the high purchase cost, the lack of common body parts, and the lack of servicing centres.
But in the long run, you will realise that it is worth it to purchase an electric car because of the money you save on fuel costs and the overall benefit to the environment in general.
Are electric cars cheaper to insure in Australia?
In general, insurance for electric cars is on the high side.
Insurance premiums in Australia for electric cars are not that cheap. Most electric car insurance providers in Australia charge for electric cars. You realise that electric car owners pay as much as 20% more on insurance than their fuel-using counterparts.
Below are some of the reasons why electric cars are not cheaper to insure in Australia;
- Price of Electric Cars: Initially, the price of an electric car will cost you more than a car that runs on fuel, but in the long run, it’s cost-effective. The higher cost of electric cars affects their premiums.
- Expensive body parts: Electric cars have sophisticated body parts that are very expensive to replace.
- Lack of body parts Supply: Body parts of electric cars are very rare, causing demand to exceed supply. The shortage causes electric car body parts to be expensive.
- Cost of Maintenance: In Australia, there are not many electric car service centres and technicians.
- Safe handling: Electric car batteries require special handling and disposal methods, which increase their insurance costs.
You should note that regardless of the above reasons, electric cars are generally cheaper to own because they have lower running costs and maintenance expenses.
Very soon, insurance prices for electric cars will drop as they continue to saturate the Australian market and their body parts become more common.
What is the cheapest electric car to insure in Australia
The MG4 electric car is the cheapest electric car to insure in Australia. Not only is it cheap to insure, but it also doesn’t cost a lot to purchase, with a starting price of AU$52,092.23.
Also, the cost of owning an MG4 electric car is low because the cost of servicing is low, there is no payment of road tax, and the company car tax is lower than for traditional cars.
Based on information from Youi, one of the top insurance providers in Australia, the MG4 electric car has an average annual insurance premium of AU$18159.86.
List of cheaper insurance providers for your electric car
In selecting an insurance provider for an electric car, consider the insurance providers that have good packages with affordable pricing and will also stand by their insurance policy in case something happens to the car through no fault of yours. Let’s look at the list of cheaper insurance providers for your electric car;
- Budget Direct Comprehensive: They give a 15% discount on your first-year premium online insurance purchase
- Youi Comprehensive: They provide good customer service and include roadside assistance as part of their comprehensive insurance packages.
- Australia Post Comprehensive: In terms of policy coverage, Australia Post Comprehensive offers more. You get AU$114.53 off on your first-year premium on online insurance purchases.
- Bingle Comprehensive: This is the cheapest comprehensive policy that covers car damage, theft, and storms.
- QBE Comprehensive Green Company: The QBE Comprehensive comes with a policy of 3-year new car replacement if your car is written off.
How can I get cheaper insurance for my electric car in Australia?
To get cheaper insurance for your electric car in Australia, use the tips below;
- Compare prices: Do a price survey of the insurance packages provided by the different insurance companies in Australia. You can do research online by using websites like Finder. Focus on insurance companies that are into providing insurance for electric cars.
- Focus on what you need: Consider the insurance package that fits exactly what your car requires to cut costs because comprehensive insurance packages are very expensive.
- Check your car for safety features: Electric cars with safety features like collision avoidance systems tend to get insurance discounts from some of the insurance providers.
- Low Mileage Discount: Look for insurance companies that give discounts to electric car owners who seldom drive their cars.
