Are Electric Cars Expensive To Insure In Australia?

Electric cars in Australia, Europe, and any part of the world cost more to insure than traditional cars.

This is because electric cars have high repair costs. Also, you require highly skilled mechanics to service electric cars.

On the other hand, using electric cars comes with enormous benefits for the environment.
The world is now shifting from the use of traditional fossil fuel cars to electric cars to cut down on the harmful effects of fossil fuels like petroleum and diesel on the environment.

Electric cars are becoming popular, and as a result, more research is being devoted to making them affordable to purchase, which will make them less costly to insure as they stand now.

The insurance cost for electric cars depends on the make and brand type. Now let us look at the average insurance cost of electric cars in Australia.

What Is The Average Insurance Cost For Electric Cars In Australia?

Insurance companies in Australia at first did not want to get involved with electric cars because they were much different compared to the cars on petrol and diesel.

Right from the onset, insurance for electric cars has been on the high side because they are more expensive and have high maintenance costs because of the sophisticated body parts.

Electric cars like Tesla are the highest compared to other electric car brands.

When you strike the average, the national average cost of insurance for electric cars is AU$2,014, which is for full coverage and AU$622 for minimum coverage.

Below is a list of electric cars and their average insurance costs:

How Expensive Can It Be For Electric Cars To Be Insured In Australia?

From the table above, you can deduce that insurance for electric cars can be very expensive, with the average full coverage premium going as high as AU$4,364 for the Tesla Model X.

The lowest average full coverage premium is for the Chevy Bolt, which also costs AU$2,007.

The general annual average that male drivers pay for insurance is AU$1,578, while female drivers pay AU$1,358.

The overall average cost of car insurance in Australia is AU$1,220.40, according to the Bill Shock Tracker survey.

This is way lower than the average amount of insurance that electric car owners pay for their cars.

The process involved in obtaining electric car insurance is not different from that of traditional cars; however, traditional car owners are sometimes offered discounts on their insurance packages compared to their electric car owners’ counterparts.

Drivers of electric cars have to battle with high electricity costs from charging their cars and also high insurance.

They pay an average of AU$ 661 for insurance per year compared to traditional car owners, according to the Drivers 2023 ownership costs survey.

Electric car owners in Australia pay a premium to insure their cars.
This is because electric cars have expensive body parts and batteries compared to other traditional cars.

Sometimes body parts have to be imported, and it 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.

Insurance for electric cars is high because of the high cost of repair and the requirement for highly skilled labour to maintain them in terms of servicing.

However, there are a lot of environmental benefits to using electric cars. As they become more popular and affordable, the problem of high insurance costs will be a thing of the past.

Insurance companies in Australia were initially hesitant to insure electric cars because of how expensive they were.

This is due to their high costs and maintenance requirements, particularly for expensive body parts. Tesla has the highest insurance costs among electric car brands.

On average, full coverage for electric cars costs AU$2,014, and minimum coverage costs AU$622.