Why Are Electric Vehicles So Expensive To Insure In Australia?
If you like to save money on purchasing fuel for your car, then obtaining an electric car for personal benefit is not a bad idea.
Electric cars do not emit fumes like the original cars, which makes them environmentally friendly.
Nonetheless, when it comes to insurance, it amounts to more compared to diesel and petrol cars.
When you compare the advantages and disadvantages of using an electric car, you realise that the advantages will outweigh the disadvantages in the long run.
It is estimated that the prices of insurance for electric cars will lessen as they become more familiar and their body parts continue to increase on the Australian market.
High expenses from charging, maintenance, and repair work on your electric car will cause your insurance to increase.
In their quest to cushion electric car owners in terms of paying for their insurance, most governments have put in place various insurance assistance programmes to assist electric car owners with their insurance premiums.
Factors Influencing Electric Vehicle Insurance Costs in Australia
The factors influencing Electric Vehicle insurance costs in Australia are;
The price of the electric car
Electric cars do not operate like the ordinary fuel-using cars we know.
Just like any other electric device, they run on rechargeable batteries. A tonne of scientific analysis and innovation goes into their construction, making them very costly.
For example, you can get a fuel-using car for as little as AUD$30,000.00, compared with AUD$88,000.00, which is the average electric car cost in Australia.
Rare body parts
The body parts of electric vehicles are rare. This is because the vehicles themselves are not common in the Australian market.
Because of the gap in the supply of body parts, it is expensive. You will pay as much as about $AU 9,500.00 to replace your faulty electric vehicle battery with a brand new one in Australia.
Fault repairs are expensive
Electric vehicles are expensive to repair because of the high level of innovation that goes into their construction.
You will be confronted with the challenge of getting a competent electric car technician to help you with the repairs. These technicians and repair stations are not common.
Why Electric Vehicle Insurance Rates Differ
Electric vehicle insurance rates differ from one driver to the next for reasons like:
Your record when it comes to driving. Insurance providers will want to know how careless you are when it comes to driving.
The cost of insurance for someone with a responsible driving record will be lower than for someone with a lot of driving infractions.
Whether you have been driving for a long time or are a newbie when it comes to driving,. Unskilled drivers are more prone to getting into accidents and breaking traffic regulations.
Also, it will be riskier when it comes to providing insurance for someone who has little knowledge of driving. This will cause their insurance prices to be higher than those of someone with vast knowledge of driving.
The amount of insurance policy you choose. The higher the range, the greater the amount the insurance provider will pay in terms of claims. People on extensive insurance policies should expect to pay more for insurance.
Why Are Electric Vehicles So Expensive To Insure In Australia?
Electric vehicles in Australia are so expensive to insure because they are pricey. They are so expensive that you can sometimes get tax breaks in Australia.
For instance, you can get tax waivers when it comes to taxes paid for an extravagant car. Again, electric cars’ operational and upkeep costs are very expensive.
All these characteristics will make an electric car so expensive to insure in Australia. Insurance providers will evaluate all these factors in their insurance price calculations.
What Makes Electric Vehicle Insurance Expensive
Various elements come together to make electric vehicle insurance expensive. Insurance for electric vehicles is expensive because of;
Rising taste in electric vehicles. Electric car sales in December 2023 were more than 98,000, which is an over 160% increase in electric vehicle sales in December 2022.
The high cost of purchasing and importing electric vehicles and their body parts makes electric vehicles expensive, according to the Insurance Council of Australia.
According to the spokesperson for Suncorp Group, insurance for electric vehicles is expensive because they cost a lot to purchase.
If your electric vehicle is new, it can make you pay a high price for its insurance. A new electric vehicle means high value, hence the high insurance cost.