{"id":110118,"date":"2026-04-06T09:29:00","date_gmt":"2026-04-05T23:29:00","guid":{"rendered":"https:\/\/en.econostrum.info\/au\/?p=110118"},"modified":"2026-04-05T19:31:07","modified_gmt":"2026-04-05T09:31:07","slug":"electric-insurance","status":"publish","type":"post","link":"https:\/\/en.econostrum.info\/au\/electric-insurance\/","title":{"rendered":"Aussies Are Going Electric, But Is the Insurance Price Tag Worth It?"},"content":{"rendered":"\n<p>With petrol prices soaring and the global economy in turmoil, more Aussie drivers are switching to electric vehicles (EVs) than ever before. But while EVs may seem like the future of motoring, they come with their own set of hidden costs\u2014one of which is the rising price of insurance. The shift to electric cars might save on fuel, but drivers are now feeling the sting in their wallets when it comes to insuring their new rides.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">A Surge in EV Sales Amid Fuel Woes<\/h2>\n\n\n\n<p>Thanks to the ongoing Middle East conflict, petrol prices have skyrocketed, leaving many Australians feeling the financial pinch. In response, a significant number of drivers are making the switch to <a href=\"https:\/\/en.econostrum.info\/au\/electric-vehicles-for-every-budget\/\" target=\"_blank\" rel=\"noopener\">electric vehicles<\/a>. Data from CommBank reveals that new EV car loans shot up by 161% in March 2026, compared to the previous month. Even business loans for electric vehicles, particularly Teslas, saw a staggering 268% increase. People are flocking to brands like BYD, which now offer fully electric cars for under $30,000, making EVs more accessible than ever.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Electric vehicle interest is surging across Australia, as fuel prices climb and global tensions bite at the bowser.<br><br>Click the link to find out the newest models on the market: <a href=\"https:\/\/t.co\/MI05rPOj3r\">https:\/\/t.co\/MI05rPOj3r<\/a> <a href=\"https:\/\/t.co\/PMWO4eSj4g\">pic.twitter.com\/PMWO4eSj4g<\/a><\/p>&mdash; 10 News (@10NewsAU) <a href=\"https:\/\/twitter.com\/10NewsAU\/status\/2039616175836148056?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener\">April 2, 2026<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">Rising Insurance Premiums: The Unseen Cost<\/h2>\n\n\n\n<p>But there\u2019s a catch. Despite the increase in sales, new data from Compare the Market has shown that insuring an EV is becoming more expensive. The comprehensive insurance quotes for electric cars have risen by an average of 10.2% between 2025 and 2026. This means that, on average, it will cost Aussies around $2300 a year to insure an EV, with hybrid vehicles costing about $1700, reports<a href=\"https:\/\/www.drive.com.au\/caradvice\/the-ev-insurance-sting-facing-aussie-drivers-fleeing-the-fuel-crisis\/\" target=\"_blank\" rel=\"noopener\"> Drive.<\/a><\/p>\n\n\n\n<p>The rise in premiums isn\u2019t just limited to the highest-end models. Take the Tesla Model Y RWD, for example, which saw an increase of $164 in its insurance premium from March 2025 to March 2026. Similarly, the Tesla Model 3 saw a 3% hike in its premium over the same period. These increases are worrying, especially for new buyers who may have expected the transition to electric motoring to be more cost-effective in the long run.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Why Are EV Insurance Costs Going Up?<\/h2>\n\n\n\n<p>So, what\u2019s behind this rise in insurance premiums? The biggest factor is the rising cost of labor and spare parts, particularly for EVs. With specialized training needed for repairs and the high cost of replacing electric car batteries, insurers are passing on these expenses to consumers. According to Eric Koch, Economic Director at Compare the Market, these factors are driving premiums up across the board, with EV owners feeling the brunt of the increase.<\/p>\n\n\n\n<p>Interestingly, not all EVs are seeing the same increases. Some models, like the Tesla Model 3, have seen lower premiums, thanks to brand-specific insurance products, such as Tesla\u2019s &#8220;InsureMyTesla.&#8221; This has resulted in lower premiums for Tesla owners in Australia, with some seeing a decrease in their insurance costs over the past year.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">The Hybrid Dilemma<\/h2>\n\n\n\n<p>While EVs are certainly making waves, hybrid vehicles are also experiencing their own rise in insurance costs. For example, the BYD Sealion 6, a popular hybrid model, saw its insurance premium jump by 18% from March 2025 to March 2026. Similarly, the Toyota RAV4, which was the second-best selling car in 2025, experienced a 9% increase in its quoted premium.<\/p>\n\n\n\n<p>But not all hybrid models are seeing the same fate. For instance, the Toyota Corolla and Camry saw small decreases in their insurance premiums\u20145% and 2%, respectively. This suggests that the rise in insurance costs isn\u2019t uniform across all types of vehicles, with some models being hit harder than others.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>As Aussie drivers flock to electric cars to escape rising petrol prices, they\u2019re facing an unexpected challenge\u2014higher insurance premiums. Here&#8217;s why.<\/p>\n","protected":false},"author":14,"featured_media":110119,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[44],"tags":[],"class_list":["post-110118","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33","no-featured-image-padding"],"_links":{"self":[{"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/posts\/110118","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/users\/14"}],"replies":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/comments?post=110118"}],"version-history":[{"count":1,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/posts\/110118\/revisions"}],"predecessor-version":[{"id":110120,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/posts\/110118\/revisions\/110120"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/media\/110119"}],"wp:attachment":[{"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/media?parent=110118"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/categories?post=110118"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/tags?post=110118"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}