Looking to buy an Electric Vehicles – consider Insurance and Repairs

Looking to buy an Electric Vehicles – consider Insurance and Repairs

As electric vehicles and hybrids become increasing popular, with reduced fuel costs and the latest technology, key considerations when purchasing the vehicle should include the availability and cost of car insurance and issues with repairs following an accident. 


Insurance cover for cars and trucks is the same as existing petrol or diesel vehicles.

Motor vehicle insurance has two main options:

  • Comprehensive cover, which covers damage to your own vehicle, as well as damage to other people’s cars or property, or 
  • Third party property damage (TPPD), which only covers the cost to repair or replace other people’s property. 

It should be remembered that Compulsory Third Party (CTP) Insurance is different as it only covers personal injury of people and passengers and is part of your registration renewal. 

Premiums are set based on the type of vehicle, usual cost of parts and time taken to repair, as well as driver age and accident history. 

Cost & availability of Insurance

Generally, the cost of insurance for electric vehicles is higher, up to 20% more than standard petrol or diesel cars. 

Drive Magazine found in a recent report that ‘After electricity costs, comprehensive insurance is the second-biggest ongoing expense for Australian EV owners, according to Drive's 2023 Ownership Costs survey. They're also more costly to insure than traditional cars, by an average of $661 per year’.

This is largely due to the cost of imported parts and labour costs. Some insurers have also taken the decision to not offer cover for EV’s or hybrid EV’s, so there is likely to be less competition and less choice of insurers. 

So, it’s important to shop around or ask your insurance adviser to find the best deal. 

As EV’s or Hybrid EV’s become more popular, more insurers will offer cover and the competition is likely to drive insurance premiums down. 

Accident repairs

Electric vehicles incorporate advanced technology, and in the event of an accident, these components can be more expensive to replace or repair. Local repairers may not have the parts in stock, so there may be delays in getting parts and the vehicle back on the road. There are also currently only a limited number of specialist mechanics qualified to work on electric vehicles, requiring the vehicle to be transported to a specialised service centre, both which can drive-up repair costs and cause extended delays.

So, it’s important that you talk to the dealer and see what support they provide following an accident.  Having a damaged car sitting in a service centre for weeks, waiting on parts should be considered. Some insurers do offer hire of a replacement vehicle following an at fault accident, however this is usually limited to 2 – 3 hire costs.

General Advice Warning

This communication including any weblinks or attachments is for information purposes only. It is not a recommendation or opinion, your personal or individual objectives, financial situation or needs have not been taken into account. This communication is not intended to be a constitute personal advice. We strongly recommend that you consider the suitability of this information, in respect of your own personal objectives, financial situation and needs before acting on it. This document is also not a Product Disclosure Statement (PDS) or a policy wording, nor is it a summary of a particular product’s features or terms of any insurance product. If you are interested in discussing this information or acquiring an insurance product, you should contact your insurance adviser to obtain and carefully consider any relevant PDS or policy wording before deciding whether to purchase any insurance product.

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