HomeCar InsuranceTeslas help inflate average EV insurance premium well above hybrids, PHEVs

Teslas help inflate average EV insurance premium well above hybrids, PHEVs


New research has found the average quoted comprehensive insurance premium for electric vehicles (EVs) in Australia is significantly higher than for hybrid (HEV) and plug-in hybrid (PHEV) vehicles, though some EVs are significantly more expensive to insure than others.

Insurance comparison website Compare the Market quoted comprehensive car insurance policies for 20 popular and “notable” hybrid, PHEV and EV models across 11 well-known insurance brands and six underwriters.

No petrol or diesel vehicles were included in this study.

Insurance premiums for Tesla Model Y RWD and Model 3 RWD vehicles decreased by six per cent on average compared to quotes for identical policies in October 2024.

Compare the Market nevertheless found these two models cost more than $3000 on average to insure annually, helping to drive up the overall average EV insurance premium to $2134.26.

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That’s several hundred dollars more than the combined hybrid/PHEV average of $1649.93, even though Compare the Market found premiums for popular hybrids like the Toyota RAV4 GX and Corolla Ascent Sport had increased by around two per cent on average.

The company notes a range of factors influence car insurance premiums, including the rising cost of parts and labour, which the Insurance Council of Australia says account for around 60 per cent of claims expenses.

Some EVs undercut comparable hybrids and PHEVs in average premium cost.

The BYD Dolphin Essential, for example, had an average premium of $1425.13, while a similarly sized Toyota Corolla Ascent Sport Hybrid cost $1587.40 to insure.