You did the maths on fuel and servicing, switched to an EV to save money, and then the renewal notice landed. Here’s the catch nobody flags at the dealership: the average EV insurance cost in Australia is running well ahead of the petrol car you traded in. CHOICE’s January 2026 data puts the average comprehensive premium for an electric car at $2,545 a year, versus $1,702 for a petrol car, about 40%, or $843, more. That’s real money, and it eats into your running-cost win. So let’s do what the comparison sites won’t: explain why the number is higher, which bits you can actually control, and how to pay less.
The number: how much more you’re really paying
CHOICE’s figures aren’t a vibe. They come from a market-representative sample of more than 16,000 comprehensive quotes for EVs and over 36,000 for petrol cars, collected in January 2026. The headline gap is $843 a year.
But the brand you buy swings that hard. In the same CHOICE data, Geely was the cheapest EV brand to insure at an average $1,622, while Tesla was the most expensive at $2,985. That’s a $1,363 spread before you’ve compared a single insurer. And the trend isn’t your friend: Compare the Market found EV premiums climbed 10.2% on average in the 12 months to 2026, versus 6.6% for hybrids.
Why EVs cost more to insure
Insurers aren’t punishing you for going green. They price risk, and an EV genuinely costs them more to fix or replace after a prang. Three things are doing the heavy lifting:
- The battery is the car. The pack can be around half the vehicle’s total value, and it often can’t be repaired, only replaced. So a knock that would be a bolt-on panel job on a petrol car can total an EV, because the replacement cost rivals what the car is worth. More write-offs means bigger payouts, which means higher premiums.
- Parts come from overseas. CHOICE points out the parts network in Australia isn’t as established for EVs, so components are more likely to be imported, slower and dearer.
- The panel-beater shortage is real. There simply aren’t enough certified EV repairers yet. Compare the Market flags specialised training and fewer qualified smash repairers as a key premium driver. Less competition, higher labour rates.
None of that is spin. It’s why the gap exists, and why it’ll narrow as the repair network catches up, but not this year.
What you can actually control
Here’s the part the buyer side can influence. Some of these levers you pull before you buy, some at renewal.
1. Pick the model with insurance in mind. That $1,363 brand spread in the CHOICE data is a buying decision, not a renewal one. If you’re cross-shopping a used Tesla against a cheaper EV, factor the premium into your total cost, not just the sticker price. (See our guide to used EV prices in 2026 and the best used EVs under $30,000 for where the value sits.)
2. Shop around, aggressively. This is the single biggest saver. Compare the Market’s EV index found the gap between the cheapest and priciest insurer for the same car was $3,100 on a Tesla Model 3 and $836 on an MG 4: same vehicle, same cover, wildly different price. Get at least three quotes every single renewal. Loyalty is a tax.
3. Lift your excess (if you can wear it). A higher voluntary excess drops your premium. Just make sure the excess is money you could actually front if you claimed tomorrow.
4. Choose agreed value, not market value, but know the trade-off. Agreed value locks in a payout figure, which matters for a high-value EV that could be written off over battery damage. It sometimes costs a little more upfront; decide based on how much the car is worth to you, not the cheapest headline.
5. Watch the battery excess. Some insurers bolt on a separate battery excess. Read the Product Disclosure Statement before you sign: a cheap premium with a $2,000 battery excess isn’t cheap if the battery’s what gets hit.
Don’t get double-charged on your charger
One trap specific to EVs: your home charger. Portable cables that come with the car are usually covered under comprehensive. RACV, for instance, includes the cables and adaptors supplied with your vehicle. But a fixed wall charger bolted to your garage is a different story. As Finder notes, fixed wall chargers aren’t always covered by car insurance, and you may need home and contents to protect a permanently installed unit. Check both policies so you’re not paying to insure something twice, or worse, not at all.
The two numbers that should change what you do
The insurance penalty is real and it’s not imaginary bias: you’re paying roughly $843 a year more on average because EVs write off more easily and cost more to repair. But the two numbers that should change your behaviour are the $1,363 brand spread and the up-to-$3,100 gap between insurers on the same car. Translation: the model you choose and the quotes you compare matter far more than the fact it’s electric.
So do this. Before you buy, price the insurance the way you’d price the car: a cheaper EV to insure can beat a dearer one on total cost. At every renewal, get three quotes, never auto-roll, set your excess as high as you can genuinely afford, and read the PDS for a sneaky battery excess. Do that and you’ll claw back most of the gap. Ignore it and you’ll hand back a chunk of the fuel savings you switched for in the first place.
Frequently asked questions
How much more does it cost to insure an EV in Australia?
Based on CHOICE’s January 2026 data, the average comprehensive EV premium is $2,545 versus $1,702 for a petrol car, about 40%, or $843 a year, more. Your actual figure depends heavily on the brand and which insurer you use.
Why are EVs written off so easily?
The battery pack can be around half the car’s value and frequently can’t be repaired, only replaced. When replacement cost approaches the car’s market value, the insurer writes it off rather than fixing it, even after a relatively minor knock. Before buying used, it’s worth checking the pack’s condition; our EV battery health check guide walks you through it.
Is my home wall charger covered by car insurance?
Portable cables supplied with the car usually are, but a fixed, hard-wired wall charger often isn’t. Finder notes you may need home and contents cover for a permanently installed unit. Confirm which policy covers it before you assume you’re protected.
Does a used EV cost more to insure than a new one?
Not automatically: agreed value falls as the car ages, which can lower premiums, but repair economics still apply. Shop it the same way: compare three insurers and factor the premium into the total cost. Our used Tesla Model 3 buyer’s guide covers the model that tends to sit at the pricier end of the insurance table.
