EV sales in Australia have hit a milestone, with over 50,000 sold in the first half of the year. EVs accounted for about one in 12 cars sold, according to DRIVE.com. But insuring an EV comes with unique challenges, and it’s important to be aware of them.

Charging Challenges and Range Anxiety

Unlike traditional cars, EVs require specific charging stations, which are still scarce in regional areas. This can lead to “range anxiety” — the fear of running out of battery. While most EVs warn drivers when power is low, the lack of standardised infrastructure can impact insurance premiums, especially if you frequently drive in less developed areas. EV charging infrastructure in Australia is yet to be fully standardised, but there’s a national collaboration to get this sorted.

Unique Features and Repairs

EVs often come with advanced features, like driver assistance systems, which can lower the chance of accidents but be costly to repair if damaged. Insurance premiums may reflect the high cost of these repairs, so understanding your EV’s specific features is crucial.

Market Value and Coverage

EV values can fluctuate due to rapid advancements in technology. Regularly updating your policy to reflect the current market value ensures you have adequate coverage in case of total loss.

Higher Premiums for EVs

Currently, EV insurance premiums are about 20% higher than traditional vehicles due to factors like battery replacement costs and specialised repairs. However, as the market matures, insurance options should become more tailored to EV owners’ needs.

Other Factors Affecting Premiums

Where your EV’s charging port is located can affect repair costs. For example, front charging ports are more prone to damage in collisions, potentially leading to higher premiums.

The Growing EV Market

The availability of EVs is increasing, but the Electric Vehicle Council argues that a New Vehicle Efficiency Standard could stabilise the market and reduce insurance costs over time.

As your broker, we’re here to help customise your EV insurance to cover accidental damage, theft, storms, and more. Let’s chat to ensure you have peace of mind on the road with your EV.

If you want to know more about the key risks involved in owning an EV then CLICK HERE, or contact us for more information.