EV and hybrid car insurance: What it costs and what to check
Electric cars usually cost more to insure. In Compare the Market's March 2026 survey, comprehensive cover for ten popular electric cars averaged $2,306 a year, against $1,709 for ten hybrids and plug-ins, quoted for the same driver. But the car matters more than whether it's electric: an MG4 was about $1,500 and a Tesla Model 3 about $3,400. Your price depends on you, your postcode and the insurer, so always get several quotes.
What popular EVs cost to insure
| Car | March 2025 | March 2026 | Change |
|---|---|---|---|
| Tesla Model 3 RWD | $3,257 | $3,356 | +3% |
| Tesla Model Y RWD | $3,039 | $3,203 | +5% |
| BMW iX1 eDrive20 | $2,777 | $3,152 | +14% |
| Zeekr X RWD | $1,831 | $2,271 | +24% |
| Xpeng G6 Standard Range | $1,610 | $2,135 | +33% |
| Toyota bZ4X 2WD | $1,601 | $2,122 | +33% |
| Kia EV5 Standard Range | $1,781 | $1,921 | +8% |
| BYD Sealion 7 Premium | $1,786 | $1,795 | +1% |
| BYD Dolphin Essential | $1,437 | $1,578 | +10% |
| MG4 Excite 51 | $1,592 | $1,524 | −4% |
| Average | $2,071 | $2,306 | +11% |
Electric car premiums rose about 10% in the year to March 2026, while hybrid premiums rose about 7%. The Xpeng G6 and Toyota bZ4X jumped the most, from about $1,600 to about $2,100, while the MG4 got slightly cheaper.
Hybrids and plug-in hybrids
Average quoted comprehensive premiums from 11 insurers (six underwriters), for one example driver: a 34-year-old man in Alderley, Brisbane, with a $900 excess and 15,000 km a year, for a 5 March 2026 start. Your quotes will be different. Source: Compare the Market EV insurance index, April 2026.
| Car | March 2025 | March 2026 | Change |
|---|---|---|---|
| BYD Shark 6 Premium (plug-in) | $2,059 | $2,172 | +5% |
| Toyota RAV4 GX 2WD hybrid | $1,678 | $1,844 | +10% |
| BYD Sealion 6 Essential (plug-in) | $1,482 | $1,821 | +23% |
| GWM Haval H6 Lux Hybrid | $1,594 | $1,727 | +8% |
| Toyota Camry Ascent hybrid | $1,737 | $1,698 | −2% |
| MG ZS Excite Hybrid+ | $1,558 | $1,680 | +8% |
| Hyundai Tucson Hybrid | $1,493 | $1,627 | +9% |
| Toyota Corolla Cross GX hybrid | $1,424 | $1,580 | +11% |
| Hyundai Kona Hybrid | $1,417 | $1,498 | +6% |
| Toyota Corolla Ascent Sport hybrid | $1,524 | $1,448 | −5% |
| Average | $1,597 | $1,709 | +7% |
Hybrids generally insure much like their petrol versions, because they use mostly conventional parts and a small battery. Plug-ins sit in between.
Why EVs often cost more to insure
- Repairs need special parts, tools and training. The Insurance Council of Australia says EV repairs need specialised parts, diagnostic equipment and trained technicians, and few repair shops can do them yet.
- The battery is expensive. Damage to the battery pack or its sensors can be very costly to fix, and a damaged pack can mean the whole car is written off.
- Repair costs are rising for every car. Across all motor insurance, repair costs are up about 26% since 2022 and make up around 60% of claims costs.
- Higher car values. Many EVs still cost more to buy than a similar petrol car, so they cost more to replace.
- Insurers are still learning. With less claims history, quotes for EVs vary more. One actuarial analysis found the cheapest and dearest quotes for a BYD Atto 3 were about $900 apart, against about $500 for a Mazda CX-30.
The gap isn't the same everywhere: the same analysis found EV premiums ranged from no more than a comparable petrol car to about 39% more, depending on the insurer and the car.
What to check in an EV policy
From each insurer's website in October 2026, comprehensive cover only. Limits, exclusions and conditions apply, and policies change: always read the Product Disclosure Statement (PDS). Sources: NRMA, RACV, Allianz, Zurich. We have no commercial relationship with these insurers.
| Insurer | Charging cable | Home wall charger | Battery |
|---|---|---|---|
| NRMA | Portable charging cord covered as an accessory under Comprehensive. | Not covered by car insurance. | Not mentioned separately; electrical fire damage covered where the policy includes fire. |
| RACV (Victoria) | Portable cables and adaptors that came with the car, under Comprehensive and Complete Care. | Excluded (permanently attached home charging stations). | Damage from an insured event, including fire such as thermal runaway. |
| Allianz | Covered if you own it. | Covered if you own it, including mounts. | Accidental damage covered; breakdown isn't. Thermal runaway covered under fire if charging and use followed the maker's specifications. |
| Zurich InsureMyTesla | Tesla charging cables and adaptors (Model 3 and Model Y only). | Not mentioned. | Not mentioned. |
- Battery: is accidental damage to the high-voltage battery covered, and is a battery fire (thermal runaway) covered? Breakdown and normal wear usually aren't.
- Charging cable: most comprehensive policies cover the portable cable as an accessory.
- Home wall charger: some car policies cover it, others exclude it. If yours doesn't, ask your home insurer whether it's covered as part of the building.
- Repairer and hire car: ask whether they use EV-trained repairers near you, and how many hire-car days you get. EV repairs can take longer.
- New car replacement: how many years after you buy it, if it's written off.
- Roadside assistance: often a separate product. Check it covers running out of charge and towing an EV properly.
How to pay less
This guide is general information only, not financial or insurance advice. It doesn't consider your circumstances. Read the PDS and Target Market Determination before buying a policy.
- Get several quotes, with the same excess and cover, from a comparison site and directly from insurers. EV quotes vary more than petrol ones.
- Quote before you buy the car. Two similar EVs can be $1,000 or more a year apart to insure, which can wipe out a lower sticker price.
- Choose your excess. A higher excess lowers the premium, but make sure you could pay it.
- Park off the street if you can, and give accurate kilometres: both affect the price.
- Compare again at renewal. Premiums often rise each year; loyalty rarely pays.
Insurance isn't included in our running-cost figures, because it depends so much on the driver. Add your own quotes when you compare cars.
Sources
- Compare the Market: EV insurance up 10% in 12 months (April 2026)
- iTWire: EV insurance prices up 10% in 12 months (April 2026)
- Insurance Business: Australia's EV insurance challenge (October 2026), citing the Insurance Council of Australia and Taylor Fry
- Mozo: electric vehicle car insurance explained (July 2026)
More: checklist, calculators, questions and more guides
Car insurance checklist for EVs and hybrids
Get comparable quotes, check what's covered for the battery and charging gear, and the questions to ask before you pay. 2 A4 pages.
Calculators for this
Common questions
Is it more expensive to insure an electric car in Australia?
Usually. Compare the Market's March 2026 survey found ten popular EVs averaged $2,306 a year for comprehensive cover, against $1,709 for ten hybrids and plug-ins, for the same driver. It varies a lot by model and insurer.
What is the cheapest EV to insure?
In Compare the Market's March 2026 survey, the MG4 Excite 51 was the cheapest of the ten EVs at about $1,524 a year, and the Tesla Model 3 the dearest at about $3,356. Your quote will differ.
Does car insurance cover my EV's battery?
Comprehensive policies usually cover accidental damage to the battery, and many cover battery fires. Breakdown and normal wear usually aren't covered. Check the PDS.
Is my home EV charger covered by car insurance?
It depends on the insurer. Allianz says it covers wall chargers you own; NRMA and RACV say their car insurance doesn't cover fixed home chargers. Ask your home insurer if it isn't covered.
Are hybrids cheaper to insure than EVs?
Generally, yes. The same survey found ten hybrids and plug-ins averaged $1,709 a year, about $597 less than the EV average.
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How we work it out, and our sources
Weekly cost = the car's energy use × 250 km × your electricity or fuel price, with 90% of charging at home. Prices are list prices at November 2026; check with the dealer.
- Electricity: 2026–27 default rates (AER, Victorian Default Offer, state retailers). Public charging: Sydney network prices, July 2026.
- Petrol and diesel: capital-city daily averages from state government price feeds, via FuelRadar, 12 November 2026. Diesel for Hobart, Canberra and Darwin is estimated from the national fall.
- Cars: maker figures via CarExpert, Drive, CarsGuide and EV Central. Plug-in electric range is taken as 80% of the claim.
- Servicing: published capped prices; marked as an estimate where not yet published (CarExpert comparison).
- Tyres: an EV set lasts about 35,000 km, a petrol or hybrid set 50,000 km (RACV); prices from Gridly.
- Home charger: about $2,000 installed ($1,000–$3,000). Novated leases: PwC summary.
Printed from EV Pick Australia · evpick.com.au. Prices and costs are estimates; check with the dealer. © 2026 EV Pick (T. Crouch). For personal use only; not to be copied, republished or sold without permission.
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✓ You now know
- EVs usually cost more to insure than hybrids
- The car matters more than whether it's electric
- Your price depends on you, your postcode and the insurer, so get several quotes
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