EV Insurance Recommendations

OziShopper on 23/06/2025 - 15:56

Hi Guys,

I’ve recently purchased my first EV via Novated Lease and just got insurance quotes from RACV (VIC) and QBE. The premiums seem significantly higher than what I used to pay for a regular ICE vehicle. Is this normal?

Both quotes are in the range of $2.5k to $3k with a $1k excess.

I’m happy to pay that if it’s standard for EVs, but I’m wondering — am I missing out on any insurance companies that specialise in EVs or offer better value?

Would love to hear your experiences and any recommendations as EV owners. Thanks in advance!

Automotive Car Insurance Insurance Electric Vehicle

Comments

  • rambutann on 23/06/2025 - 16:01
    +2

    It's rough, but at least its on a novated lease, you only pay that amount minus 10% minus your tax bracket %.

    I have had luck with Commbank car insurance and Budget Direct..
    Tends to be around $1,800 in metro Melbourne.

    • changyang1230 on 23/06/2025 - 17:44
      +3

      Very important point.

      Also if you are unfortunate enough to have to claim, the excess can be funded with pretax money so effectively discounted by the GST (technically 9.09% of the final price) and your tax bracket (+2% Medicare levy).

      Therefore if you are on a top tax bracket, for example, the insurance policy of 1500 premium and 2000 excess are really:

      Premium post tax equivalent = 1500/1.1 x .53=722.73
      Excess post tax equivalent = 2000/1.1 x .53=963.64.

  • GordonD on 23/06/2025 - 16:20

    Drive has run a couple of articles stating that EVs cost a lot more to insure than similar ICEs.

    But when you look at the figures they quote, it is Teslas that cost a LOT more, like close to double. And all the other brand EVs are only a small amount more, like 10-15% more.

    If Drive's figures accurately represent the situation, its not EVs that a lot more expensive to insure so much as Teslas specifically. The explanation I have heard for that is that not so much that EVs are fundamentally expensive to fix, but that Teslas' performance encourages spirited driving, which results in higher severity crashes, and when they are repaired there are complex electronic sensors scattered around the car that get damaged and require replacing, and all have to be made to work together properly again.

    • changyang1230 on 23/06/2025 - 18:50
      +1

      I don't really buy the "performance" argument for the "Tesla premium".

      The other version I have read is: Tesla's gigacasting means that it's harder to repair partial damage to the car, which means it's a lot easier for the car to be written off in any accident. Besides, their batteries are also a lot more prone to being written off in any accident (not sure why), which adds to that.

      I am more convinced by this reason than "they are fast" - plenty of other EV brands have similar 0-100 performance, and even for the same performance you still have a higher insurance premium for the Tesla brand.

      • GordonD on 23/06/2025 - 18:53

        Its hard to tell which scenario is true, because all you see in the numbers is more expensive repair jobs. You can't tell if that's because the impact was more severe, or the fundamental cost of repairing one is higher for the same severity impact.

  • brendanm on 23/06/2025 - 16:26
    +5

    I thought this was the sort of stuff you look into prior to purchasing the car. Are you currently driving it with no insurance?

    • OziShopper on 23/06/2025 - 17:59

      Like a true Ozb, only secured a deal with the refundable deposit before EoFY, and doing all the DD now before picking up the vehicle.

  • eciuj on 23/06/2025 - 16:34
    +3

    Just get as many quotes as you can, and pick the best of the bunch. Allianz was the cheapest for me 2 years ago (2023 Model Y RWD on Novated Lease). This year NRMA is the cheapest. One thing to keep in mind is what happens if your car gets written off. The insurer might only pay the market or agreed value, which would be lower than the amount you owe to the finance company. Allianz has a replacement car policy for cars less than 2 years old. NRMA has 3 years on their premium plus (?) policy, which is what I'll choose. I believe if your car gets replaced via insurance your finance provider will swap the lease over to the new car (keep in mind they still 'own' the car). YMMV, DYOR.

  • MS Paint on 23/06/2025 - 16:37
    +2

    what I used to pay for a regular ICE vehicle.

    Did you do any bit of research before purchase? FFS.

    • OziShopper on 23/06/2025 - 18:00

      Yes, I know the higher insurance, but as per my post keen to look at if there are any better options out there just in case.

  • justdigi on 23/06/2025 - 16:39
    +5

    My EV insurance cost less than my ICE car, so no, that doesn’t seem like the norm to me. But it’s hard to tell when you haven’t said what EV it is, what your no claims discount is, what your age is and where you live. All of those things make a difference for insurance.

    • reactor-au on 24/06/2025 - 07:52
      +1

      You also haven't said whether you switched from a V8 Comodore to a MG EV.

    • pegaxs on 23/06/2025 - 22:42
      +2

      Oh, trust me, everyone on this website is very aware of the reason why we think you “scream out” this tripe… It’s not really a well kept secret or anything.

      • rumblytangara on 23/06/2025 - 22:45
        +1

        I've only recently noticed this sywhatever account spouting crap. Is it a renamed account?

      • brendanm on 23/06/2025 - 22:54
        +2

        Brain damage?

  • jv on 23/06/2025 - 17:04
    -4

    I’ve recently purchased my first EV via Novated Lease and just got insurance quotes from RACV (VIC) and QBE.

    Didn't you do your homework before purchasing?

    You also need to factor in Labor's new EV Tax…

  • JimmyF on 23/06/2025 - 17:06
    -1

    Both quotes are in the range of $2.5k to $3k with a $1k excess.

    Its on point with roughly what a ICE of equal value is worth.

    Our 12yo banger car is $1500 for full comp!! But not worth not having it, as I've got no time to chase dead beats for money.

    • jv on 23/06/2025 - 17:20
      -1

      Our 12yo banger car is $1500 for full comp!!

      You're getting ripped off… I'm paying about 1/3 of that…

      • Ade99 on 24/06/2025 - 07:52
        +2

        Yep…$500 fully comp should be where you are for a 12 year old iCE vehicle.

    • jv on 23/06/2025 - 17:21
      -4

      Its on point with roughly what a ICE of equal value is worth.

      In general, ICE cars are cheaper to repair, therefore the insurance is cheaper.

    • Brick Tamland on 23/06/2025 - 18:41

      Making a few assumptions there. Insurance varies per person, per location, per car

      • JimmyF on 23/06/2025 - 18:48

        Making a few assumptions there. Insurance varies per person, per location, per car

        Nope, I own a EV as well. Our 12yo ICE is half the price of our EV. Yet the EV is worth 5 times the value on 'paper'.

        • Brick Tamland on 23/06/2025 - 19:37
          +1

          My $40k 2023 ICE is $700 P/A with a $600 excess. Why does your 12 year old banger cost near on triple mine?

          • JimmyF on 23/06/2025 - 19:46
            +2

            @Brick Tamland: Depends on where you live, are you in the city or country?

            I've done all the 'quotes' it is what is. See the comment below, they have the same experience as me.

            • rumblytangara on 24/06/2025 - 09:15
              +1

              @JimmyF: Same here. 12 year old car worth bugger all, comprehensive insurance is around 1.3K.

    • Iwantthebestprice on 23/06/2025 - 19:42

      Same here, my old 2012 commodore was $1200 per year for full comp, this was cheapest of 5 quotes. Market value $6000. Only had it incase an accident I didn’t want to stuff around without insurance.

      Got a new Tesla model Y juniper, insurance cost $2000 per year and market value of $60,000.

      It pays to shop around for EV’s

      • JimmyF on 23/06/2025 - 19:49

        You are basically me… But our banger is valued around $12k market value. YAY Toyota.

        Our MY is valued around $55-60k, so about 5x the value of the banger, but only costs a extra $800/year. Go figure.

        Like you, I don't want the hassle of dealing with someone else for a not at fault claim and with the car still valued over $10k, its not worth the risk to just write it off. I really should just sell it.

      • reactor-au on 26/07/2025 - 08:33

        Would seem for comprehensive they want at least $1000.

        No claims last 10 years.
        My 2018 is worth about 20k, can't find anything less than $1300/yr, which is about what it's been for the last 4 years by phoning around every year.

  • Brick Tamland on 23/06/2025 - 18:38
    -1

    EV insurance is about the same as ICE.

    However, Tesla insurance is very expensive because of the computers.

    • JimmyF on 23/06/2025 - 18:49
      +3

      The ComPuTErS….. Yeah no.

    • klaw81 on 24/06/2025 - 16:03
      +3

      Overly broad statements about insurance pricing are inevitably going to be inaccurate.

      The annual insurance premium on my 2022 Tesla is only about $300 more than my old 2015 Mondeo turbo diesel for a vehicle with 3x the agreed value, same excess and same drivers….and that's with a recent insurance claim.

      From discussions I've seen on other forums, it seems that some insurance companies consider the risks associated with EVs (or perhaps just Tesla) are much higher than other companies, and their pricing reflects this. Some of the quotes I got were well over double the lowest price I found, so shopping around is key.

      Also "because of the computers?" What kind of nonsense is that?

      • Brick Tamland on 24/06/2025 - 16:24

        I was just trying to have some fun. Tough crowd.

  • donga100 on 23/06/2025 - 18:39

    I insured mine with Suncorp. Price was about 20% more than my previous ICE car but the insured value is also tripled so seems decent value I guess.

  • yoyo6 on 23/06/2025 - 19:13
    +1

    The cheapest for me for a Byd atto was Australia Post and they offer three years new for old replacement which I think is important. I think the insurers are charging more because they believe they can get away with it

  • kallico on 24/06/2025 - 07:44

    Everyday insurance

  • drewbytes on 24/06/2025 - 07:52
    +1

    Shop around, try everyone. My Tesla (22 3LR) with NRMA I can get under under $1k comprehensive, but I opted for top cover, unlimited hire car, high agreed value etc. for $1450 pa. Some quotes were double or more that price.

    • Ade99 on 24/06/2025 - 07:55
      +2

      With such a spread of quotes you can quickly tell if the company wants the business or not….🤔

  • Naigrabzo on 24/06/2025 - 09:24

    You need set aside an hour or two to research and maybe even call around.

    What EV is it? For example a Lotus Eletre would be expensive to insure and probably parts etc for repair will be hard to come by.

  • pauldegab on 24/06/2025 - 09:43
    +1

    I bought a BYD Atto 3 and the premium through the lease company was over $2000. I went through Bingle and they were half that price. I've claimed once through Bingle (over 10 years ago) and had no issues when dealing with them.

  • dan2k on 24/06/2025 - 11:09

    When I bought a PHEV on novation I got a few quotes and they weren't that much expensive than my other ICE car which is 7 y.o. and less than ¼ the value.

    I also found RACV complete care include new for old replacement for 3 years, same as NRMA premium. This makes me more comfortable with the reducing balance of the insurance coverage. As the finance owing is not related to the value of the car.

    Oh and the Lease Co's "fleet" insurance was twice the price of RACV.

  • Never Pay RRP on 24/06/2025 - 11:42
    +1

    As per previous commenters you need to shop around and get more quotes.
    My initial quotes (BYD atto3) were around $1500, but I eventually found Youi for around $900.
    I don’t think there is a one size fits all answer, your situation and quotes will be different.
    Good luck!

  • jemusah on 24/06/2025 - 22:46

    Shop around a few more, at least for the different underwriters - you can generally tell which providers have the same underwriter based on the quote application you go through. If the layout is very similar - chances it's the same provider ie Budget Direct, Qantas, Virgin Money, Coles are all the same underwriter. They will all provide similar ballpark prices so once you've done one you'll know roughly what the rest of them are.

  • RichardRides on 24/06/2025 - 22:55

    Bingle
    $1176 for comprehensive on a $64k EV Mini.
    Market value. $995 excess. Parked off-street.
    Also novated fwiw.

  • wolomolo on 25/07/2025 - 15:03

    Choice recommends either APIA and NRMA for comprehensive however its not just for EV

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