EV insurance

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9+

Excellent

These products offer the best value and outcomes considering various product features and price.

7+

Great

Competitive products within their group.

5+

Standard

But these products still offer reasonable value and have the basics sorted.

0+

Basic

Offering basic cover with limited features or higher pricing.

Electric cars are becoming a common sight on Australian roads. Recent figures from the Federal Chamber of Automotive Industries found EV sales rose 88.9% in March 2026 to 15,839 units, reaching a record 14.6% share of the 105,058-vehicle Australian market.

But as more Aussies decide to go electric with their wheels, so do the number of EV insurance policies.

Electric car insurance in Australia covers the unique risks that come with owning an electric vehicle (EV), from high-value batteries to specialised repair costs. Here's everything you need to know about electric car insurance in Australia.

What does EV insurance cover?

EV insurance covers many of the same things as a standard car insurance policy, but with a few important extras tailored to how EVs are built and used. For instance, most EV policies include the core protections you'd expect, including:

• Damage to your car from accidents
• Theft or attempted theft
• Fire, storms and other natural events
• Damage you cause to other people's vehicles or property

EV-specific insurance also includes cover for core EV components/issues, such as:

• Damage to the battery from an accident
• Fire or electrical faults
• Portable charging cables and accessories
• Damage or theft of charging accessories
• Damage to onboard computer systems after an insured event
• Electrical system faults caused by accidents

Like standard policies, EV insurance generally won't cover:

• General wear and tear (including battery degradation over time)
• Mechanical or electrical breakdown not caused by an insured event

Is it more expensive to insure an electric car?

Yes, it can be. But the difference isn't always as large as many people expect. In Australia, EV premiums are often higher on average, largely due to the way these vehicles are built and repaired. However, the actual cost can vary significantly depending on the model you drive, your personal risk profile and the insurer you choose, meaning some drivers may find comparable pricing to traditional car insurance.

Why are EVs more expensive to insure?

Electric cars can cost more to insure than petrol or diesel cars, though the gap is narrowing. A few things drive the higher premiums:

• The battery. The battery is the most expensive part of an EV, and if it's badly damaged it can sometimes need replacing entirely, which can be a large share of the car's value. That risk is priced into your premium.
• Specialised repairs. Working on high-voltage EV systems requires trained technicians and specific equipment, and not every smash repairer is qualified. That can mean longer repair times and higher labour costs.
• Parts and availability. For some models, particularly newer or less-established brands, parts can be slower and more expensive to source.
• Higher vehicle values. Many EVs still carry a higher purchase price than equivalent petrol cars, and a higher-value car generally costs more to insure.

That said, EV insurance won't always be "more expensive". As more electric cars enter the market and repair networks expand, insurers are becoming more competitive in their pricing. Factors like your driving history, location and the specific EV model you choose can all influence your premium.

How is EV insurance different from regular car insurance?

At its core, EV insurance works just like a standard comprehensive car insurance policy: it covers accidental damage, theft, fire and weather events, and damage you cause to others. The difference is in the extra, EV-specific cover you should look for:

• Battery cover. Cover for the battery if it's damaged in an insured event like an accident or fire, the single most important EV-specific inclusion.
• Charging equipment. Cover for home charging cables, wall chargers and portable charging accessories, which a standard policy may not mention.
• Onboard systems. Cover for the EV's electrical and computer systems after an insured event.
• Choice of repairer. Because qualified EV repairers can be harder to find, being able to choose your own repairer is especially useful for EV owners.

Just as importantly, EV insurance generally won't cover battery degradation over time, that's treated as normal wear and tear, not an insured event, the same way it would be on any car. When comparing policies, the key is checking these EV-specific inclusions are actually there, rather than assuming a standard policy covers them.

Case study

Insuring Sarah’s Tesla

"Every year when I get a renewal for my car insurance, I treat it like an opening offer. In the last few years especially, insurance premiums have skyrocketed. So I will always shop around when I get the renewal to make sure I’m not paying too much. The last time I received my Tesla insurance renewal, it had increased over $100 a month. So I compared and found another insurer for the same amount I was previously paying. Every insurer prices risk differently so don’t make the mistake of thinking they’re all going to be about the same. You can potentially save a huge amount of money by shopping around! "

Sarah Megginson

Money expert + media spokesperson

Best insurance for an EV

The best car insurance for your electric vehicle is going to be one that covers you for all you need at a price you're happy to pay. To find this, here's a few key details to check for in the product disclosure statement (PDS):

• Agreed or market value: This refers to the amount your insurer will pay you if your EV is written off. Because of how pricey EVs tend to be, many people prefer providers who offer agreed value. This is because an agreed value policy allows you to agree on the amount the insurer will pay you if your car is totalled. If you choose market value then what you're entitled to is at the mercy of how your car is priced according to the market at the time. It'll account for the condition of your car, the kilometres on it and more.
• Charging equipment cover: Given a lot of insurers are tailored towards fuel or hybrid cars, it can be good to look for EV specific benefits like charging equipment cover, including wall mounts and wall chargers.
• Battery cover: Check that your provider covers EV batteries. This is important in the event the battery is damaged or catches fire.
• Choice of repairer: This benefit allows you to choose a mechanic or smash repairer of your choosing in the event your car requires repairs. This can be handy for EV owners as it may take your insurer longer to source an EV repairer from their own network.

Once you've compiled a list of insurers that can meet these needs, be sure to get quotes for all of them. You'll likely find hundreds of dollars in difference.

Tips for finding the right EV insurance

Finding the right policy for your electric car comes down to matching the cover to how EVs actually work, then comparing on price. A few tips:

• Check for EV-specific cover. Confirm the policy covers the battery, charging equipment and onboard systems, not just the basics.
• Consider agreed value. For a high-value EV, agreed value locks in a guaranteed payout if it's written off, rather than leaving it to market value at claim time.
• Look for choice of repairer. This lets you use a qualified EV specialist rather than waiting on the insurer's network.
• Compare several quotes. Insurers price EVs very differently, so get quotes from a few and compare like-for-like on cover level. You'll often find hundreds of dollars in difference.
• Read the PDS. The product disclosure statement is where you'll confirm exactly what's included, excluded and capped, essential on a high-value car.

Once you've shortlisted policies that cover what your EV needs, price becomes the deciding factor, and that's where comparing really pays off.

Is buying an electric car worth it?

Whether an EV is worth it depends on your budget and how you drive, but it's worth weighing the full running costs, not just the sticker price. On the plus side, EVs are usually much cheaper to run day to day: charging costs less than petrol, and with fewer moving parts, servicing and maintenance tend to be lower too.

On the other hand, EVs often cost more to buy upfront and can cost more to insure, though that varies by model and is becoming more competitive. Depreciation and battery longevity are also worth factoring in.

For many Australians, the lower running and servicing costs offset the higher purchase and insurance costs over time, especially for higher-mileage drivers. If you're weighing it up, it's worth getting an insurance quote for the specific model before you buy, since insurance is a real ongoing cost that's easy to overlook. For the full picture on choosing and financing a car, check out our car buying guide and car loans comparison.

FAQs

• How much is car insurance for a Tesla in Australia?

  Our research shows that average insurance costs vary by model:

  • Tesla Model 3 - $4,100.
  • Tesla Model Y - $4,500.
  • Tesla Model S - $4,900.
  • Tesla Model X - $5,500.

• How much is insurance for an electric car?

  Insurance for an EV will differ based on the model you own, the type of insurance you purchase and the provider you choose. Based off Finder research using a Tesla car model, average costs to insure an EV can be around $4,750 annually. Keep in mind, your specific EV model will drastically change the cost of the quote as costs are largely based on the value and availability of that model.

• Does car insurance cover EV batteries?

  Yes, most comprehensive car insurance policies will cover your EV battery if it's damaged in an insured event, such as an accident, fire or flood. However, gradual battery degradation over time is usually not covered, so it's important to check your policy for any exclusions.

• Why is electric car insurance more expensive?

  Electric car insurance can be more expensive because EVs often cost more to repair and replace. High-value batteries, specialised parts and a smaller network of qualified repairers can all increase claim costs, which insurers factor into premiums.

• Is electric car insurance different from regular car insurance?

  Electric car insurance works similarly to standard car insurance but includes cover tailored to EVs, such as protection for the battery and sometimes charging equipment. Policies may also include cover for add-ons, like specialised repairs and hire car expenses.

• Are home EV chargers covered by insurance?

  Some comprehensive car insurance policies cover home charging cables and portable chargers, but fixed wall chargers are not always included. In many cases, you may need home and contents insurance to cover a permanently installed charging unit.

Written by

Peta Taylor

Publisher of Insurance

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Peta Taylor is a publisher at Finder, working across all of insurance. She's been analysing product disclosure statements and publishing articles for over 2 years. Peta is passionate about demystifying complex insurance products to help users make well educated decisions with confidence. Peta is part of Finder's insurance awards team and works alongside editorial and insights experts to bring users the best insurance products every year. See full bio