Why does EV insurance cost more in Australia? EV vs petrol vs hybrid

Get a quote for an electric car and it will often come in higher than a similar petrol car or hybrid. Here's how big the gap is, why it exists, and what you can do about it.

How big is the gap?

• The average comprehensive premium quoted for an EV was about $2,300 a year, compared with about $1,700 for a hybrid or plug-in hybrid (Compare the Market, March 2026).
• EV premiums rose about 10% in the 12 months to March 2026, versus about 7% for hybrids and plug-in hybrids.
• CHOICE's January 2026 quotes show a similar picture: EVs averaged around $800 a year more than petrol cars.

These are averages. Your quote depends on the car, its value, your age, driving history and postcode.

Five reasons EVs cost more to insure

1. Repairs cost more

Many EV parts are imported, and the parts network is still growing. Waiting for parts adds cost.

2. Fewer trained technicians

Working on a high-voltage car needs specialist training and equipment. Fewer qualified repairers means higher labour costs.

3. Longer repair times

With fewer repairers, cars wait longer to be fixed, and insurers often pay for a hire car in the meantime.

4. The battery

The battery usually sits under the floor. Even minor underbody damage can mean an expensive inspection, and a damaged battery can turn a repairable car into a write-off.

5. Higher car values

Many EVs still cost more to buy than a similar petrol car, so they cost more to replace if stolen or written off.

What about hybrids?

Hybrids usually sit in the middle. They often cost a bit more to insure than a similar petrol car, but less than an EV. Insurer data also shows the type of driver matters: younger drivers, who pay the highest premiums, are more likely to drive petrol cars.

Will the gap close?

It should narrow as more repairers train up and parts become easier to get. So far, though, EV premiums are still rising faster than hybrid premiums.

How to pay less

• Compare quotes every year. Prices for the same car can differ by hundreds of dollars between insurers.
• Check what's covered. Look for cover for the battery, your portable charging cable and your home wall charger.
• Consider a higher excess. It lowers the premium, as long as you can afford the excess if you claim.
• Look at the whole picture. Savings on fuel and servicing can outweigh higher insurance.

Work out your real yearly cost

Our free novated lease vs loan vs cash calculator lets you enter your insurance and rego, so you can see the full cost of owning the car. The EV vs petrol or hybrid calculator shows how much you could save on fuel and servicing to set against a higher premium. Or see all free tools.

Sources: Insurance Business (Compare the Market EV insurance index, Apr 2026), CHOICE, CarExpert (Youi data). Figures are averages and change over time.