Electric vehicle insurance and energy plans

As electric vehicles become more common on Australian roads, it’s worth understanding what insurance is available for EVs. While ‘electric vehicle insurance’ isn’t a specific product, you can still insure electric cars on a standard insurance policy. Getting cover may financially protect you if you’re in an accident, your car is stolen and more, depending on your level of cover.

The inclusions of your policy will vary depending on the type of policy and the level of cover you choose. If you choose to take out a comprehensive car insurance policy, you may be covered for:

• Damage to your vehicle. This can include events such as collisions, severe weather (e.g. hail), fire, theft, or malicious damage.
• Personal liability. If you’re involved in an accident and you’re responsible for damage to another person’s property, your legal liability might be covered.
• Personal effects. If your belongings are damaged due to an event covered by your insurance (e.g. weather, theft) you may be reimbursed up to a set limit.
• Getting a hire car. If you need a hire car after your car is damaged or stolen, your insurer may be able to arrange an electric hire car.
• EV batteries. If your electric car battery is damaged or catches fire, you may be covered for its replacement.
• EV charging equipment. If your charging cables, adapters, or wall box are damaged and need replacing, you may be covered.

If comprehensive cover doesn’t fit your budget, there are lower levels of cover such as Third Party Property Damage (TTPD) and Third Party Fire and Theft (TTFT). However, specific EV benefits for charging equipment and batteries may not be included.

When comparing electric car insurance, be sure to read the relevant Product Disclosure Statement (PDS) to check the inclusions, exclusions and limitations of your policy. It’s a good idea to read the Target Market Determination (TMD) as well, to check whether a policy is right for you.

Yes, if you’re an EV owner and have a comprehensive car insurance policy, you may be covered not only for your car, but also EV charging equipment. This can include wall charges, mounts and charging cables. You may also be covered for some damages from fire caused by your battery overheating (known as the battery thermal runway).

Electric vehicles may offer cheaper running costs compared to petrol vehicles with an internal combustion engine. However, the cost of electric car insurance may be higher. There are several reasons that EVs may be more expensive to insure:

• EV repair costs. Electric vehicles can be more expensive to repair or replace than petrol ones.
• Supply chain shortages. Due to the EV market still being comparatively small, there can be supply shortages for parts in Australia, and some parts may need to be imported.
• Repair specialists. Electric vehicles may require specialist mechanics to be repaired.
• Higher purchase value. Getting a new EV may cost more than a typical new car. The higher the value of your vehicle, the higher your premiums will be.

One way to potentially lighten the cost of EV insurance is to compare costs and inclusions across a range of providers before committing to a policy.

One major concern for electric vehicle owners is having to charge the battery. EVs can consume a lot of power, so if you’re charging at home and not at a charging station, you may be concerned about your electricity bill. Luckily, many electricity providers offer specific electric vehicle energy plans.

An EV energy plan can help you charge your car at home without sending your energy bill into overdrive. For example, your energy provider may offer an extremely low, or even no, electricity rate between certain hours of the day (e.g. midnight to 6am). This means you can charge your EV during those hours without fear of bill shock. However, these rates and times vary between providers, so it can be a good idea to compare energy plans to search for one that suits your needs.

If you have solar power you may benefit from charging your EV during the hours where you have surplus electricity from the sun. Using solar power can keep you from needing to draw electricity from the grid to power your car and save you money in the long run.

The risk is that on overcast, rainy, or winter days, you may not get the same amount of sunlight that you would on a bright sunny day. Having less solar energy may mean you need to pull directly from the grid to power your EV, which can get expensive quickly. If you invest in a solar battery you may see higher cost efficiencies by being able to store solar energy and have flexibility with charging times. Consider if you need a battery as well as your location and the number of hours of sunlight a day you receive before committing to just using solar energy.