Australians insuring electric vehicles continue to be slugged with higher premiums according to new research by Compare the Market showing premiums for some popular models can be north of $3,000.
The car insurance comparison experts quoted comprehensive car insurance policies for 20 popular and notable hybrid and electric vehicles across 11 well-known insurance brands and six underwriters.
The first iteration of the bi-annual index revealed that a full EV was quoted to cost $2,134 on average to comprehensively insure, while hybrid and plug-in hybrid EVs were quoted to cost $1,649 on average.
Compared to quotes for identical policies from October 2024, premiums for both the Tesla Model Y RWD and Model 3 RWD EVs decreased 6% on average. Meanwhile quotes for the Toyota RAV4 GX and Corolla Ascent Sport hybrids were up around 2% on average.
A range of factors influence car insurance premiums, including the rising the cost of repairs due to pricier parts and labour – which account for around 60% of claims expenses, according to the Insurance Council of Australia.1
Average quoted BEV insurance premiums
| Make & Model | March 2025 |
| Tesla Model Y RWD | $3,109.81 |
| Tesla Model 3 RWD | $3,334.04 |
| MG 4 Excite 51 | $1,645.74 |
| Kia EV5 Air Standard Range | $1,871.13 |
| BYD Sealion 7 Premium | $1,769.96 |
| BYD Dolphin Essential | $1,425.13 |
| Zeekr X RWD | $2,016.37 |
| Xpeng G6 Standard Range | $1,606.15 |
| Toyota bZ4X 2WD | $1,589.53 |
| BMW iX1 eDrive20 | $2,974.69 |
| ALL MODEL AVERAGE | $2,134.26 |
Average quoted HEV/PHEV insurance premiums
| Make & Model | March 2025 |
| Toyota RAV4 GX 2WD Hybrid | $1,772.86 |
| Toyota Crolla Ascent Sport Hybrid | $1,587.40 |
| Toyota Corolla Cross GX Hybrid | $1,479.85 |
| Hyundai Kona Hybrid | $1,471.19 |
| Hyundai Tucson Hybrid | $1,560.53 |
| Toyota Camry Ascent Hybrid | $1,819.18 |
| BYD Shark 6 Premium | $2,071.36 |
| BYD Sealion 6 | $1,473.21 |
| GWM Haval H6 Lux Hybrid | $1,643.76 |
| MG ZS Excite Hybrid+ | $1,619.98 |
| ALL MODEL AVERAGE | $1,649.93 |
Compare the Market’s Economic Director, David Koch, said higher premiums could be prohibitive for aspiring EV owners but urged motorists not to be disheartened before running a comparison.
“What we found was a shocking difference between quote from different insurers that could mean some motorists end up paying hundreds – sometimes thousands – more,” Mr Koch said.
“The quoted difference between the cheapest and most expensive insurer for the Tesla Model 3 sedan was a whopping $3,100 for a similar policy. For a cheaper EV like the MG 4 hatchback, the delta was $836. With price gaps that big, it pays to shop around.”
Amid the booming popularity of hybrid and plug-in hybrid models, electrified vehicles were also included in the new Compare the Market EV index.
“Hybrids were considerably cheaper to insure than a full EV on average, despite featuring both electric and combustion engine components,” Mr Koch said.
“However, with all the hybrid quotes costing over a grand, they still aren’t as cheap to insure.
“Still, the quoted difference between the cheapest and priciest insurer for the Toyota RAV4 Hybrid was $1,456 and the delta for the BYD Shark 6 PHEV was $885.
“Expect insurance prices to normalise as the market matures, but for now, don’t be deterred – shop around.”
Disclaimers
Always read the Product Disclosure Statement (PDS) and Target Market Determination (TMD) to check for the inclusions, exclusions and restrictions before purchasing.
Comprehensive car insurance policies were quoted across 11 insurers and six underwriters for 10 popular and notable full battery-electric vehicle (BEV) models, and 10 popular and notable hybrid (HEV) and plug-in hybrid electric vehicle (PHEV) models. Not all insurers and products were available for all vehicles.
The latest-available models and entry-level variants were selected.
Premiums were quoted using Compare the Market’s car insurance comparison tool and other well-known insurance brands, based on a next-day 15 March 2025 commencement date.
Quotes obtained were averaged for each model, and overall for all 10 BEV and all 10 HEV/PHEV models.
The annual comprehensive car insurance policies were based on a targeted $900 excess for a 34-year-old male living in Alderley, Brisbane (4051) with market value coverage. Where an insurer did not offer a $900 excess option, the closest amount within $100 was selected. Where an insurer did not offer the market value option, the default agreed value amount was used.
We assumed the owner drives up to 15,000km per year (for private use and/or commuting to work only) with a clean driving history, parks the vehicle in a garage, does not own a home, does not own another vehicle, and is employed full-time. All three vehicles had a white exterior colour, no pre-existing damage, and no options or modifications.
Additional sources:
- Insurance Council of Australia – Motor Insurance Policy Paper: A Roadmap for Reducing Rising Premiums
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For more information, please contact:
Henry Man | [email protected] | +61 474 368 908
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