More than 54%* of Australians are considering a switch to an electric or hybrid car amid rising fuel costs, but Compare the Market is urging motorists to avoid being stung with higher insurance premiums by taking time to shop around.
Almost 7% of drivers polled said expensive fuel had prompted them to consider an EV for the first time, while around a quarter (24.9%) said rising costs had further confirmed their interest to switch. A further 22.5% said they would consider upgrading to a fuel-efficient hybrid model.
But the latest figures from Compare the Market’s electric vehicle insurance index suggest new EV owners could be hit with pricing trouble from a different direction: insurance.
The cost to comprehensively insure a full battery-electric vehicle has climbed 10.2% on average, while hybrid models have experienced a 6.6% average increase over the past 12 months.
The bi-annual study covering 11 popular insurers and six underwriters found the average cost to insure a full EV was around $2,300 and hybrids were about $1,700.
The findings come as pure EV sales jumped by around 89% year-on-year in March 2026, according to Federal Chamber of Automotive Industries and the Electric Vehicle Council data. More electrified vehicles were delivered – including hybrids, plug-in hybrids, and full electric combined – than petrol-powered cars last month.
Average quoted BEV insurance premiums
| Make & Model | March 2025 | March 2026 | YoY DIFFERENCE (%) |
| Tesla Model Y RWD | $3,039 | $3,203 | +$164 (5%) |
| Tesla Model 3 RWD | $3,257 | $3,356 | +$99 (3%) |
| MG 4 Excite 51 | $1,592 | $1,524 | -$68 (4%) |
| Kia EV5 Standard Range | $1,781 | $1,921 | +$140 (7%) |
| BYD Sealion 7 Premium | $1,786 | $1,795 | +$9 (0.5%) |
| BYD Dolphin Essential | $1,437 | $1,578 | +$141 (9%) |
| Zeekr X RWD | $1,831 | $2,271 | +$440 (19%) |
| Xpeng G6 Standard Range | $1,610 | $2,135 | +$525 (24%) |
| Toyota bZ4X 2WD | $1,601 | $2,122 | +$521 (24%) |
| BMW iX1 eDrive20 | $2,777 | $3,152 | +$375 (11%) |
| ALL MODEL AVERAGE | $2,071 | $2,306 | +$235 (10%) |
Source: Compare the Market
Average quoted HEV/PHEV insurance premiums
| Make & Model | March 2025 | March 2026 | YoY DIFFERENCE (%) |
| Toyota RAV4 GX 2WD HEV | $1,678 | $1,844 | +$166 (9%) |
| Toyota Corolla Ascent Sport HEV | $1,524 | $1,448 | -$76 (5%) |
| Toyota Corolla Cross GX HEV | $1,424 | $1,580 | +$156 (9%) |
| Hyundai Kona Hybrid | $1,417 | $1,498 | +$81 (5%) |
| Hyundai Tucson Hybrid | $1,493 | $1,627 | +$134 (8%) |
| Toyota Camry Ascent HEV | $1,737 | $1,698 | -$39 (2%) |
| BYD Shark 6 Premium | $2,059 | $2,172 | +$113 (5%) |
| BYD Sealion 6 Essential | $1,482 | $1,821 | +$339 (18%) |
| GWM Haval H6 Lux Hybrid | $1,594 | $1,727 | +$133 (7%) |
| MG ZS Excite Hybrid+ | $1,558 | $1,680 | +$122 (7%) |
| ALL MODEL AVERAGE | $1,597 | $1,709 | +$112 (6%) |
Source: Compare the Market
Separate research shows that EVs are generally more expensive to insure than petrol and diesel models.
However, motorists could uncover cheaper deals by shopping around.
Compare the Market’s Economic Director David Koch said rising EV insurance costs were concerning to see.
“With new models and more data coming to hand, you would expect prices to stabilise over time. Unfortunately, we have not seen this happen,” Mr Koch said.
“The rising cost of labour and parts continue to push premiums higher, and this particularly affects electric cars due to battery replacement costs and the specialised training needed for repairs.
“With more Aussies choosing to go electric as a shield against rising fuel prices, we hope to insurance premiums improve too.
“For now, one of the easiest ways to save is to shop around for better deals.”
When referencing this research, please attribute: https://www.comparethemarket.com.au/
Disclaimers
*Compare the Market commissioned Pureprofile to survey a nationally representative sample of 908 Australians in March 2025.
Always read the Product Disclosure Statement (PDS) and Target Market Determination (TMD) to check for the inclusions, exclusions and restrictions before purchasing and determine if the policy is suitable for you.
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. Entry-level variants were selected.
Not all insurers and products were available for all vehicles.
Premiums were quoted using Compare the Market’s car insurance comparison tool and other well-known insurance brands, based on a next-day 5 March 2026 commencement date.
Quotes obtained were averaged for each model, averaged overall for all 10 BEV and all 10 HEV/PHEV models, and the quote variance (difference between the cheapest and priciest) was also calculated for each model.
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 was selected.
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.
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For more information, please contact:
Henry Man | [email protected] | +61 474 368 908
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