New data reveals huge insurance cost gap for popular electric cars
Aussie motorists have been urged to check a key feature of their cars now, amid claims it could be costing them dearly.
Aussie EV owners are being urged to check their insurance premiums after wild new data revealed some drivers may be paying $3,000 more than others for identical coverage.
It comes as the federal government continues to push for an EV road user charge.
New data by Compare the Market shows premiums for low-emission vehicles have barely shifted this year, slipping by less than 2 per cent between March and September.
But the real shock was the gulf between insurers on some of the country’s most popular electric models.
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A Tesla Model 3 owner, for example, could be quoted anywhere from $2375 to $5013 for comprehensive cover. For a BMW iX3, the spread was even wider, starting from $1891 to $5257.
Compare the Market reviewed 20 of Australia’s most popular electric and hybrid vehicles, collecting comprehensive insurance quotes from 12 insurers and six underwriters.
Compare the Market’s Economic Director David Koch said repair costs, specialist parts and labour for EVs could influence the numbers, but suggested insurers’ profit margins were also likely playing a role.
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“It’s just shocking – the quoted premium differences between insurers for a similar car insurance policy can be thousands for some models,” he said.
“There can be a variety of risk-based reasons behind the big price discrepancies – including the higher cost for labour and specialised parts on electric vehicles – but it wouldn’t surprise me that their bottom line is another driving factor.
“This is exactly why shopping around is so important because Australians could be pouring thousands more on their bills than necessary.”
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According to the comparison site, the average annual premium for an electric vehicle is now about $2100, while hybrid owners pay around $1600.
And with the Albanese Government considering a road-user charge to replace the fuel excise, which EV owners currently avoid, the financial advantage of going electric could narrow further.
“The potential charging cost savings today are being diminished,” Mr Koch said.
“For now, the power is in consumers’ hands to shop around for insurance and other household bills.”
Originally published as New data reveals huge insurance cost gap for popular electric cars
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