PEOPLE BUYING EVS TO SAVE MONEY are learning, to their cost, that it is not always as it seems.
A recent study carried out by comparison site, Compare the Market, has found that EVs are almost 50 percent more expensive to insure than their internal combustion engine equivalents.
They polled 12 insurers about the top five best-selling EVs and uncovered the shocking finding that they are 43 percent more expensive to insure than similar combustion engine models.
That equates to anything between $98 and $1788 in additional premiums each year.
Some EVs may be priced on a par with petrol-powered models, but that doesn’t seem to impact with insurers.
Some examples quoted included the Tesla Model Y RWD. It costs $3434.98 to insure, while a Toyota RAV4 Cruiser 2WD is almost 97 percent cheaper at $1744.95. Meanwhile, the Tesla Model 3 RWD comes in at an eye-watering $3888.55 a year to insure, compared to the Audi A4 35 TFSA sedan that costs $2101.04, or 85 percent less.
| Tesla Model Y RWD | Tesla Model 3 RWD | BYD Seal Dynamic | BYD Atto 3 Standard Range | MG 4 Excite 51 | |
| Average price for comprehensive insurance (EV) | $3434.98 | $3888.55 | $2088.05 | $1609.47 | $1470.33 |
| Toyota RAV4 Cruiser 2WD | Audi A3 35 TFSI (sedan) | Mazda 6 G35 Atenza | Toyota Corolla Cross Atmos 2WD | Hyundai i30 N Line (hatch) | |
| Average price for comprehensive insurance (ICE) | $1744.95 | $2101.04 | $1871.79 | $1399.14 | $1371.73 |
| Percentage difference | +96.85 per cent | +85.08 per cent | +11.55 per cent | +15.03 per cent | +7.19 per cent |
So, how do insurance companies justify the difference?
They claim that the battery pack creates more complexity for repairers, and therefore more expense when a claim is made. In addition, they tell us that many parts specific to EVs need to be imported from overseas and there are fewer qualified repairers for electric cars.
Compare the Market suggests it will pay to shop around and not necessarily stay loyal to the same insurer year on year.
Premiums were calculated based on a 34-year-old male driver, living in Brisbane who drives 15,000km per year (private use of commuting to work only), with a clean driving record, owns a home with a garage, does not own another vehicle and is employed full-time.