Electric vehicles (EVs) typically remain more expensive to insure than combustion-powered and hybrid vehicles, according to claims data from insurance company Youi.
The insurer has provided data showing the median premium for EVs, hybrids and combustion-powered (ICE) vehicles across model years 2022, 2023 and 2024.
Interestingly, in most cases Youi’s data shows hybrids are cheaper than not only EVs to insure, but also solely combustion-powered vehicles.
That’s despite hybrids having a battery like an EV (if much smaller), as well as a combustion engine.
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“When looking at the different in overall average pricing, we see this difference is more about the mix of customers that choose a hybrid vehicle compared to a petrol vehicle, their age, driving experience, location etc,” explained Marni Jackson, Youi’s head of product for vehicles including cars and motorcycles.
“We find younger drivers (under 25) are more likely to have a petrol vehicle compared to a hybrid vehicle.”
A driver’s age is just one of several factors that can affect your insurance premiums, with Youi noting others include your driving history and where you live.
The data below shows the median premiums based off vehicle quotes from August 1, 2023 to July 31, 2024.
Youi has included only model years 2022, 2023 and 2024 as these account for the majority of EV quotes.
2022 to 2024 median premiums
| Vehicle price | EV | ICE | Hybrid |
|---|---|---|---|
| $37,501 to $50,000 | $1125 | $1153 | $1103 |
| $50,001 to $75,000 | $1887 | $1393 | $1219 |
| $75,001 and above | $1837 | $1703 | $1670 |
Youi also provided a breakdown for each year.
Notably, for 2022 and 2023 there isn’t as significant a variance in median premiums between EVs and ICE and hybrid vehicles when it comes to vehicles under $50,000.
In fact, the median premium is lower for EVs than ICE vehicles across all three model years included in the data.
In higher price brackets, however, the median premium for EVs is considerably higher than for other vehicles.
2022
| Vehicle price | EV | ICE | Hybrid |
|---|---|---|---|
| $37,501 to $50,000 | $1099 | $1198 | $1099 |
| $50,001 to $75,000 | $1759 | $1425 | $1304 |
| $75,001 and above | $1847 | $1754 | $1822 |
2023
| Vehicle price | EV | ICE | Hybrid |
|---|---|---|---|
| $37,501 to $50,000 | $1127 | $1155 | $1123 |
| $50,001 to $75,000 | $1831 | $1386 | $1243 |
| $75,001 and above | $1792 | $1698 | $1647 |
2024
| Vehicle price | EV | ICE | Hybrid |
|---|---|---|---|
| $37,501 to $50,000 | $1125 | $1153 | $1086 |
| $50,001 to $75,000 | $2015 | $1378 | $1169 |
| $75,001 and above | $1937 | $1669 | $1522 |
“There are a few reasons why an EV may be more expensive to insure. These reasons are primarily centered around a higher repair cost, and the cost of skilled labour for EVs (with high demand and low supply),” said Ms Jackson.
“The repair network is still in its early stages of getting established, there are fewer EV repairers available, which can increase the time it takes to get an EV repaired, subsequently increasing secondary costs, like hire car.
“EVs are also more likely to be built with more advanced technology, the location of the battery is different compared to an ICE with a front engine, and there are differences in suspension and materials used.”
It’s worth noting combustion-powered vehicles accounted for more of the quotes. Below is a breakdown, looking at combined quotes for model years 2022, 2023 and 2024.
| Vehicle price | EV | ICE | Hybrid |
|---|---|---|---|
| $37,501 to $50,000 | 1192 | 16,209 | 2978 |
| $50,001 to $75,000 | 2330 | 17,089 | 3931 |
| $75,001 and above | 855 | 5784 | 1169 |
The gulf in the number of quotes between ICE vehicles and EVs and hybrids corresponds with the significantly larger market share ICE vehicles have.
In 2023, petrol and diesel vehicles combined accounted for just under 80 per cent of all new car sales in Australia.
Hybrids accounted for eight per cent of the market, EVs just over seven per cent of the market, and plug-in hybrids for just under one per cent.
