The EV Insurance ‘Sting’ Facing Aussie Drivers Fleeing the Fuel Crisis
Despite more drivers making the electric transition, new data has revealed that EV insurance quotes have increased by 10 per cent in one year.
Recent Trends in EV Adoption
While most drivers feel the soaring prices of petrol, recent data has indicated a significant surge in Aussie motorists opting for electric cars due to the Middle East conflict. According to CommBank, new EV car loans increased by an astonishing 161 per cent in March compared to the weekly volume average recorded before the war in Iran began. The trend extends to businesses, with business loans on Teslas alone up 268 per cent year-on-year.
Rising Insurance Costs
Despite the recent surge in sales, a recent report by Compare the Market’s EV insurance index shows that comprehensive insurance quotes for electric cars rose by an average of 10.2 per cent between 2025 and 2026. Hybrid models also saw a premium increase of 6.6 per cent.
The data reveals that it now costs approximately $2300 on average to comprehensively insure an EV in Australia, while hybrid cars insurance premiums sit around $1700. Specifically, the Tesla Model Y RWD saw a 5 per cent increase in its average quoted premium, while the Tesla Model 3 sedan recorded a 3 per cent rise.
However, a Tesla Australia spokesperson noted in February 2026 that their brand-backed insurance product has resulted in lower premiums for their models.