New research has found the average quoted comprehensive insurance premium for electric vehicles (EVs) in Australia is significantly higher than for hybrid (HEV) and plug-in hybrid (PHEV) vehicles, though some EVs are significantly more expensive to insure than others.
Insurance comparison website Compare the Market quoted comprehensive car insurance policies for 20 popular and “notable” hybrid, PHEV and EV models across 11 well-known insurance brands and six underwriters.
No petrol or diesel vehicles were included in this study.
Insurance premiums for Tesla Model Y RWD and Model 3 RWD vehicles decreased by six per cent on average compared to quotes for identical policies in October 2024.
Compare the Market nevertheless found these two models cost more than $3000 on average to insure annually, helping to drive up the overall average EV insurance premium to $2134.26.
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That’s several hundred dollars more than the combined hybrid/PHEV average of $1649.93, even though Compare the Market found premiums for popular hybrids like the Toyota RAV4 GX and Corolla Ascent Sport had increased by around two per cent on average.
The company notes a range of factors influence car insurance premiums, including the rising cost of parts and labour, which the Insurance Council of Australia says account for around 60 per cent of claims expenses.
Some EVs undercut comparable hybrids and PHEVs in average premium cost.
The BYD Dolphin Essential, for example, had an average premium of $1425.13, while a similarly sized Toyota Corolla Ascent Sport Hybrid cost $1587.40 to insure.
Similarly, a BYD Sealion 7 EV cost $1769.96, narrowly undercutting the Toyota RAV4 Hybrid GX FWD cost of $1772.86, although undercutting both was the BYD Sealion 6 PHEV ($1473.21).
Out of the 20 vehicles, only five – the Tesla Model 3 and Model Y, BYD Shark 6, BMW iX1 and Zeekr X – had an average insurance premium of more than $2000, and of these only the Teslas exceeded $3000.
Here’s the breakdown:
EVs
| Model | March 2025 average premium |
|---|---|
| Tesla Model 3 RWD | $3334.04 |
| Tesla Model Y RWD | $3109.81 |
| BMW iX1 eDrive20 | $2974.69 |
| Zeekr X RWD | $2016.37 |
| Kia EV5 Air Standard Range | $1871.13 |
| BYD Sealion 7 Premium | $1769.96 |
| MG 4 Excite 51 | $1645.74 |
| Xpeng G6 Standard Range | $1606.15 |
| Toyota bZ4X 2WD | $1589.53 |
| BYD Dolphin Essential | $1425.13 |
| ALL MODEL AVERAGE | $2134.26 |
Hybrids and PHEVs
| Model | March 2025 average premium |
|---|---|
| BYD Shark 6 Premium | $2071.36 |
| Toyota Camry Ascent Hybrid | $1819.18 |
| Toyota RAV4 GX 2WD Hybrid | $1772.86 |
| GWM Haval H6 Lux Hybrid | $1643.76 |
| MG ZS Excite Hybrid+ | $1619.98 |
| Toyota Corolla Ascent Sport Hybrid | $1587.40 |
| Hyundai Tucson Hybrid | $1560.53 |
| Toyota Corolla Cross GX Hybrid | $1479.85 |
| BYD Sealion 6 | $1473.21 |
| Hyundai Kona Hybrid | $1471.19 |
| ALL MODEL AVERAGE | $1649.93 |
For the research, Compare the Market selected the latest available entry-level versions of each nameplate, finished in white and with no pre-existing damage or options or modifications specified.
It also noted not all insurers and products were available for all vehicles.
The quotes were based on a March 15, 2025 commencement date for a 34-year-old male renting a home in Alderley in Brisbane, with market value coverage and a $900 excess.
For insurers that didn’t offer these options, Compare the Market selected the closest possible excess as well as the default agreed value amount.
A study by insurer Youi last year found that among 2022-24 vehicles priced between $37,501 and $50,000, EVs cost slightly less to insure than combustion-powered vehicles and slightly more than hybrids.
The Youi study looked at the median premium. In the $50,001 to $75,000 bracket where many Tesla vehicles sit, the gulf in median premium widened significantly, with EVs costing $1887, ICE vehicles $1393, and hybrids $1219.
This gulf in median premiums in turn shrunk for vehicles priced $75,001 and above, though EVs still proved pricier than hybrids and ICE vehicles.
