Electric and hybrid vehicle insurance premiums have increased over the past year, as more Australians indicate plans to move away from petrol and diesel cars in response to higher fuel prices, according to new market data. Compare the Market’s latest electric vehicle (EV) insurance index shows that average comprehensive premiums for battery electric vehicles (BEVs) rose 10.2% in the 12 months to March 2026. Hybrid and plug‑in hybrid models posted a 6.6% average increase over the same period. The premium shifts are occurring alongside higher EV sales and more quote activity, prompting insurers and intermediaries to reassess pricing, repair networks, and product structures as the motor portfolio mix changes.
Compare the Market’s polling indicates that more than half of surveyed Australians are now considering an EV or hybrid as a potential next vehicle, with fuel expenses a key driver. More than 54% of respondents said they would consider changing to an electric or hybrid model. Almost 7% said recent fuel price rises had prompted them to think about an EV for the first time, while about one quarter (24.9%) said higher fuel costs had reinforced an existing intention to opt for an EV. A further 22.5% indicated they would look at moving to a hybrid with lower fuel use. At the same time, the index suggests that new EV owners may face higher motor insurance costs than many drivers of internal combustion engine (ICE) vehicles. Compare the Market said separate analysis continues to find that EVs are, on average, more expensive to insure than comparable petrol and diesel models, reflecting differences in repair and parts costs.
The biannual EV insurance index is based on average quoted premiums from 11 insurers and six underwriters across a set of battery electric and hybrid models. In March 2026, the average quoted comprehensive premium for a BEV in the sample was about $2,300, up from $2,071 a year earlier. Hybrids and plug‑in hybrids recorded an average premium of roughly $1,700, compared with $1,597 in March 2025. At model level, movements varied.
Among BEVs, some models saw relatively small percentage changes, while others recorded larger year‑on‑year shifts. The Tesla Model Y RWD and Tesla Model 3 RWD both increased in dollar terms, by 5% and 3%, respectively. The Xpeng G6 Standard Range and Toyota bZ4X 2WD each rose 24%, the Zeekr X RWD increased 19%, the BMW iX1 eDrive20 was up 11%, and the BYD Dolphin Essential climbed 9%. In contrast, the MG 4 Excite 51 recorded a 4% reduction in its average quoted premium.
Hybrid and plug‑in hybrid premiums moved more gradually. The Toyota RAV4 GX 2WD Hybrid and Corolla Cross GX Hybrid each recorded around 9% growth in average premiums. The Hyundai Tucson Hybrid rose 8%, while the Hyundai Kona Hybrid and several others saw mid‑single‑digit increases. The Toyota Corolla Ascent Sport Hybrid fell 5%, and the Toyota Camry Ascent Hybrid declined 2%, highlighting that hybrid pricing trends are not uniform across models.
Compare the Market’s economic director, David Koch, said the recent premium changes reflect cost pressures across the motor class rather than limited data on EV performance. “With new models and more data coming to hand, you would expect prices to stabilise over time. Unfortunately, we have not seen this happen,” Koch said. He cited labour and parts inflation as key influences, with implications for EV repairs. “The rising cost of labour and parts continue to push premiums higher, and this particularly affects electric cars due to battery replacement costs and the specialised training needed for repairs,” he said. He said many households are looking to EVs to manage variability in fuel spending and that insurers will monitor how claim frequencies, severity, and repair pathways evolve. “With more Aussies choosing to go electric as a shield against rising fuel prices, we hope to insurance premiums improve too. For now, one of the easiest ways to save is to shop around for better deals,” he said.
NRMA Insurance is also observing increased interest in EV cover, aligned with recent oil price movements and concerns over fuel security. Internal data from NRMA Insurance indicates that EV quote volumes rose 42% in March 2026 and 81% year on year. The insurer reported the largest increases in New South Wales, Queensland, and South Australia, following events in the Middle East that contributed to higher crude prices in early March.
Shawn Ticehurst, head of automotive research at NRMA Insurance, said the pattern is consistent with previous energy price shocks. “It’s clear consumer sentiment towards EVs is shifting. NRMA Insurance is seeing a clear spike in the number of Australian drivers looking to EVs amid the most significant oil price shock in decades and ongoing concerns about petrol supply. At the same time, the expanding range of affordable EV models is giving motorists a clearer understanding of the day‑to‑day cost savings EVs can deliver,” Ticehurst said.
Ticehurst contrasted current sentiment with NRMA Insurance’s “Changing Gears” research conducted in 2024, which found that only about one in five Australians planning to buy a car in the next five years were considering an EV, with upfront cost, range anxiety, and charging times frequently mentioned as barriers. “Today, with more than 100 EV models now available across every major price tier, a growing second-hand market, rising confidence in charging infrastructure, and repair capability, those concerns are fading fast,” Ticehurst said.
Industry data from the Federal Chamber of Automotive Industries and the Electric Vehicle Council indicates a shift in the national vehicle fleet. BEVs accounted for 11.8% of new vehicle registrations in February 2026, with 7,715 BEVs out of more than 90,000 new vehicle deliveries. When additional volumes recorded by the Electric Vehicle Council are included, total EV sales for the month reached 11,134 units out of 94,131 vehicles. EV share has more than doubled from February 2025, when BEVs made up 5.9% of the market.
Across January and February 2026 combined, EV sales totalled 18,543 units, compared with 9,516 in the same period a year earlier. Plug‑in hybrids also recorded higher volumes, with 5,854 units sold in February 2026 versus 4,871 in February 2025. Tesla and BYD led EV registrations in February, delivering more than 3,200 and 2,969 vehicles, respectively. Zeekr’s 7X recorded 628 units in its second month on sale. The Tesla Model Y was the highest‑volume EV model with 2,791 units, followed by the BYD Sealion 7 (1,327), Zeekr 7X (628), Tesla Model 3 (483), and Geely EX5 (416). Other models with notable volumes included the MG4, several BYD models, and the Omoda Jaecoo J5. The combination of growing EV penetration, distinct repair requirements, and rising claims costs suggests that pricing methodologies, underwriting criteria, and product features for electric and hybrid risks will remain under active review over the medium term.
