Most Australians believe electric vehicles are the most expensive cars to insure, but new data from national insurance provider Youi suggests this perception may be incorrect.
Research released on Monday shows 56% of Australians think EVs carry the highest insurance premiums. However, Youi’s quoting data indicates EV insurance costs often fall within the same initial price range as regular vehicles before individual circumstances are considered.
“There’s a lot of misinformation out there,” said Marni Jackson, Youi’s head of product – vehicle and leisure. “When comparing Youi’s insurance premium data, EVs and regular vehicles often fall within the same initial price range, before comparing individual circumstances.”
The findings come from Youi’s EV Data Digest report, conducted by Dentsu Intelligence in August with more than 1,000 Australians. The study reveals widespread uncertainty about electric vehicles, with 85% of Australians lacking confidence in understanding key aspects of EV ownership, from charging times to insurance costs.
Only 7% of Australians have ever owned or leased an electric vehicle, though the research shows experience drives confidence. Among current EV owners, 78% say they are likely to purchase another electric vehicle, compared to just 22% of the general population.
The insurance misconception reflects broader barriers to EV adoption. Purchase cost remains the biggest obstacle, cited by 53% of respondents, followed by the cost of installing home charging stations at 48% and availability of public charging stations at 47%.
Confidence levels are particularly low regarding resale value, with only 14% feeling confident in their understanding. Similarly, just 14% feel confident about repair costs and only 11% understand available government rebates.
“The research shows that while many Australians are still uncertain about EVs, they’re actively considering them,” Jackson said. “In fact, 69% say they need more information before they feel confident purchasing, yet 55% also say sustainability is a key factor in decision-making.”
Youi’s data shows EV insurance quotes have grown from 0.66% in 2021 to 2.78% in 2025, though growth is slowing. EVs are outperforming hybrids in quote growth at 14.01% compared to 13.78%, and outpacing regular vehicles, which are in decline.
Across the insurance industry, car insurance costs have been trending upwards due to modern vehicles with advanced technology, labour shortages and cars featuring more replacement parts, Jackson said.
Regional differences also affect EV adoption. “We’re seeing clear differences across states when it comes to EV readiness,” said Scott Nargar, Hyundai’s senior manager of future mobility and government relations. “For example, NSW residents are the most likely to consider an EV next (26%), while Queenslanders (15%) and Victorians (22%) are more hesitant, largely due to cost concerns.”
Younger generations are leading adoption interest, with 32% of millennials and 27% of Gen Z open to EVs as their next vehicle. However, 61% of Australians overall still prefer petrol or diesel vehicles.
“The good news is, the more people get to experience EVs, the more confident they become in these vehicles,” Jackson said.
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