IAG has welcomed the NSW Government’s updated Electric Vehicle Strategy, saying the plan could help make electric vehicles more practical for more drivers across the state.
The strategy includes new funding commitments that will add more than 1,000 public charging plugs, address charging gaps in suburban and regional areas, and expand incentives for fleet electrification. The measures are aimed at supporting wider EV uptake among households and businesses.
IAG said the announcement comes at a time when interest in EVs is growing, especially as fuel prices remain volatile. New data from the insurer shows EV insurance quote requests rose 42% in March 2026 and were up 81% year on year.
At the same time, the broader market is also shifting. NRMA Insurance’s 2024 Changing Gears report identified high upfront costs and range anxiety as major barriers to EV uptake. Since then, more than 100 EV models have become available across major price tiers, confidence in charging infrastructure has improved, and the second-hand EV market has started to grow.
“It’s clear consumer sentiment towards EVs is shifting. We are 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,” IAG head of automotive research Shawn Ticehurst said.
This shift is already showing up in IAG’s portfolio. EVs currently make up about 2% of its motor portfolio, but that figure is expected to rise to 10% by 2030 as uptake continues.
Within that mix, Teslas account for 60% of the EVs insured by IAG, while brands such as BYD, MG, Kia and BMW are also gaining ground.
