Why Australians rate EVs as pricier to insure despite similar costs

Youi’s data shows that EV insurance costs can be comparable to petrol vehicles.

More than half of Australians believe electric vehicles (EVs) are the most expensive cars to insure, according to new research from insurer Youi.

The EV Data Digest, based on a survey of over 1,000 car owners, found 56% of respondents think EVs carry higher premiums, mainly due to perceptions of costly parts and advanced technology.

However, Youi’s internal data shows that EV insurance costs can be comparable to petrol vehicles.

For instance, a BYD Sealion 7 costs between $777 (A$1,196) and $1,255 (A$1,931) to insure, similar to a Toyota LandCruiser Prado at $704 (A$1,083) to $1,248 (A$1,920).

Despite these findings, only 7% of Australians currently own an EV, and just 22% say they would consider buying one next.

Confidence remains low, with 85% saying they need more information before making the switch.

Lower premiums could help change that view – 34% of respondents said cheaper insurance would make them more likely to consider an EV.

Youi said the results highlight the need for better consumer education about how EV ownership affects insurance costs, as misconceptions about pricing and coverage remain a key barrier to adoption.

($1.00 = A$1.54)