More than 54% of Australians are considering a switch to an electric or hybrid car amid rising fuel costs, but Compare the Market is warning motorists to avoid being stung with higher insurance premiums by taking time to shop around.
Almost 7% of drivers polled said expensive fuel had prompted them to consider an EV for the first time, while around a quarter (24.9%) said rising costs had further confirmed their interest to switch. A further 22.5% said they would consider upgrading to a fuel-efficient hybrid model.
But the latest figures from Compare the Market’s electric vehicle insurance index suggest new EV owners could be hit with pricing trouble from a different direction: insurance.
The cost to comprehensively insure a full battery-electric vehicle has climbed 10.2% on average, while hybrid models have experienced a 6.6% average increase over the past 12 months.
The bi-annual study covering 11 popular insurers and six underwriters found the average cost to insure a full EV was around $2,300 and hybrids were about $1,700.
The findings come as pure EV sales soar. More electrified vehicles were delivered – including hybrids, plug-in hybrids, and full electric combined – than petrol-powered cars last month.
Average quoted BEV insurance premiums
| Make & Model | March 2025 | March 2026 | YoY DIFFERENCE (%) |
| Tesla Model Y RWD | $3,039 | $3,203 | +$164 (5%) |
| Tesla Model 3 RWD | $3,257 | $3,356 | +$99 (3%) |
| MG 4 Excite 51 | $1,592 | $1,524 | -$68 (4%) |
| Kia EV5 Standard Range | $1,781 | $1,921 | +$140 (7%) |
| BYD Sealion 7 Premium | $1,786 | $1,795 | +$9 (0.5%) |
| BYD Dolphin Essential | $1,437 | $1,578 | +$141 (9%) |
| Zeekr X RWD | $1,831 | $2,271 | +$440 (19%) |
| Xpeng G6 Standard Range | $1,610 | $2,135 | +$525 (24%) |
| Toyota bZ4X 2WD | $1,601 | $2,122 | +$521 (24%) |
| BMW iX1 eDrive20 | $2,777 | $3,152 | +$375 (11%) |
| ALL MODEL AVERAGE | $2,071 | $2,306 | +$235 (10%) |