The electric car is the way of the future, as governments and manufacturers work together to reduce the environmental damage caused by petrol and diesel engine vehicles.
Australia has been relatively slow in adopting electric vehicles, but models like the BMW i3 and the Tesla range have started to find interest among buyers, and newcomers like the Jaguar I-Pace are also proving popular.
As another positive note, the South Australian government has confirmed it will waive registration fees and stamp duties for EVs if it is re-elected. And, while the Australian government has yet to announce purchasing and ownership incentives to match those found in some other markets, federal energy minister Josh Frydenberg has indicated change is on the horizon.
So if you’re considering purchasing a new electric car in 2018, here’s what you need to know about insuring your vehicle.
You may be wondering if there’s any difference between insurance policies for electric cars compared to those for petrol and diesel engines.
When it comes to the types of policy on offer, the answer is no. Car insurers offer third party and comprehensive insurance for both types of vehicle.
With that in mind, it’s important to approach buying insurance for an electric car in the same way you would any car. You should know the value of your vehicle, what you want to protect it against and how much your willing to pay for your policy.
Then it’s a matter of selecting which type of insurance policy is right for your car. You can find more information on that here.
For now, EVs are something of a novel idea, and with electric car numbers in Australia still low, manufacturers may not have the facilities to affordably repair your vehicle in the event of an accident.
Tesla, for example, has only six dealerships in the country. Your insurer may, therefore, charge you more to adjust for the difficulty of fixing any damage to your car or replacing any parts.
Electric cars also tend to be more expensive to buy in the first place, and your policy will increase if the value of the car is higher; no matter the government incentives provided.
As the number of electric vehicles in Australia increases, manufacturers will increase their ability to make repairs, and insurance policies will reflect that.
In the short term, you may have to fork out more for insuring your electric car, but government incentives and cheaper running costs will help to balance that expense.
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