NRMA Insurance is reporting increased electric vehicle activity in its motor portfolio, with internal figures indicating quote volumes more than doubled year on year as Australians respond to fuel price volatility and a broader range of EV models. The insurer said EV insurance quote requests in April 2026 were up 121% compared with April 2025, suggesting more motorists are assessing the cost implications of moving away from internal combustion engine vehicles.
“With more than 100 EV models now available across every major price tier, EVs are increasingly being seen as a viable option to help reduce running costs and provide greater certainty over day-to-day transport expenses,” NRMA Insurance head of automotive research Shawn Ticehurst said. According to NRMA Insurance, EV interest is expected to remain solid through 2026 as customers balance higher upfront vehicle prices against potential savings on fuel and maintenance over the ownership period.
Demand is also emerging in the used vehicle market. Data from the Australian Automotive Dealer Association (AADA) shows sales of second-hand EVs in March were about 126% higher than the previous monthly average, indicating more Australians are purchasing used electric models rather than only considering new vehicles. “The growth we’re seeing in second-hand EVs is particularly pleasing. As more vehicles enter the used car market, it makes EV ownership accessible to a broader range of Australians,” Ticehurst said.
Ticehurst said current conditions differ from those outlined in NRMA Insurance’s 2024 “Changing Gears” report, which recommended standardised battery testing to address consumer concerns and assist the development of the early-stage second-hand EV market. New-vehicle data points to similar trends. Figures from the Federal Chamber of Automotive Industries (FCAI) and the Electric Vehicle Council (EVC) show EVs accounted for 14.6% of new vehicle sales in March 2026, compared with 7.5% in March 2025. The shift suggests EVs are forming a larger share of the national fleet as model choice and supply increase.
As EV penetration grows, insurers and repair networks are continuing to adapt to the technology’s repair profile and claims characteristics. NRMA Insurance said customer views on EV repair costs and insurability are gradually changing as more vehicles proceed through assessment and repair. “Concerns about expensive EV repairs and insurance are beginning to shift. While we still see longer repair times and occasional parts delays in some cases, these issues are easing as the industry scales and repair capability improves. At NRMA Insurance, we’re working with car manufacturers to better understand EV repair requirements and upskill our repair network to support this growing customer base,” Ticehurst said.
Parent company IAG – whose brands include NRMA Insurance, RACQ, RACV, WFI, CGU and ROLLiN’ – estimates EVs currently account for about 2% of its motor policies. It forecasts this share could grow to around 10% by 2030 if adoption continues on present trends. Within IAG’s battery-electric book, Teslas make up roughly 60% of insured vehicles, with additional growth coming from brands such as BYD, MG, Hyundai, and BMW. CSIRO modelling indicates that by 2050 most vehicles in Australia are expected to be electric, which would alter the composition of motor risks managed by insurers over time.
Parallel to the increase in EV volumes, recent research indicates that comprehensive premiums for EVs and hybrids have risen over the past year. Compare the Market’s latest electric vehicle insurance index reports that the average quoted comprehensive premium for a battery-electric vehicle (BEV) increased 10.2% between March 2025 and March 2026, to about $2,300 a year. For hybrid and plug-in hybrid (HEV/PHEV) models, the average quoted premium rose 6.6% over the same period, to around $1,700.
The biannual index is based on quotes for 10 BEV models and 10 HEV/PHEV models across 11 insurers and six underwriters. The methodology assumes a 34‑year‑old male driver in Alderley, Brisbane (4051), with a clean driving record, market value cover, a targeted $900 excess, up to 15,000 kilometres of annual private and commuting use, and garaged parking. Vehicles are assumed to be white, without modifications or pre-existing damage.
Results varied by vehicle. Some established BEV models recorded low single-digit percentage movements in average quoted premiums, while several other models experienced increases above 20% between March 2025 and March 2026. Among hybrids, a small number of models saw modest reductions, but most recorded premium increases in the mid‑single to high‑teens percentage range. Compare the Market noted that separate research continues to show EVs are generally more expensive to insure than comparable petrol and diesel vehicles, reflecting battery-related repair costs and the need for specialist training and equipment.
Consumer research commissioned by Compare the Market points to fuel prices as a key driver of interest in EVs and hybrids. In a nationally representative survey of 908 Australians in March 2025, more than 54% of respondents said they were considering an electric or hybrid car. Almost 7% said high fuel prices had led them to consider an EV for the first time, about 24.9% said rising fuel costs had reinforced an existing intention to switch, and 22.5% indicated they would consider a fuel-efficient hybrid.
