It might be getting cheaper to purchase an electric vehicle (EV) but an insurance quote for one driver’s Tesla has been branded an ‘absolute joke’.
The motorist recently shared a photo on social media which revealed it costs a hefty $4,000 more to insure his EV than his internal combustion engine cars.
Screenshots showed that comprehensive insurance for a Tesla would be between $5,073 and $5,175 based on two quotes from different insurers – but he could insure his petrol-powered Kia for just $900.
‘Take a look at the price difference between Tesla under a lease and my Kia which is owned outright,’ he said.
‘What an absolute joke.’
Insurance is the second-biggest ongoing expense for n EV owners.
According to the Insurance Council of (ICA), the peak insurance body, there are a few reasons why EV owners pay higher premiums.
A spokesperson said EVs have more complex systems and components, and explained that repairing damaged EVs required importing parts to .
‘The cost of these parts and the limited number of qualified service centres and technicians contributes to the higher cost of insurance premiums for EVs than internal combustion (IC) vehicles,’ the spokesperson told Yahoo.
Expensive battery replacement costs, which can be up to 40 per cent of the car’s total value, were another key factor.
They also require speciality removal equipment, along with disposal and recycling methods and, without a local network, most batteries need to be returned overseas.
The ICA noted factors like the driver’s age and history, storage, make and model of the vehicle would play into premiums, as well as whether the car is under lease.
The price of some EVs have recently dropped by as much as $20,000, including the Tesla Model Y which plummeted from $72,000 to $55,000.
CarExpert.com founder Paul Maric said that increased competition among manufacturers was driving the price war.
‘It’s all been spurred on by Chinese brands who have started bringing in much more affordable electric vehicles to what we’re used to,’ he said.
‘We’ve seen brands like Peugeot take like $20,000 out of some of their electric cars, which is unheard of and it also gives you an idea of how much margin they actually had built into them.’
China’s BYD sold more cars globally than Tesla in 2023.
In fact, the situation has become so dire for Tesla that the company was forced to dramatically slash its prices.
Elon Musk’s EVs were once pre-sold before even entering but Tesla’s sales were down by two thirds in April this year compared with the same time period last year.
Every month, 2,000 Teslas arrive at Port Melbourne but Peter Anderson of the Victorian Transport Association has warned very few are leaving.
‘All of a sudden we’ve got a huge backlog of Teslas that aren’t moving. They’ve just stopped moving,’ he told Seven News last month.
‘Teslas usually come into this country pre-sold, these cars aren’t. They’re sitting here waiting for buyers.’
It comes after American company ChargePoint shut down its 46 charging stations around NSW, Victoria and Queensland on February 1.