It may be getting cheaper to buy an electric vehicle (EV), but an insurance quote for a driver’s Tesla has been called an “absolute joke.”
The motorist recently shared a photo on social media revealing that it costs $4,000 more to insure his electric vehicle than his internal combustion engine cars.
Screenshots showed that comprehensive insurance for a Tesla would cost between $5,073 and $5,175 based on two quotes from different insurers, but you could insure your gasoline-powered Kia for just $900.
“Take a look at the price difference between a leased Tesla and my outright Kia,” he said.
“What an absolute joke.”
It may be getting cheaper to buy an electric vehicle (EV), but an insurance quote has left one Tesla driver calling the high costs an “absolute joke”.
Insurance is the second largest ongoing expense for electric vehicle owners in Australia.
According to the Insurance Council of Australia (ICA), the peak insurance body, there are a few reasons why electric vehicle owners pay higher premiums.
A spokesperson said electric vehicles have more complex systems and components and explained that repairing damaged electric vehicles required importing parts to Australia.
“The cost of these parts and the limited number of service centers and qualified technicians contribute to insurance premiums for electric vehicles being more expensive than those for internal combustion vehicles,” the spokesperson said. yahoo.
An electric vehicle owner recently shared a photo on social media, expressing his shock that insuring his electric vehicle costs $4,000 more than his internal combustion engine cars.
According to the Insurance Council of Australia (ICA), the peak insurance body, there are a few reasons why electric vehicle owners pay higher premiums.
Another key factor was the high battery replacement costs, which can represent up to 40 percent of the total value of the vehicle.
They also require specialized extraction equipment, along with disposal and recycling methods, and without a local network, most batteries must be returned abroad.
The ICA noted that factors such as the driver’s age and history, storage, make and model of the vehicle would influence premiums, as well as whether the car is leased.
The price of some electric vehicles has recently dropped as low as $20,000, including the Tesla Model Y, which plummeted from $72,000 to $55,000.
The price of some electric vehicles has dropped as much as $20,000, including the Tesla Model Y, which plummeted from $72,000 to $55,000.
CarExpert.com founder Paul Maric said increased competition between manufacturers was driving the price war.
“Everything has been driven by Chinese brands that have begun to introduce much more affordable electric vehicles than what we are used to,” he said.
“We’ve seen brands like Peugeot take around $20,000 off some of their electric cars, which is unheard of and also gives you an idea of how much margin they’ve actually 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 slash its prices.
CarExpert.com founder Paul Maric said increased competition among manufacturers was driving the electric vehicle price war.
Elon Musk’s electric vehicles were once pre-sold before even entering Australia, but Tesla sales fell by two-thirds in April this year compared to the same period last year.
Every month, 2,000 Teslas arrive at the Port of Melbourne, but Peter Anderson of the Victorian Transport Association has warned that very few are leaving.
‘Suddenly we have a huge backlog of Teslas that aren’t moving. They just stopped moving,” he told Seven News last month.
Teslas usually arrive in this country pre-sold, these cars do not. They are sitting here waiting for buyers.
It comes after US company ChargePoint closed its 46 charging stations in New South Wales, Victoria and Queensland on February 1.
