EV insurance quote requests jump 72 per cent in September as electric cars top petrol sales again
Insurance Business (insurancebusinessmag.com) reported that NRMA Insurance recorded a 72 per cent year-on-year rise in EV insurance quote requests in September, as battery-electric vehicles took 24.2 per cent of new-car sales and outsold petrol for a second straight month, according to FCAI data.
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Quote demand spikes as EV sales hit one in four
Electric vehicle insurance demand is climbing sharply alongside record market share. NRMA Insurance, Australia's largest motor insurer, recorded a 72 per cent year-on-year jump in EV insurance quote requests in September, a figure reported by Insurance Business. According to the insurer's data cited by the publication, EV quote requests rose 80 per cent across the first nine months of 2026 compared with the same period a year earlier. Quote requests indicate customer interest rather than completed vehicle sales, but they track a market that has shifted markedly: Federal Chamber of Automotive Industries (FCAI) data showed battery EVs accounted for 24.2 per cent of new-car sales in September, outselling petrol cars for the second consecutive month, with share more than doubled from 11.3 per cent in September 2025 while petrol sales fell 36.2 per cent year on year. 12
FCAI acting chief executive Dianne O'Hara said Australian motorists are "embracing a broader range of powertrains", according to Insurance Business. The September milestone extends a steady climb through 2026: FCAI and Electric Vehicle Council figures cited by the publication showed EVs at 11.8 per cent of new-vehicle registrations in February (7,715 units of more than 90,000 deliveries), 14.6 per cent in March versus 7.5 per cent in March 2025, and pure-EV sales up roughly 89 per cent year on year that month, when combined electrified deliveries outpaced petrol car sales for the first time. 1345
A year of accelerating quote activity
The September figure is the latest in a series of rising readings from the insurer. Insurance Business reported NRMA Insurance data showing EV quote requests up 42 per cent in March 2026 versus February and 81 per cent year on year, with New South Wales, Queensland and South Australia recording the largest changes. April quote volumes more than doubled year on year, up 121 per cent, and by May the insurer reported a 95 per cent year-to-date rise and a 60 per cent increase versus May 2025, with South Australia up 114 per cent and New South Wales up 67 per cent year on year in that month. 345
Shawn Ticehurst, head of automotive research at NRMA Insurance, attributed the demand to fuel price volatility linked to the Middle East and to a maturing EV market. "There are now over 100 different models available across every major price tier, making EVs a viable option for more Australians than ever before," he told Insurance Business, adding that quote trends suggested drivers were testing their exposure to fuel price volatility rather than reacting only to short-term pump prices. His colleague David Wilkes, executive manager of motor repair supply chain, told the publication the energy crisis had pushed diesel toward $3 a litre in some capital cities and that improved charging networks, lower running costs and wider model choice were making EVs increasingly attractive. 135
The premium gap persists
Insurance pricing has not moved in buyers' favour at the same pace as demand. CHOICE analysed more than 16,000 EV comprehensive quotes and over 36,000 petrol-vehicle quotes collected in January 2026 and found EV owners pay an average of $2,545 a year versus $1,702 for petrol vehicles, as reported by Insurance Business. An April 2026 analysis by actuarial firm Taylor Fry, also cited by the publication, found EV premiums ranged from parity to 39 per cent above comparable petrol models depending on insurer and vehicle, and showed a wider spread of EV quotes: a $900 gap between the cheapest and most expensive quote for a BYD Atto 3 against $500 for a similarly valued Mazda CX-30. 12
Compare the Market's electric vehicle insurance index, based on quotes for 10 battery-electric and 10 hybrid or plug-in hybrid models across 11 insurers and six underwriters, found average BEV comprehensive premiums rose 10.2 per cent in the 12 months to March 2026 to about $2,300, while hybrid and plug-in hybrid averages rose 6.6 per cent to around $1,700. Economic director David Koch told Insurance Business that labour and parts costs, battery replacement expenses and specialised repair training continue to push premiums higher, and that the expected stabilisation as more data emerges has not yet occurred. 45
Repair costs underpin the pricing
The premium differences reflect claims-side pressures documented by the Insurance Council of Australia in its Motor Insurance Policy Paper, published in March 2025. Insurance Business reported that the paper noted EV repairs require specialised parts, diagnostic tools and trained technicians, that batteries, sensors and advanced onboard systems can be expensive to repair or replace, and that the limited number of workshops servicing EVs drives up costs. Across the broader motor sector, the paper found repair costs had risen 26 per cent since 2022 and make up roughly 60 per cent of total claims costs. 12
NRMA Insurance said those pressures are easing as scale builds. Ticehurst told Insurance Business that while longer repair times and occasional parts delays still occur, "these issues are reducing as the industry gains scale and repairers become more skilled", and that the insurer is working with manufacturers to understand EV repair requirements and upskill its repair network. On the used market, Pickles general manager motor vehicles Chris Shaw told the publication a 163 per cent surge in EV-related searches in March was followed by clearance rates peaking at 100 per cent, with May searches about 46 per cent above February levels and more than 60 EV models sold through the platform in six months. 135
Consumer confidence and the road to 2030
Underlying sentiment has shifted markedly. NRMA Insurance's Changing Gears: Closing the Confidence Gap report, conducted by Ipsos with a nationally representative survey of about 2,000 Australians, found the share actively considering a battery EV rose from 20 per cent in the survey's first wave in 2024 to 31 per cent in 2026, with just 17 per cent ruling out an EV altogether, according to Insurance Business. Concerns persist, however: 60 per cent of respondents worried about battery health and longevity, 56 per cent about driving range, 54 per cent about charging time and 52 per cent about battery fire risk. "Some of the concerns we see around access to charging and battery health don't reflect the reality of modern EVs, but that doesn't mean they should be ignored," Wilkes told the publication. 12
The insurer's own book illustrates how early the transition remains. Insurance Business reported EVs account for about 3 per cent of NRMA Insurance motor policies, within an IAG group total of roughly 2 per cent across its brands including RACQ, RACV, WFI, CGU and ROLLiN', with Teslas making up about 60 per cent of IAG's insured battery-electric vehicles. IAG expects the share to reach around 10 per cent by 2030 if current adoption trends continue, in a national fleet estimated at about 500,000 battery EVs, or roughly 3 per cent of vehicles on Australian roads. Regulatory and forecasting context points the same way: the New Vehicle Efficiency Standard, effective January 1, 2025, requires manufacturers to meet average CO2 targets for new vehicles supplied to the Australian market, and CSIRO forecasts 97 per cent of light passenger vehicles will be electric by 2050 under a rapid decarbonisation pathway. 12345
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