When it comes to choosing between electric and petrol vehicles, insurance costs are often overlooked in the decision-making process. But here's what most drivers don't realize: electric car insurance can cost 15-23% more than traditional petrol car insurance in many markets. Before you make your next automotive purchase, here are seven eye-opening facts that reveal the real insurance story between EVs and petrol cars.

1. Repair Costs Tell the Real Story

EVs cost 27% more to repair on average than their petrol counterparts. This isn't just a small difference – it's a significant factor that directly impacts your insurance premiums. The specialized components in electric vehicles, from battery packs to electric motors, require technicians with specific training and expensive diagnostic equipment.

Consider this: while a petrol engine repair might require a standard mechanic toolset, EV repairs often demand equipment costing tens of thousands of dollars. Insurance companies factor these higher repair costs directly into your premiums, making electric car insurance inherently more expensive.

2. The Battery: A $15,000 Insurance Wildcard

Here's a jaw-dropper: electric car battery replacements can cost between $5,000 to $15,000, and they're often not covered under standard warranties after 8-10 years. Unlike petrol engines where you might replace a $200 alternator, EV battery issues can result in five-figure repair bills that insurers must cover.

This massive cost differential explains why insurance companies charge higher premiums for electric vehicles. It's not just about the car being "different" – it's about managing potential claims that could cost significantly more than traditional repairs.

3. Theft Rates: The Surprising Safety Factor

Contrary to popular belief, petrol cars are actually targeted by thieves 34% more frequently than electric vehicles. This might seem counterintuitive, but it's simple math for criminals: traditional cars are easier to steal and resell because:

• Parts are readily available and cheaper
• Mechanic expertise is widespread
• There are fewer technological barriers to overcome

This lower theft rate could actually work in your favor for insurance costs, despite the higher base premiums for EVs.

4. Depreciation Protection: EVs Hold Value Better

Here's where electric cars shine in the insurance world: EVs depreciate 18% slower than petrol vehicles in the first three years. This means your comprehensive insurance coverage (which pays out the current market value if your car is written off) will be worth more if you have an electric vehicle.

For insurance purposes, this slower depreciation rate can offset some of the higher repair costs, especially for newer vehicles.

5. The Accident Factor: Fewer Collisions, Higher Costs

Electric car drivers are involved in 8% fewer accidents than petrol car drivers, according to recent studies. However, when accidents do occur, the average claim cost is 21% higher. This creates a fascinating insurance paradox:

• Lower frequency of claims
• Higher cost per claim
• Similar overall risk profile for insurers

Insurance companies compensate for these higher per-incident costs through elevated premiums, even though you might be a safer driver.

6. Charging Station Claims: The Hidden Insurance Cost

43% of EV owners have filed insurance claims related to charging equipment or infrastructure – a category that doesn't exist for petrol car owners. This includes:

• Home charging station installations and damage
• Public charging station malfunctions
• Cable and connector replacements
• Electrical system upgrades

These unique claim categories contribute to higher insurance costs for EV owners, as insurers must account for these additional risk factors.

7. Geographic Premium Variations: Location Matters More Than You Think

Electric car insurance costs vary dramatically by location – up to 31% more in some states versus others. Interestingly, this geographic variation is more pronounced for EVs than petrol cars (which typically vary by 18% max).

Areas with:

• Limited EV repair facilities
• Higher theft rates
• Extreme weather conditions
• Lower charging infrastructure

All see significantly higher insurance premiums for electric vehicles, making location a crucial factor in your insurance costs.

Making the Right Choice

While electric car insurance is generally more expensive, the gap is narrowing as repair networks expand and technicians become more skilled. The key is understanding that you're not just paying for insurance – you're paying for the specialized expertise and equipment needed to properly service your electric vehicle.

Money-saving tip: Shop around specifically for EV insurance policies, as some providers offer better rates for electric vehicles than others. The 15-23% premium difference can often be reduced to 8-12% with the right insurer.

As electric vehicles become mainstream and repair costs decrease, expect to see insurance premiums converge. For now, factor these costs into your total cost of ownership calculation before making the switch to electric.

Ready to make the switch to electric? Don't forget to factor in these insurance costs alongside charging infrastructure, tax incentives, and fuel savings to get the complete picture of EV ownership costs.