I’m buying an Electric Vehicle, is my insurance going to cost more?

Kiwis are increasingly turning to EVs, Hybrids and PHEVs (Plug-in Hybrid Electric Vehicles) as a way to reduce their fuel costs and their footprint on the planet. Whether it’s the promise of a quieter ride, the ability to do away with trips to the petrol station, or the responsive acceleration, there is a lot that sets EVs apart.

With EVs now becoming more common in New Zealand, you should be able to find an insurance option that suits you and your vehicle.

If you’re considering buying an EV, or you already own one, here are a few frequently asked questions about EV insurance.

Do all insurers cover EVs?

At Vero, we are happy to insure EVs under our current policies, but different insurers take different approaches to how they set limits and price their policies.

Although it shouldn’t be any more difficult to insure an EV over a petrol vehicle, if you’re thinking about purchasing an EV (or a hybrid or PHEV), it’s worth checking that you can get cover for the vehicle you want at your preferred insurer. If you can’t, a broker will be able to help you check your options.

Will it cost more to insure an EV?

One of the factors that influences the cost of your insurance is the value of your vehicle. EVs are often more expensive to purchase than their petrol counterparts, which could have a flow-on effect on your insurance.

However, a lot of factors make up the overall price of any car insurance policy, including where you live, your age, driving history and the value, make and model of the car – so you may find that insuring an EV is not much different than insuring a regular car.

Will the battery in my EV be covered by my policy?

While your EV’s battery should be covered if it is damaged as part of an accident, fire, or theft, it’s always good practice to read the cover you are purchasing to ensure there are no surprises in the event of a loss. At Vero, the battery in an EV is covered just the same as an engine is covered in a petrol or diesel vehicle.

It may be useful to keep in mind that EV battery failure is not normally covered by car insurance policies. This is similar to motor failures or general wear and tear in conventional vehicles, which are generally not covered by insurance.

Do I need to take out separate insurance for the charging cables and/or wall charging unit?

When taking out insurance on your EV, it’s a good idea to check that the charging pack and cables are covered as part of your policy. If you have a charging station installed in your home, it’s possible that your car insurance policy won’t cover this if it is damaged in the event of a claim.

Check with your insurance broker to see if your home, contents, or car policy will cover your charging station and accessories in the event of accidental damage, fire, or theft.

These are just a few things for you to think about if you’re insuring an EV, Hybrid or PHEV vehicle. Talking to your broker is a good idea as they can help you choose the insurance coverage that best suits you and help answer any further questions you might have.

If you don’t have an insurance broker and you’re wanting to get in touch with one, you can find a list of brokers near you via our Vero Broker Locator.