Why this photo of a car insurance quote has this Tesla driver outraged: ‘Absolute joke’
It may become cheaper to buy an electric vehicle (EV), but an insurance quote for his Tesla has been labeled an ‘absolute joke’ by one director.
The motorist recently shared a photo on social media showing that it costs a hefty $4,000 more to insure his electric car than his 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 was able to insure his gas-powered Kia for just $900.
“Look at the price difference between Tesla with a lease and my Kia, which is fully owned,” he said.
It may be getting cheaper to buy an electric vehicle (EV), but an insurance quote has led a Tesla driver to call the high cost an ‘absolute joke’
‘What an absolute joke.’
Insurance is the second largest current expense for Australian EV owners.
According to the Insurance Council of Australia (ICA), the main insurance body, there are a few reasons why EV owners are paying higher premiums.
A spokesperson said EVs have more complex systems and components, explaining that repairing damaged EVs required parts to be imported to Australia.
“The cost of these parts and the limited number of qualified service centers and technicians contribute to the higher cost of insurance premiums for electric cars than internal combustion vehicles,” the spokesperson said. Yahoo.
The EV owner recently shared a photo on social media expressing his surprise that it costs $4,000 more to insure his EV than his combustion engine cars.
According to the Insurance Council of Australia (ICA), the main insurance body, there are a few reasons why EV owners are paying higher premiums
Another major factor was the expensive cost of replacing the battery, which can amount to up to 40 percent of the car’s total value.
They also require special disposal equipment, along with disposal and recycling methods, and without a local network, most batteries must be sent back abroad.
The ICA noted that factors such as the driver’s age and history, storage, make and model of the vehicle would play a role in the incentives, as well as whether the car is leased.
The price of some EVs has recently fallen by as much as $20,000, including the Tesla Model Y which plummeted from $72,000 to $55,000.
The price of some EVs has fallen 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 increased competition between manufacturers was fueling the price war.
“It’s all been fueled by Chinese brands that have started bringing much cheaper electric vehicles to the market than we’re used to,” he said.
“We’ve seen brands like Peugeot get around $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 it.”
China’s BYD sold more cars worldwide than Tesla in 2023.
In fact, the situation for Tesla has become so dire that the company has been forced to drastically cut its prices.
CarExpert.com founder Paul Maric said increased competition between manufacturers was fueling the EV price war
Elon Musk’s electric vehicles were once pre-sold before they even entered Australia, but Tesla sales fell by two-thirds in April this year compared to the same period last year.
2,000 Teslas arrive at Port Melbourne every month, but Peter Anderson of the Victorian Transport Association has warned very few are leaving.
‘Suddenly we have a huge backlog of Teslas that are not moving. They just stopped moving,” he told Seven News last month.
‘Teslas usually come into this country pre-sold, these cars don’t. They are here waiting for buyers.’
It comes after US company ChargePoint closed its 46 charging stations around NSW, Victoria and Queensland on February 1.
