Originally published: iTWire, 09 April 2026
More than 54%* of Australians are considering a switch to an electric or hybrid car amid rising fuel costs, but Compare the Market is urging motorists to avoid being stung with higher insurance premiums by taking time to shop around.
Almost 7% of drivers polled said expensive fuel had prompted them to consider an EV for the first time, while around a quarter (24.9%) said rising costs had further confirmed their interest to switch. A further 22.5% said they would consider upgrading to a fuel-efficient hybrid model.
But the latest figures from Compare the Market’s electric vehicle insurance index suggest new EV owners could be hit with pricing trouble from a different direction: insurance.
The cost to comprehensively insure a full battery-electric vehicle has climbed 10.2% on average, while hybrid models have experienced a 6.6% average increase over the past 12 months.
The bi-annual study covering 11 popular insurers and six underwriters found the average cost to insure a full EV was around $2,300 and hybrids were about $1,700.
The findings come as pure EV sales jumped by around 89% year-on-year in March 2026, according the Federal Chamber of Automotive Industries and the Electric Vehicle Council data. More electrified vehicles were delivered – including hybrids, plug-in hybrids, and full electric combined – than petrol-powered cars last month.
*Compare the Market commissioned Pureprofile to survey a nationally representative sample of 908 Australians in March 2025.
