Rising Interest in Electric Vehicles
Australians are showing a growing interest in electric vehicles (EVs), with new insurance data highlighting a significant increase in the number of EV insurance quote requests. This trend is driven by fluctuating fuel prices and ongoing supply chain issues, prompting many consumers to consider the long-term benefits of electric motoring.
According to NRMA Insurance, the number of EV insurance quote requests surged by 121 per cent in April 2026 compared to the same month in the previous year. This sharp rise indicates a major shift in consumer preferences towards electric vehicles. As households continue to face unpredictable petrol costs, more drivers are evaluating the long-term savings associated with EVs over traditional fuel-based vehicles.
Shawn Ticehurst, head of automotive research at NRMA Insurance, noted that the data reflects a clear change in how Australians are assessing their transport options. He pointed out that with over 100 EV models now available across all major price tiers, electric vehicles are becoming a more viable option for reducing running costs and providing greater certainty in daily transport expenses.
Ticehurst emphasized that what was once considered a niche market is now moving into the mainstream as more consumers seek stability in their transport costs.
Growth in the Second-Hand Market
The increase in demand for electric vehicles is not limited to new cars. The second-hand EV market is also gaining momentum. Data from the Australian Automotive Dealer Association shows that sales of used electric cars rose by about 126 per cent in March, more than doubling typical monthly averages.
Ticehurst highlighted that the expansion of the used EV market is a key turning point for affordability and accessibility. He stated that as more vehicles enter the used car market, it becomes easier for a broader range of Australians to own an electric vehicle.
“This marks a notable shift from 2024 when NRMA Insurance’s Changing Gears report recommended the introduction of standardised battery testing to help address consumer concerns and boost the nascent second-hand EV market,” Ticehurst said.
Building Confidence in Electric Vehicles
Broader industry figures also indicate a growing trend in EV adoption. According to the Federal Chamber of Automotive Industries and the Electric Vehicle Council, EVs accounted for a record 14.6 per cent of all new vehicle sales in March 2026. This is nearly double the 7.5 per cent recorded the previous year.
Two years ago, a report by NRMA Insurance found that only 20 per cent of Australians planning to buy a car in the next five years were considering an EV. Upfront costs, range anxiety, and charging times were among the main barriers.
Ticehurst noted that perceptions are changing as the market matures and infrastructure improves. He mentioned that concerns about expensive EV repairs and insurance are beginning to ease. While some cases still experience longer repair times and occasional parts delays, these issues are becoming less frequent as the industry scales and repair capabilities improve.
“At NRMA Insurance, we’re working with car manufacturers to better understand EV repair requirements and upskill our repair network to support this growing customer base,” Ticehurst said.
Preparing for Future Growth
Insurance giant IAG, which includes NRMA Insurance among its brands, has seen EVs make up about 2 per cent of its motor portfolio. This figure is expected to rise to 10 per cent by 2030 as EV adoption continues to accelerate.
Tesla remains the dominant brand in the insured EV space, accounting for approximately 60 per cent of battery electric vehicles covered by IAG. Other brands such as BYD, MG, Hyundai, and BMW are also experiencing strong growth.
Long-term projections from the CSIRO suggest that the transition to electric vehicles will continue, with most vehicles on Australian roads expected to be electric by 2050.
