QBE has outlined key risk factors associated with electric vehicles (EVs) in Australia, pointing to implications for insurers, brokers, and commercial property stakeholders as EV use increases.
EVs accounted for 9.5% of new car sales in Australia in 2024, a modest rise from the previous year.
Although demand for EVs remains steady, broader uptake is being influenced by practical concerns, including infrastructure gaps, affordability, and vehicle servicing issues.
According to a 2024 EY report, global sales growth slowed from 37% in 2022 to 29.7% in 2023, with infrastructure shortfalls cited as a key constraint.
QBE noted that one of the most pressing issues facing both consumers and underwriters is the uneven rollout of charging stations. A 2024 survey by YouGov reported that 71% of Australian respondents considered charging facilities in their area to be insufficient.
While Australians typically drive relatively short distances – averaging 40 kilometres daily – the lack of reliable charging networks remains a barrier, particularly in remote or regional locations.
By mid-2024, over 1,000 high-capacity charging sites had been installed nationwide, but analysts suggest the network still falls short of user expectations.
The EY report cited by QBE noted that access to charging must take priority over incentives to purchase. Consumers need confidence that infrastructure can support their travel needs.
As EV adoption increases, insurers are monitoring an evolving risk landscape. Lithium-ion batteries present a particular fire hazard, especially when charging in enclosed spaces like car parks. Fire risks associated with EVs are distinct due to the batteries’ potential to reignite after suppression.
Commercial properties such as shopping centres, workplaces, and multi-residential buildings are beginning to install charging equipment. These developments introduce new liability considerations, especially for underwriters assessing business interruption and property damage exposure.
QBE supports industry resources like EV Fire Safe, backed by the Department of Defence, which offer guidance on risk identification and response planning.
EVs and their charging systems are heavily reliant on digital infrastructure, introducing exposure to cyberattacks. Poor encryption, limited network segregation, and unsecured internet connections leave systems vulnerable.
At the same time, insurers are encouraging risk assessments for theft or vandalism at public or commercial charging locations, recommending strategic placement and secure lighting.
Installation must also comply with Australian electrical safety standards. Improper installation can not only void warranties but create further risk for property owners.
Data collected in 2024 showed that EVs can cost approximately 20% more to repair than traditional petrol-powered vehicles. These costs stem from limited parts availability and the need for specialised knowledge and tools.
The Insurance Council of Australia estimates that parts and labour make up 60% of claims expenses – a figure likely to rise with EV market penetration.
According to NRMA Insurance, a shortage of certified technicians remains a barrier to servicing the growing EV fleet. Only 10% of automotive repair professionals were qualified to work on EVs as of 2023.
Recent analysis by Compare the Market found that EV owners pay higher average insurance premiums than those driving hybrids.
As of March 2025, battery-electric vehicles attracted an average premium of $2,134, while hybrid and plug-in models averaged $1,650. The Tesla Model 3 and Model Y were among the highest, with premiums exceeding $3,000.
These disparities are attributed to higher repair complexity, technology costs, and limited service options, all of which contribute to underwriting challenges.
With more businesses integrating EVs into their fleets, QBE highlighted the importance of driver training as a risk management measure.
Drivers need to understand unique EV features such as instant torque, regenerative braking, and the absence of traditional gear systems.
Training programs should address driving efficiency, speed control, braking patterns, and hazard anticipation.
QBE also recommends that any incident that may impact an EV’s battery should be investigated promptly, given the elevated fire risk associated with battery damage.
