The federal government has delivered its National Electric Vehicle Strategy, a crucial step in Australia’s efforts to address climate change.
For insurers, this is big news. We see the devastating impact of severe weather events on our customers and communities every year, and we support any efforts to reduce harmful vehicle emissions. The National Electric Vehicle Strategy seeks to do this by:
- Encouraging the uptake of electric vehicles (EVs)
- Boosting the supply of affordable and accessible models
- Creating the resources and infrastructure needed to support rapid growth.
So, what can Youi as an Australian insurer do to support the National Electric Vehicle Strategy? An example is the standard inclusion of roadside assistance for EV customers – something we already do with our Comprehensive car insurance policies.1 Measures such as this give Australians considering an EV purchase greater confidence, accelerating the necessary electrification process.
Driving the National Electric Vehicle Strategy
The current public perception of public EV charging stations is that they’re few and far between, leading to what has been termed range anxiety. We know this is one of the strongest barriers to EV uptake for Australians who are used to being able to fill up their ICE (internal combustion engine) vehicle easily.
The National Electric Vehicle Strategy outlines a planned national network of 117 chargers on major highways, while state and territory governments are also committing to the installation of more charging stations. It’s therefore likely that range anxiety will ease as consumer confidence grows. Until then, roadside assistance is a helpful back-up for drivers.
Car insurance for electric vehicles
Uncertainty around insurance availability and premiums is another barrier for Australians considering changing lanes to an EV.
“In recent years, customers haven’t been able to get their hands on electric cars, but that’s now changing and they have greater choice,” says Youi’s Marni Jackson, Head of Product – Vehicle. “Now EV ownership is becoming a more real possibility, customer thoughts are turning to practical aspects like car insurance.”
At Youi, we insure most EV models on the road, and are set to do the same for most models due to hit the market in the next two years.
"We've always been supportive of electric vehicles, and we’re very comfortable underwriting them,” says Tony Antonucci, Youi’s Chief Product and Distribution Officer.
“Car insurance premiums on our electric and newer ICE vehicles tend to be very similar – for insurers, the switch to electric vehicles should be an easy swap-over. It’s not the dramatic change we’re expecting with driverless cars, for example.”
Popular EV makes covered by Youi include:
Solving skills and supply issues
The ability to quickly source batteries and carry out repairs has historically caused headaches for EV owners and insurers, and these issues are addressed in the National Electric Vehicle Strategy. With the Australian Made Battery Plan, and the New Energy Apprenticeships and New Energy Skills programs working to fill supply and skills gaps, these concerns should hopefully soon be a distant memory.
The National Electric Vehicle Strategy is a major step towards a brighter future for Australia. To play our part in reaching the nation’s wider goal of achieving net zero emissions by 2050, Youi will continue to support efforts to drive the uptake of EVs – one confident customer at a time.
1 Limits and additional fees may apply. For more details, see the PDS.
