Electric vehicles (EVs) are gradually increasing in popularity in South Africa, and as such, questions surrounding insurance and other cost of ownership come up more and more. In this article we will attempt to answer the question, what is the cost of insuring an EV in South Africa?
Related: Where can I find charging stations for electric cars in South Africa?
Having looked at some data, as of 2024, the cost of insuring electric cars in South Africa presents a nuanced picture.
Value of components
One key factor influencing insurance costs for electric vehicles is the value of the vehicle and its components. EVs typically feature advanced technologies and expensive lithium-ion batteries, making repairs and replacements considerably pricier than their conventional counterparts. Insurers, in turn, factor in these costs when calculating premiums, leading to slightly higher insurance rates for electric cars. Research by an organisation in the United Kingdom called Thatcham Research, has found that EVs are 25.5% more expensive to repair than their internal combustion-powered equivalents.
Access to approved repair companies
The current limited availability of specialised repair facilities for electric vehicles can contribute to higher insurance premiums. The scarcity of trained technicians and proprietary parts may prolong repair times, impacting insurers' risk assessments and subsequently affecting premium rates. The same survey from Thatcham Research found that EVs take 14% longer to repair.
Popularity
It is important to note that the insurance landscape is dynamic, and as the market for electric cars expands, competition among insurers may intensify. This could potentially drive premiums down as companies vie for a larger share of the electric vehicle insurance market.
What is the cost?
As with all insurance, an exact amount will be unique to the insured's risk profile, however, if we consider a comparison whereby the same individual opts to insure an EV versus an ICE vehicle of similar value, based on the date we have seen, the EV will be more expensive to insure purely based on repair time and cost.
