Do you want to switch to an electric car? Here’s what it could cost to insure your electric vehicle in South Africa
Volvo’s updated range of hybrid and electric cars is now on sale in South Africa.
- It could cost you more to insure an electric car in South Africa compared to a similarly priced petrol vehicle.
- If you’re under 30, expect to pay around R2,726 a month to insure a new Mini Cooper SE.
- Want something fancier? A Jaguar I-Pace could cost you around R4,995 per month for insurance.
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Automakers are rolling out thick and fast electric vehicles (EVs). We recently tried the Audi e-tron rangeand we put the Volvo XC40 P8 Refill through his steps. We also tested the Porsche Taycan several times, and we have tried the cheapest electric car in SA, the Mini Cooper SE. These cars, say what you will about range anxiety and charging times, are the ideal alternative right now if you want to avoid refueling with petrol or diesel.
Electric vehicles are growing in popularity and we regularly receive comments from readers who say they would like to switch to electric vehicles now. The price, however, puts these cars out of reach for most of us.
Still, you might be in the lucky position to go from gas guzzling to something electrified this year. Price aside, we started thinking about the cost of insuring these vehicles. Some manufacturers offer a few years of “free” comprehensive insurance when you buy one of their electric cars, but here is what it will cost on average to insure an electric vehicle in South Africa:
EV Insurance Quotes March 2022
Insurance industry insider shares more info on electric vehicle coverage
One of Naked Insurance’s co-founders, Ernest North, says he’s seen an increase in insurance quotes and policies being sold on electric cars. He explains that they consider a bunch of variables when pricing a car’s insurance premium. These include the age of the owner/driver, where you live, the cost of your vehicle, and typical parts and repair costs for the make and model you own.
“In some cases, insuring an electric car can be more expensive than insuring an ICE [internal combustion engine] car of the same value because the costs of spare parts and parts are higher. However, there may also be cases where premiums will be lower if data shows that drivers of a particular electric vehicle model have fewer accidents due to the vehicle’s safety features or because they are more careful drivers,” he explains.
2022 Jaguar I-Pace EV400 AWD (front) and 2022 BMW iX xDrive50
Growing interest in electric vehicles in South Africa
With annual sales of several dozen units, electric vehicles accounted for just 0.046% of new cars sold in South Africa in 2021. However, with soaring fuel prices and growing awareness of the environmental impact fossil fuels, more and more motorists are considering the switch from internal combustion engine (ICE) cars to electric vehicles.
For example, AutoTrader Automotive Industry Annual Report shows that South Africans conducted more than 540,000 searches for electric vehicles on its platform in 2021, up 110% from the previous year. When weighing their options, one of the questions prospective EV owners ask is how do insurance costs compare?
Read: A cost per km comparison: Insane fuel prices – are EVs really cheaper than ICE cars?
The insurance premiums in the graph in this piece reflect the risk profile of a typical 28- and 48-year-old driver, but you can get actual quotes on the Naked website or mobile app. North says every car buyer should consider the total costs of vehicle ownership when deciding whether or not to go electric.
Mini Cooper SE
“Electric cars have fewer moving parts that need to be replaced than traditional cars, so many models can be cheaper to maintain than a luxury vehicle of the same cost. And, if you have solar panels for your charger car to your home, you can reduce the running costs of powering your car to next to nothing compared to the exorbitant costs of gasoline.
We’re only at the start of the electric vehicle revolution, and people boarding now will pay an early adopter tax,” North notes.
Read: Electric cars could soon power your home – here’s how to make it happen
Audi RS e-tron GT 2022
“But we can expect to see their running costs relative to ICE cars fall rapidly, especially if the government reviews import tariffs on electric vehicles or starts imposing tougher carbon taxes on traditional cars. next two to three years, we are likely to see prices drop and more mid-range EVs hitting the local market.
The global momentum behind electric cars looks unstoppable, with global sales of battery-powered cars, light trucks and utility vehicles reaching 6.75 million units in 2021, up 108% from 2020. We believe that electric vehicles will be the wave of the future,” he concludes.
Are you planning to switch from petrol or diesel to electric? Let us know which car you’re interested in and why in the comments section.
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