Tesla has partnered with Zurich Australia to enhance insurance options for electric vehicle (EV) owners in the country, making Zurich the preferred insurance provider for Tesla in Australia.

Thom Drew, Tesla's country director, stated that this collaboration aims to boost Australians' confidence in switching to electric vehicles.

Zurich Australia's CEO, Justin Delaney, emphasized the importance of providing accessible insurance to support the growing EV market, recognizing the environmental impact driving demand.

This initiative comes in response to criticism regarding the high costs of electric vehicle insurance policies in Australia.

Chris Jones, president of the Australian Electric Vehicle Association, noted that high insurance costs are primarily due to providers being risk-averse and lacking sufficient EV data.

The Insurance Council of Australia reported that electric vehicles generally cost more to insure than traditional vehicles due to higher parts costs and repair complexities.

A study revealed that while the overall cost of running an electric vehicle is cheaper, insurance for EVs is about $600 more expensive annually compared to petrol vehicles.

Jones encouraged consumers to compare insurance options, predicting that current high premiums will decrease as the EV market grows and more data becomes available.

The partnership allows Tesla owners to access insurance options directly through the Tesla app, similar to services already implemented in some US states since 2019.

The InsureMyTesla insurance packages will cover repairs related to batteries, glass, and charging equipment, utilizing Tesla's accredited repair network.

In the first half of the year, Australians purchased over 50,000 new electric vehicles, accounting for nearly 8% of all new car sales, highlighting the growing interest in EVs.

Tesla continues to dominate the electric vehicle market in Australia, capturing almost half of the country's EV sales, but faces increasing competition from brands like BYD and Hyundai.