EV demand continues to climb as Australians seek relief from fuel price uncertainty: NRMA Insurance

EV demand continues to climb as Australians seek relief from fuel price uncertainty: NRMA Insurance

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New data from NRMA Insurance shows Australians continue to explore electric vehicle (EVs) adoption, with insurance quote requests up 95% this year and 60% compared to May 2025.

NRMA Insurance's Head of Automotive Research Shawn Ticehurst said a range of factors are driving the shift towards EVs.

"Fuel price volatility linked to geopolitical tensions in the Middle East highlighted both the cost pressures and petrol supply uncertainty associated with traditional vehicles.

"At the same time, the EV market has matured significantly. There are now over 100 different models available across every major price tier, making EVs a viable option for more Australians than ever before. Together, these dynamics are flowing through to insurance demand."

At NRMA Insurance we've seen quotes for EV insurance effectively double in 2026, reflecting a clear structural shift in how Australians are now thinking about EVs.

Shawn Ticehurst

NRMA Insurance's Head of Automotive Research

EV momentum builds across states as buying preferences shift

EV insurance quote requests rose 114% in South Australia in May and 67% in New South Wales year-on-year.

Mr Ticehurst said the shift towards EVs is becoming increasingly clear in both demand and vehicle choice.

"As Australians look more closely at the ongoing costs of running a car, it's interesting to see traditional favourites like large diesel utes starting to lose some appeal as fuel prices bite," Mr Ticehurst said.

This trend is reflected in the Federal Chamber of Automotive Industries (FCAI) data, with many of Australia's top-selling diesel utes and large SUVs recording year-on-year declines in sales.

Growing confidence in the used EV market

General Manager Motor Vehicles at Pickles, Australia's largest online vehicle auction platform, Chris Shaw said: "Following a strong uplift in March - including a 163% surge in EV-related searches and peak auction clearance rates of 100% - the used EV market continued to show sustained buyer demand through April and May.

"In May, EV-related searches on Pickles remained approximately 46% higher than February levels, while EV clearance rates continued to sit around the 70% mark despite increased market supply."

Pickles data also showed the second-hand EV market is rapidly diversifying, with more than 60 different models sold in the past six months.

Mr Ticehurst said it's encouraging to see growing confidence in the second-hand market, explaining that: "The introduction of independent battery testing, alongside increased awareness of battery safety and improved longevity, is helping to remove uncertainty for buyers."

The trend marks a notable shift from two years ago when NRMA Insurance's Changing Gears report found only 20% of Australians planning to buy a car in the next five years were considering an EV, with upfront costs, range anxiety and charging times key barriers.

IAG is the country's largest general insurer with brands including NRMA Insurance, RACQ, RACV, WFI, CGU and ROLLiN'. EVs make up around 2% of IAG's motor policies, with expectations the share will rise to 10% by 2030 as adoption increases.

Of the battery EVs insured by IAG, Teslas represent 60%, but there is rapid growth among other brands including BYD, MG, Hyundai and BMW.  

CSIRO modelling suggests that by 2050, most vehicles in Australia will be electric.