Electric vehicles (EVs) do not only differ from internal combustion engine (ICE) vehicles in the way they are powered and serviced, but also in the way they are viewed by insurance companies.

PPS Short Term Insurance technical operational manager Hugo du Preez (HP) explains to Engineering News Online (EN) why vehicle owners can expect to pay more to insure their EV than a comparable ICE vehicle.

EN: Hugo, is it really more expensive to insure an EV than a normal ICE car in South Africa?HP: Yes. Some prospective EV owners are surprised by the higher insurance quotes. These are not driven by profit, but by factors still stabilising in the local market.

EN: How much more expensive is it to insure an EV, on average, would you say?
HP: The cost of insuring an EV in South Africa can vary depending on the insurer and model, but premiums are often higher, sometimes by around 10% to 30%.

EN: Why is this the case?
HP: The higher cost of insuring and repairing EVs comes down to a few key factors. Unlike petrol or diesel cars, many EV parts are modular and sealed, meaning they’re replaced rather than repaired. This can speed up the process, but also makes it more expensive.

Repairs must also follow strict safety protocols because of the lithium-ion batteries, which need to be handled, stored and even towed with special care.

Accredited workshops and trained technicians are also still limited in South Africa, so repair times can be longer and labour costs higher.

Manufacturers also often require full safety checks or even battery replacements after an accident to protect drivers, passengers, and repairers.

And, because EVs are still new to the local market, insurers are cautious as there is not enough long-term claims data yet to price the risk with complete confidence.

All of these factors combine to make EV insurance and repair costs higher for now.

EN: Does this higher rate include hybrids and plug-in hybrid vehicles (PHEVs) as well?
HP: Hybrids and PHEVs usually fall somewhere in the middle – they tend to cost a bit more to insure than petrol or diesel cars, but often less than EVs. That is because they combine both traditional and electric components, which makes them a little more complex to repair.

Since they also rely on batteries and electric systems, they need to be handled by trained technicians in accredited workshops. And, if there is an accident, those electrical systems have to be checked carefully to make sure the car is safe for both the driver and the repair team.

EN: How long do you think this will remain the situation going forward?
HP: This situation is expected to improve over time. As more EVs enter the South African market, insurers will have better data to assess risk, while repair networks and access to specialist parts and technicians will continue to grow.

With manufacturers, regulators and insurers working together to streamline processes, owning and maintaining an EV should become more efficient and affordable.

Right now, the higher premiums simply reflect a market that is still developing, not a long-term barrier to EV adoption. As the industry matures and more local experience builds up, insurance costs are likely to stabilise.

In time, EV cover should become more competitive and accessible, supporting South Africa’s broader shift toward sustainable, smart mobility.