Clearing the air: debunking common EV myths

Replacing an EV battery is considered an expensive and daunting task. While batteries can be expensive, most EV manufacturers design the battery packs so they can outlast the journey of the vehicle. After 10+ years, some older EV models like the Mitsubishi MiEV are actually still driving around our cities on their original battery packs.

Tesla’s 2022 Impact Report (PDF, 35.2 MB) revealed that (320,000km). If you’re only driving 12,000km a year, your EV’s battery could last up to 26 years. Even after 26 years, your battery could still be delivering up to 88% of its original capacity.

Another recent study highlights that battery costs could half by 2030. So, in the unlikely event that your battery does need to be replaced, it’d still be cheaper than when your car was new.

Many manufacturers in Australia, such as Tesla, offer an 8-year warranty on EV battery packs. This warranty also covers the drive unit and is more than what most manufacturers offer on engines of petrol or diesel cars.

Another popular EV myth is that there aren’t enough charging stations, making them impractical for drivers.

For many EV owners, most of their charging is actually done at home. It’s the most convenient way to charge your car.

When on the go, the number of fast charging stations is rapidly increasing. Data released by the federal government showed that EV fast-charging sites doubled in 2023.

To help out, Tesla also opened many of their muti-stall reliable fast-charging stations to non-Tesla EVs. This allows drivers to charge at hundreds of new charging points that previously were only available to Tesla owners. So, if you’re worried about taking your EV on a road trip, you can now find plenty of charging stations on your route.

With new EV models being released every year, there are ongoing improvements in how far they can travel on a single charge. Many of the popular EV models for sale in Australia can now go further than 300km on a single charge.

According to the ABS, an average vehicle drives 12,100km per year, which is around 233km per week. This means that typical drivers commuting to work and back can easily do so on a single charge in any modern EV on the market.

With the number of fast-chargers on the rise and the distance between fast-chargers set to come down, owning an EV is more convenient than having to fill up at a petrol station.

Some people think EVs are bad for the environment since they’re charged using power plants that run on coal.

In reality, power plants using coal are on the decline with a recent study by the University of NSW suggesting that coal will vanish from power plants by 2038.

Many EV drivers can also charge during the day at home or work when the sun is shining. With Solar, powering an EV is not only cleaner, but cheaper too.

With the electricity grid across Australia heading towards renewable energy power generation, running EVs will be even better for the environment.

When they first hit the market, EVs were considered premium and expensive cars. The technology was new, there were limited models available, and infrastructure was yet to support an electric future.

However, the gap between petrol and electric cars is continually getting smaller with some EVs now starting at under $40,000. These price drops are largely due to improvements in battery technology.

Long term, the real savings with EVs come due to lower maintenance and cheaper running costs. As EVs continue to evolve, we should see them become more affordable and accessible for everyday drivers.

When it comes to insurance, vehicle price and value factor into your premium, amongst other risk factors. Allianz doesn’t include a price increase because a car is an EV. Insuring a higher value EV is similar to insuring a higher value traditional car. In fact, our average new business premium over the last two years was close for EVs and traditional cars¹.

To learn more about insuring your EV, check out our Comprehensive Car Insurance.

When you think of a family car, your mind may go straight to SUVs and station wagons. Our first exposure to EVs were often sedans, and they don’t outwardly scream “room for prams and car seats”. Today, EVs could be the perfect option for your family.

The world’s best-selling car in 2023 was the Tesla Model Y, an all-electric SUV. It made up over 1.23 million sales during the year, many of which were drivers looking for a spacious family car.

You’re not just limited to the Tesla Model Y. EVs generally offer more space as they don’t have a transmission like you’d find in a petrol or diesel car. This means that you have storage in the boot and under the bonnet. Plenty of room for prams, shopping, day bags, and even luggage.

Plus, with families being busier than ever, even finding time to fill up at petrol stations can be challenging. Being able to conveniently charge your EV at home or overnight can give you a bit of time back.

It’s easy to base our assumptions about EVs on when they initially hit our markets. However, EVs and our cities are evolving to help make EVs a more efficient and affordable option for drivers.

If you’re considering making the switch to an electric vehicle, check out Allianz’s EV Hub. We’ll give you up-to-date info and resources to help you get started on your EV journey.