Australia
Electric vehicle insurance gaps spark cost shock for Aussie drivers
EV owners in Australia continue to pay more for car insurance than hybrid drivers, with average annual premiums of $2,134 for battery-electric vehicles versus $1,650 for hybrids, according to Compare the Market. Premiums are higher for EVs like the Tesla Model 3 due to complex repairs and limited parts availability. A shortage of certified EV repair technicians further contributes to rising costs and may slow adoption. Safety and environmental concerns persist, with most Australians worried about battery fires and unsure about recycling options. Public support is growing for national training programs to boost technician readiness.
Allianz secures green light for RAA Insurance takeover
Allianz Australia has received approval from the ACCC to acquire RAA Insurance, including a 20-year exclusive distribution deal. The ACCC found that competition in South Australia's insurance market remains strong due to major players like Suncorp, IAG, Auto & General, and Youi. It noted that RAAI's future competitiveness was uncertain due to industry challenges like rising claims and reinsurance costs. The Motor Trades Association of Australia voiced concern over growing consolidation in the sector, warning of reduced consumer choice and increased pressure on local repairers. The MTAA is calling for stronger regulation of insurer-repairer relationships through reforms to the MVIRI Code of Conduct.
UK
New Research Identifies Increased Theft Risk on Hybrid Cars
According to research shared by Yellowhite, hybrid vehicles are now facing the highest theft risk among all fuel types, with a theft rate 2.3 times higher than petrol cars. While hybrids make up just 0.7% of registrations, they account for 1.6% of thefts. Electric vehicles (EVs) also face increased risk—1.1 times more likely to be stolen than petrol cars, with over 4 EVs stolen daily in the UK. High-value components like lithium-ion batteries, keyless entry vulnerabilities, and strong international demand are contributing to these trends. Yellowhite recommends layered security strategies, including steering wheel locks, OBD port protection, Faraday pouches for keys, and GPS trackers. As EV adoption grows, these measures will become increasingly vital to prevent rising insurance costs and losses.
New car insurance law changes launching soon will send 'strong message' to British drivers
The UK government is set to introduce new car insurance rules that will prevent uninsured drivers from claiming compensation for property damage if they are involved in accidents with other uninsured or untraced drivers. This change follows a public consultation, where the majority supported reintroducing an exclusion removed under previous EU laws. Currently, such claims are funded by the Motor Insurers' Bureau (MIB), which is financed through levies on insured motorists. With strong public backing, the government aims to discourage uninsured driving and ensure that only law-abiding drivers receive compensation.
Germany
Price spiral: Motor insurers expect further rising repair costs
In 2025, car repair costs in Germany are expected to rise by another 4.5%, according to data from the German Insurance Association (GDV). This continues a trend of repair and spare part prices increasing much faster than overall inflation. GDV criticizes design protection laws that give carmakers a near-monopoly on visible spare parts, pushing prices up by 75% since 2014. Although a repair clause was introduced in 2020, true competition isn’t expected before 2045. Insurers have faced nearly €5 billion in losses over the past two years and responded with premium increases. Future results depend heavily on weather-related damage during the summer.
