Zurich will be the preferred electric vehicle insurance provider for Tesla customers in Australia, after holding the same role in Switzerland since 2016.

The Zurich InsureMyTesla EV offer covers vehicle repairs using Tesla’s accredited repair network and is available for all Tesla Model 3 and Model Y customers through the car maker’s app.

Tesla sold 46,116 vehicles in Australia last year, making it the eighth-biggest brand.

“As the preferred provider for InsureMyTesla, Zurich offers Tesla customers affordable and convenient insurance,” the car maker’s Australia and New Zealand director Thom Drew said. “Tesla ownership becomes even more secure, giving more Australians the confidence to switch to electric vehicles.”

Zurich’s local head of general insurance Alex Morgan says the insurer is keen to expand the partnership, with the pair “in conversations about whether there’s more we can do in the Asia-Pacific region together.

“It’s really exciting what we’re doing. Customers will be able to access Zurich Insurance products through their My Tesla app. We’re trying to make it simple and easy for Tesla customers to buy insurance.

“We’re looking to make acquiring insurance alongside your Tesla as seamless as possible. We hope bringing down those barriers to purchase will mean some benefit in uptake rates if it’s easy to buy. The proposition has been highly digitised, embedded and is really intuitive and easy for customers to self-service.”

Electric vehicles can cost more to insure, Mr Morgan says, partly due to the higher cost of the vehicle, and also because there is “a little bit of time to adapt” to driving one.

“These things take off like rockets, so if you put your foot a little bit hard on the accelerator you drive into the garage door. Those kinds of accidents are probably more prevalent for first-time drivers of electric vehicles than they are for people buying an upgraded version of their Toyota Corolla. 

“We would expect over time that will moderate as people get more used to the way they drive and the way they handle, and so we’d see that incidence reduce.”

Mr Morgan also expects the cost of repairing electric vehicles to drop, noting Tesla this year opened its own body repair centres in Brisbane and Sydney and is expected to open one in Melbourne soon.

“We’ll see the manufacturers invest in their supply chains and the repair costs, we hope, will come down in time,” says Mr Morgan, who does not yet own a Tesla. “I haven't bought a car in many years, but certainly when it comes time to buy another one, I’ll absolutely be looking at the options around electric.”

Zurich Australia and New Zealand CEO Justin Delaney says ensuring EV customers receive quality insurance is critical in supporting net zero and the energy transition.

“Zurich and Tesla share a common pursuit to drive a more sustainable future, invest in cutting-edge technology and provide leading products and services to a loyal customer base. This is a natural alignment that will benefit many Australians.”