There’s been plenty of talk about the future of transport – and at the centre of it all are zero emission vehicles, or ZEVs.
Whether it’s electric, hydrogen, or hybrid, there’s no denying that ZEVs are making their way into Australian fleets. But for transport operators considering the switch, there’s often one big question: What does this mean for insurance?
NTI, Australia’s leading transport and logistics insurance specialist, has been working closely with industry, including manufacturers and their repairer network, to better understand what ZEVs mean for operators – and how to support them through the transition.
Two of their experts offer up insights into the most pressing topics of discussion when it comes to considering ZEVs.
Is insurance for ZEVs more expensive?
As NTI’s Head of ESG, Nigel Rush explains, it’s not the electric motor, the batteries, or the hydrogen tank that drives premiums, so to speak.
“NTI doesn’t charge extra just because a vehicle is electric or hydrogen powered. There’s no ‘ZEV loading’ so to speak, on our policies.
“Like any vehicle, the biggest factor is its value. And right now, ZEVs tend to cost more than their diesel equivalents. It’s no different from insuring a newer, higher-value diesel truck – it’ll usually come with a higher premium.
“We look at the whole picture: how the vehicle is used, where it travels, what it carries, who’s driving it, and the claim history of the business. Just like we always have.”
Can they be repaired?
Absolutely, depending on the damage – and that’s been a key focus for NTI.
“We’re already supporting repairs on ZEVs. NTI has strong partnerships with OEMs, and that includes newer local players in the ZEV space like SEA Electric and Foton Mobility who we have been collaborating with right from when they started manufacturing ZEVs,” said Nigel.
“We’re also working with our Premium Repairers to make sure they have access to the right training, tools and information. Some of the safety procedures are different, sure, but repairing a ZEV isn’t a mystery – it just requires the right approach. And when it makes sense to repair over replace, we’ll always prefer that option.”
But NTI’s ZEV offering doesn’t just stop at insurance. The support also extends to roadside assistance.
“We are also very active in the roadside assistance space with major OEMs, including the provision of roadside support for the Hyundai Mighty Electric rigid truck,” Nigel added.
What happens when one is written off?
The current rules around the Written Off Vehicle Register (WOVR) were designed with traditional diesel vehicles in mind. As a result, there has been a few challenges when it comes to ZEVs says NTI’s National Technical Manager – Government & Industry, Richard Gibson, who leads this work with industry.
“We’ve had cases where a vehicle could have been repaired safely and efficiently, but the regulations made that difficult.
“We’re in ongoing consultation with government and industry bodies to look at how these rules could evolve to support growth in this space. In the meantime, we’re taking a practical, safety-first approach on a case-by-case basis.”
What’s next?
ZEVs aren’t coming – they’re already here. But that doesn’t mean every fleet needs to jump in tomorrow. What’s important is that operators feel supported, informed, and ready when the time is right.
Richard explains NTI isn’t just insuring these vehicles – they’re helping the industry shape what good looks like and setting the standard and expectations on what to look for from an insurance perspective.
“From training and repair processes to site safety and legislative reform, we’re working to make the road ahead smoother for everyone. If you’re thinking about introducing ZEVs to your fleet – or you already have – reach out. We’re working alongside you, and we’re here to help.”
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*This article contains general information only and you should obtain your own professional advice based on your personal and business circumstances. NTI bears no responsibility, and shall not be held liable, for any loss, damage or injury arising directly or indirectly from your use of or reliance on the information in this article.