Australia shifts gears with New Vehicle Efficiency Standards

In an effort to reduce emissions and fuel consumption, Australia is set to introduce the New Vehicle Efficiency Standard (NVES) from 1 January 2025. This move aims to lower the nation’s carbon footprint and make driving more cost-effective by ensuring that the mix of new vehicles sold in Australia meets specific, increasingly stringent CO2 emissions targets.

It basically sets targets that a manufacturer’s entire range must meet or beat on average. This allows manufacturers to continue selling their best sellers, but also encourages them to introduce new fuel-efficient and zero-emission vehicles to offset them.

The benefits for drivers and the planet

The government projects that by 2028, new vehicle buyers could see savings of $5,710 over five years, with the potential for $17,000 in savings over the vehicle's lifetime. This is especially beneficial for those in regional areas who typically drive longer distances and, as a result, could enjoy even more substantial fuel savings.

Environmentally, the NVES is set to make a significant impact by lowering the average CO2 emissions from new vehicles in Australia, targeting a reduction of 369 million tonnes by 2050. 

Electric vehicles in the spotlight

This move is expected to be a boon for the electric vehicle market, which has already been on an upward trajectory. The Electric Vehicle Council has voiced strong support for the NVES, indicating that these standards are long overdue.

“Ultimately, these standards will mean all Australian consumers are paying lower fuel bills, breathe cleaner air and enjoying a greater choice of the latest and greatest in new cars. Thanks to these standards Australia will no longer be considered the global dumping ground for the world’s most inefficient vehicles,” said Electric Vehicle Council chief executive, Behyad Jafari.

How do you insure an electric vehicle?

Finding the right insurance for your electric vehicle in Australia isn't too different from insuring a regular car, but there are a few extra bits to keep in mind. Here’s a quick rundown:

1. Identify insurers for EVs. Start with finding which insurers offer EV car insurance. Most insurers accommodate EVs, often by modifying their standard policies to meet the unique requirements of electric vehicles.
2. Dive deep into policy details. Focus on whether the policy caters to EV-specific needs—like coverage for your home charging station or ensuring you can choose a repairer who specialises in electric vehicles.
3. Compare to find value. Don’t just look at the price tag. Consider what you’re getting for your money and how well it suits your electric vehicle’s particular needs.
4. Clarify any questions. If anything about the policy isn’t crystal clear, especially how it applies to an EV, get on the phone or send an email. Understanding your coverage inside and out is crucial.

And you can get a head start by comparing these comprehensive policies below.