Understanding Car Insurance Pricing Models: Creating a new product for EVs

Unpacking your KOBA Insurance Premium

Car insurance pricing models are intricate algorithms that involve a deep understanding of risk factors, market dynamics, and the ever-evolving automotive landscape. At KOBA, we are at the forefront. Our technology driven EV-only insurance product is underpinned by leading technology, designed to protect leading technology.

Developing a robust pricing model involves several data based assumptions and processes, it’s a lot to take in and not something we’re going to unpack in great detail here for fear of putting you all to sleep! What we will do however is try to define how we do it differently and why it should matter to you. Finally, we will explain why our premiums may be different to other “traditional” insurance products on the market. 

At the highest level, Insurance is a service that aims to store a sum of money from each member in a “pool” to cover the costs of an unfortunate event. A community funded pool for arguments sake. Each person who wants access to said pool contributes a nominal amount that is determined by many factors, some which we’ve outlined below:

  • Driver Characteristics: Age, gender, driving experience, and accident history.
  • Vehicle Specifications: Make, model, year, repair costs and market value
  • Geographic Location: Urban or rural areas, traffic density, and theft rates.

Now a traditional insurer relies on the provision of this data once a year; either at commencement of a new policy, or at renewal. The premium is either charged annually, or in monthly instalments. Either way, it doesn’t deviate and is the same for the entire term. 

At KOBA we are about supporting those who support technology. EV owners are at the forefront of the technology frontier, so our intention is to use the benefits of the advancements to make insurance smarter. 

EV’s provide such a host of rich data that’d be a shame not to use for good. A simple connection to the vehicle’s onboard computer allows us to challenge the assumptive nature of insurance, filling the gap with real data. If you’ve driven minimal kilometres in a month, why should you pay based on an assumption for an entire year? 

Our telematics driven risk and pricing model is tailored to the individual by accessing real time data such as:

  • Usage Patterns: Annual mileage, daily commute, and parking location.
  • Driving Behaviour: time of day, braking, acceleration patterns, and choice of roads.

KOBA premiums are made up of a “base rate” which is supplemented by a rate “per kilometre”. These rates do take into consideration generalised data as a starting point. Think of risks associated with your storage address for claimable events like theft or storms for example. Your KOBA app then displays the number of kilometres you drive and shows your supplementary premium component. 

But what does this all mean to you as a consumer? Well, it will come down to a few things. Given the state of the world at the time of writing, the price on the screen is undeniably important. 

But how do you put a price on understanding? 

Consider your desire to own a better way of transporting yourself and the process you went through to purchase your EV. How much focus was placed on the price versus the features and benefits, let alone contributing to a bigger goal?

KOBA listened to the EV community and developed bespoke features such as cover for your wall charger, an EV hire car benefit, and a specialist panel of EV certified repairers with a full lifetime guarantee on repairs. And that’s just the start. We have a full roadmap of enhancements across our product and smart app to come. From coverage for more EV manufacturers, battery health tracking and industry partnerships designed with the EV owner in mind.

At KOBA, we are proud to be a part of the EV community and serious about ensuring that they are cared for appropriately.  Insurance doesn’t need to be the “same old same old” anymore. With change comes responsibility and investment. Are you ready to be a part of it?                  





*KOBA Electric Vehicle Comprehensive Car Insurance is currently only available for Tesla Vehicles.

Any advice provided on this site is general advice only and does not take into account your individual needs, objectives or financial situation. Terms, limits, conditions and exclusions apply. Before making a decision, you should carefully read the Product Disclosure Statement & Financial Services Guide (PDS & FSG), and the Target Market Determination (TMD), which are available at kobainsurance.com.au to help you decide if the product is right for you. 

The information is intended to be of general nature only. Subject to any rights you may have under any law (including the Australian Consumer Law), we do not accept any legal responsibility for any loss or damage, including loss of business or profits or any other indirect loss, incurred as a result of reliance upon the information. Please make your own enquiries.