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Electric Car Insurance in Canada

Friday, 6 May 2022

In Canada, electric cars only comprised 5.2% of newly registered vehicles in 2021, but the presence of EVs is steadily rising. At the current growth rate, it’s expected that by 2026 Canada could see electric vehicles make up 15% of all new vehicle registrations. Electric cars can bring a lot of savings – from eliminating fuel costs to generous government rebates and tax incentives. If you are considering buying a new electric car, you will also want to factor in the electric car insurance cost. This blog will explain what electric car insurance is, how much it costs, and the factors that affect those rates.

Electric Car Insurance Cost

The cost to insure any vehicle is based primarily on the vehicle itself and not its fuel type. Electric cars are usually more expensive than their gas-powered counterparts, so you may pay a higher premium for your electric car insurance. There are some aspects to electric vehicles that may make them more expensive to repair and replace, resulting in a higher insurance premium.

Factors that Determine Electric Car Insurance Rates

There are some electric-car-specific factors that could impact your electric car insurance cost.

Vehicle Make & Model: This heavily influences your electric car insurance premium because it indicates details about the vehicle’s safety features, replacement cost, and repair costs. As you can imagine, insuring a compact electric car like the Nissan Leaf will vastly differ from the electric car insurance cost of a Ford Mustang Mach-E.

Replacement Cost: Insurers calculate your rates based on how much it would cost to replace the vehicle. Electric cars cost an average of 20% more than comparable combustion vehicles, which means it would cost more to replace and could increase your premium.

Repairs: The electronic nature of EVs can also inflate repair costs. If an accident occurs, damaged parts usually need replacing. Batteries are more susceptible to damage in collisions and can costs thousands to replace. Your insurer will factor this in when providing an insurance quote.

Beyond the aspects of the car itself, your age, gender, location, and driving history all play a part in determining your car insurance rate.

What is the Average Electric Car Insurance in Canada?

The average electric car insurance cost in Canada can range from $190/month to well over $400/month depending on the type of vehicle you are insuring, the coverage you want, and your driving information. On average, you can expect to pay more for electric car insurance than insurance for gas-powered vehicles.

What Does Electric Car Insurance Cover?

The coverage you receive for an electric car insurance policy will be the same as other vehicles. There are certain coverages that are mandatory in each province that may include:

Third-party liability: financial protection from third-party legal claims related to property damage, bodily injury, and death

Accident Benefits financially protects if you, a passenger, or pedestrian requires medical care resulting from an accident (e.g., physiotherapy, or income replacement)

Uninsured Motorist Coverage: financial protection if you experience an accident where the other driver is uninsured

Direct Compensation-Property Damage: financially compensates you if your vehicle and contents are damaged

We highly recommend you consider these optional coverages to better protect your electric car (and your finances!). Click on the links to learn more about each coverage or talk to a BIG broker – we’re here to help.

Physical Damage Coverage: may include Collision, Comprehensive, or All Perils

Loss of Use: your policy would cover the cost of a rental car while you wait for repairs or shop for a new car, subject to a policy limit

Coverage for Non-Owned Automobiles: transfers your coverage to other vehicles in your care (e.g., a rental car)

Depreciation Waiver: ensures you get the Replacement Cost of a vehicle if it’s a write-off, and not the depreciated value

Accident Forgiveness: forgives your first at-fault accident so that it does not affect your insurance rates.

What are the cheapest Electric Vehicles to Insure?

These are some of most reasonably priced electric vehicles, which could potentially keep your insurance premium lower.

  • Kia Soul EV
  • Nissan Leaf
  • Fiat 500e
  • Hyundai Ioniq Electric
  • Tesla Model 3
  • Volkswagen e-Golf
  • Ford Focus Electric

Certain Vehicles May Be Eligible for an Electric Car Insurance Discount

Electric car insurance discounts may be available if you have any electric or hybrid car. These discounts will vary depending on the insurance provider, province, as well as the specific make and model of your car. If you are curious about discounts on your electric car insurance, speak with a BIG broker to explore how much you could be saving.

 

The bottom line is that the best way to find out your electric car insurance cost is to shop around. At BIG, our brokers do the heavy lifting for you – we can instantly compare the rates of over 20 trusted insurance carriers and recommend the best coverage at a competitive price. Plus, you can do it completely online! Start your online quote today to find out how much electric car insurance costs for your vehicle. BIG savings, small footprint.