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How Much Does It Cost To Insure An Electric Car?

Each year there are more electric vehicles on our roads. Gone are the days when an electric vehicle was a rare sighting. With the introduction of the hybrid Toyota Prius in 1997, or more recently the fully electric Tesla’s in the 2010’s, electric cars are becoming more common. Aside from the environmental benefit of reducing greenhouse emissions, drivers look to electric vehicles to benefit from other aspects of owning an electric car. Let us now explore the costs and savings associated with owning and insuring electric vehicles in Ontario.

Battery Electric Vehicles (BEV): The Future Of Vehicles

The environmental movement focused on our changing climate is indeed picking up steam! This is most evident when considering the switch some people make from combustible engine cars to battery electric vehicles. Below is a list of just some of the numerous BEV’s in production which use rechargeable battery power as a fuel source instead of gasoline.   

  • Audi e-tron

  • BMW i3

  • Chevy Bolt

  • Chevy Spark

  • Nissan LEAF

  • Ford Focus Electric

  • Hyundai Ioniq Electric

  • Hyundai Kona Electric

  • Kia Soul

  • Mercedes-Benz B-Class

  • Tesla Model 3

  • Tesla Model S

  • Tesla X

  • Volkswagen e-Golf

Clearly the number of manufacturers producing electric vehicles highlights the market demand for electric vehicles. And although electric vehicles cost more to own and repair compared to standard cars, we can expect those costs to eventually go down with mass demand and production. 

Car Insurance For Electric Vehicles: Why Does It Cost More?

Typically you can expect to pay slightly more for your electric vehicle insurance premium. The battery of an electric vehicle is a costly part to replace or repair in the event of a collision. Other factors also influence a higher insurance rate for electric vehicles, such as:

  • Vehicle type: Costs can be different for fully electric cars.

  • Retail price: Electric vehicles cost about 20% more than standard cars.

  • Repair costs: Electric vehicles cost more to repair and replace parts, requiring specialized mechanics.

  • Fewer insurance options: Not all insurers have policies for electric vehicles. Although there are fewer options between insurance companies, each year more insurance companies are offering EV insurance. 

Rebates And Fuel Savings

Although electric vehicles cost more to purchase compared with standard cars, there are incentives in the form of rebates for EV owners. Started in 2019, the Canadian Government introduced the Zero-Emission Vehicles Program (iZEV) which could reduce the price of a new, fully electric vehicle by $5,000 or $2,500 for hybrid cars. You can check which vehicles are eligible for these rebates on the Federal Government website. 

Fuel savings are also an incentive to owning an electric vehicle. On average, at a traveled mileage of 12,000 km per year, an electric vehicle can save you around $700 annually in fuel cost. And considering the sharp rise in gas price and volatility of the petroleum market, these savings can be significantly higher. 

If you would like to compare insurance rates for electric vehicles and find out more on how you can save by driving a hybrid or zero-emission car, contact us and we will gladly answer your questions.
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