Are electric cars more expensive to insure than gas cars in Canada?

With files from Jessica Ho

This post was originally published on October 5, 2023, and was updated on June 17, 2026.

Zero-emission vehicles (ZEVs), including battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs), are growing in popularity across the country. 

According to Statistics Canada, over 21,000 new ZEVs were sold in March 2026, about a 75% year-over-year increase. This accounts for 12% of total new motor vehicles sold, up from 6.5% in 2025.

The federal government also reintroduced the Electric Vehicle Affordability Program (EVAP) in February 2026 to encourage Canadians to purchase EVs, offering incentives of up to $5,000 for certain models. 

But while upfront rebates make buying an electric vehicle easier, the ongoing question for drivers typically centers on the total cost of ownership. 

For example, will an electric car be more expensive to insure than a regular gas car? Or, will my EV give me a return in gas savings, especially with today’s rising prices?

Let’s find out.

What is the insurance cost breakdown of electric cars vs. gas cars? 

We compared the auto insurance quotes for 10 popular gas-powered cars with those of their electric or hybrid alternatives. Here's what we found when using Ratehub.ca's free auto insurance rate calculator. 

The table above shows that EV insurance is typically more expensive than coverage for a comparable gas-powered vehicle. Out of the 10 examples, eight saw an increase in premium cost for the electric or hybrid model. The largest increase was in the Hyundai Kona, which rose 49%, or about $107 per month. The Toyota RAV4 had the second-highest increase at 26%, while the Chevrolet Equinox saw a 21% increase.

Only the Kia Sportage and Honda Civic experienced decreases in cost for their electric models, by -2% and -8%, respectively. So while opting for most electric vehicles will raise your insurance premiums, certain models could lower your rate by nearly 10% each month. 

Keep in mind, however, that these numbers are specific to one hypothetical driver profile. To find out how much or how little you could be paying for electric vehicle insurance, compare personalized quotes with Ratehub.

Are electric cars always more expensive to insure?

No, electric cars aren’t always more expensive on insurance than gas-powered vehicles. A ton of factors go into calculating an insurance premium, some of which can lead to an increase in your auto insurance, while others can lead to a decrease. Let’s explore why and how your bill might change when driving an electric car.

Why might electric cars be more expensive to insure?

Electric cars may be more expensive to insure because of their higher maintenance,  repair and replacement costs, which poses a greater risk to insurers if you were to make a claim.

Here are a few reasons why maintenance factors could increase your rates:

Expensive parts – Electric car parts are often more expensive to obtain than gas car parts, leaving your insurance company with more financial risk in the event a damage claim is made.

Vehicle battery – EV battery packs can cost tens of thousands of dollars, and they can be difficult to repair or assess. Even the slightest damage may force insurers to write off the car completely as a total loss.

Repair training – Since electric vehicle technology is constantly evolving, specialized training or facilities may be required during the servicing process, causing repair bills to go up for your auto insurance company. 

Why might electric cars be cheaper to insure?

In some cases, electric vehicles may be cheaper to insure than gas vehicles because of their advanced safety features, lower theft rates and green vehicle discounts, which help lower the vehicle’s insurance rate.

Green vehicle discounts – Some insurers reward customers who choose to go green. If you’re insuring an electric car with Aviva Canada, for instance, you can get up to 10% off your premium or 5% if you insure a hybrid vehicle. 

Safety technology – Safety features can limit your likelihood of getting into an accident which ultimately reduces your insurer’s risk of paying out a claim. And since many EVs are equipped with the latest technology (e.g. cruise control, collision detection), you could potentially see a lower rate.

Lower theft rates – Insurers also look at the statistical risk factors of your vehicle, and cars with higher theft rates tend to have higher insurance costs. Each year the Équité Association releases a list of the top 10 stolen cars in Canada. The most recent list, from 2024, does not include any electric vehicles. Additionally, a 2023 article from The Globe and Mail revealed that there is less demand for stolen EVs overseas due to a lack of charging infrastructure. And there are simply fewer EVs on the road (despite the recent surge in popularity), so data may show lower rates of theft overall. But of course, this can also go both ways if the specific electric car you drive is a frequently stolen model.

Also read: How stolen vehicle trends can impact your auto insurance

How do rising gas prices impact the affordability of driving an electric car in Canada?

Electric vehicles are historically expensive to buy in Canada. However, as gas prices have spiked due to the ongoing conflict in the Middle East, EVs are looking increasingly affordable. 

As of June 9, 2026, the national average price of gas is sitting at 170.1/L. This is down from 183.8/L just a month ago, but still highly elevated from last year’s average price of 132.2/L. While these numbers represent the average, certain regions of Canada are experiencing even higher prices. Rising fuel costs quickly pile on to the total cost of owning a car and put serious pressure on drivers’ wallets. 

In comparison, these higher prices mean switching to an electric car will yield drivers greater savings. According to a report from Clean Energy Canada, driving the Chevrolet Equinox EV will save drivers $34,100 over 10 years, compared to a previous estimate of $22,200 calculated a few weeks before the fuel spike and federal EV rebate offering. Additionally, the payback period for the Equinox EV's higher upfront costs will now be just over two years instead of five.

While EVs have always offered some form of cost savings to Canadians, current economic pressures and cost realities mean that driving an electric vehicle could be more affordable than a gas-powered car at this time. 

However, there are other factors beyond gas savings and insurance to consider before purchasing an EV. This includes where you live and whether the charging infrastructure available to you can support your usage needs. Other factors to consider include the weather conditions in your area and whether an electric car could withstand harsh winters, for example. Remember, cost savings are just one part of the broader car-buying decision process.

The bottom line

Zero-emission vehicles, including electric and hybrid vehicles, are typically more expensive to insure than regular gas-powered cars. This is largely due to their higher repair and replacement costs, including costly car parts and batteries. However, some insurers offer discounts for electric vehicles, and the increased safety ratings of EVs could result in you paying lower premiums. Additionally, as fuel costs continue to rise across Canada, drivers will see greater long-term savings by opting for an electric vehicle. 

Ultimately, the cost of insurance depends on your unique driving history and profile. To learn what you’d pay for electric car insurance, compare quotes online today at Ratehub.ca.

Also read

• How much does car insurance cost for an electric car?
• The hidden costs of owning an electric car
• The best electric cars in Canada for 2023
• Leasing vs. financing a car – how does it impact insurance?