Matt Hands, VP, Insurance and MoneySense
Electric car insurance (also known as electric vehicle insurance or EV insurance) is exactly what it sounds like – it's auto insurance designed specifically for electric cars. Like traditional car insurance, policies for EVs still require the same types of coverage (e.g. third-party liability, accident benefits), but you can also add on special coverages to cater to the unique needs of the vehicle.
There are many different types of electric vehicles available on the market, catering to various needs, preferences, and use cases. Here, we cover the three main ones – battery electric vehicles (BEVs), plug-in hybrid electric vehicles (PHEVs), and hybrid electric vehicles (HEVs).
Battery electric vehicles
These vehicles are powered by battery only. There is no internal combustion engine, allowing the cars to produce zero emissions.
Plug-in hybrid electric vehicles
These vehicles can be charged electrically, but still have an internal combustion engine. The cars run on gas after the battery is depleted.
Hybrid electric vehicles
These vehicles have a gas engine and an electric motor, but there is no plug for charging. The motor is there to help the engine reduce emissions.
Direct compensation for property damage
While the main types of auto insurance for an EV remain the same, some insurers offer specialized coverages to cater to the specific needs of these cars – let's take a look at a few options you can ask your provider about.
While your battery may already be protected under your policy, it's a good idea to double-check with your insurer and ask about specialized options.
Dead battery towing
This type of coverage provides the funds needed to tow your EV – in case you run out of battery before you're able to make it to a charging station.
This add-on to your insurance policy ensures you're also covered for damage to your at-home charging cable and charging station.
Looking for cheap electric vehicle insurance?
You've come to the right place – find your lowest rate with our auto insurance rate tool today.
While there is no one-size-fits-all number for the cost of electric car insurance, we can look at hypothetical rates to help estimate how much you could be paying. Below is a table summarizing EV insurance quotes for 42-year-old female who lives in Toronto, Ontario. The policy accounts for an estimated annual commute of 20,000 km, and it includes three optional insurance endorsements: loss of use, removing depreciation deduction, and accident forgiveness.
Thousands of users come to Ratehub.ca weekly, looking to save big. With our free quote comparison tool, you can find your lowest auto insurance rate in just a few minutes – here are three sample quotes our users received for their electric vehicles.
2008 Toyota Highlander Hybird
for a 42-year-old male living in Calgary, AB
2023 Kia EV6
for a 48-year-old male living in Oakville, ON
2022 Tesla Model Y
for a 29-year-old female living in Mississauga, ON
Generally speaking, the more risk you and your vehicle bring, the more expensive your auto insurance rate will be. Below, we cover a few main factors insurers take into account when calculating your EV insurance quotes.
EV make & model
The more expensive it is to repair or replace your electric car, the higher your insurance rates will be – EVs equipped with the latest tech often come with increased premiums.
Young drivers (as well as male drivers) tend to face higher premiums due to statistical risk factors.
Taking out your vehicle more leads to higher insurance premiums. But you can also opt for telematics to get rewarded for safe driving behaviour.
Busy cities tend to come with higher rates when compared to rural areas. Not only are you more prone to collision, but you're also more prone to theft.
The longer you've been a driver, the cheaper your insurance will be. And getting your full license will also help.
Coverage & discounts
It's no surprise that the more coverage you have, the more expensive your insurance will be. But be sure to ask your insurer about available discounts.
While coverage for an electric car isn't always more expensive than coverage for a gas-powered car, it can be. There are a few different reasons for this, including the factors listed below.
The high-tech parts of an electric vehicle can make it more expensive to repair after a damage claim is made.
To repair an electric vehicle, special training or machinery may be needed, costing insurers a larger payout.
EVs batteries are extremely costly to repair or replace – insurers may take this into account when quoting the vehicle.
Can I get a discount on electric car insurance?
Many providers offer specialty discounts on electric vehicle insurance as a way to promote green driving – be sure to ask around for more details.
Aside from getting a green vehicle discount, there are many other ways you can save on your electric car insurance policy. Here, we cover a few methods you can try to ensure you're getting the best rate possible.
Compare EV insurance quotes
You won't know which provider offers the cheapest electric car insurance until your shop around – and with Ratehub.ca, you can do so in just a few steps.
Insurers value customer loyalty, and bundling other coverages (home insurance, tenant insurnace) with your EV policy will help lower your premium.
Install safety devices
With auto theft on the rise, many insurers are pushing safety devices. Installing one can help lower your rate as you're reducing your risk of falling victim.
Keep a clean driving record
Insurers look at your driving history to determine your likelihood of making a future claim. The cheapest EV insurance rates go to drivers with clean records.
Track your driving
With telematics (or usage-based insurance), your insurer tracks your driving habits to quote you more accurately. Practicing safe-driving can decrease your rate.
Increase your deductible
Your deductible is the amount of money you pay out before your insurer meets you with the rest. Choosing a higher one will lower your regular insurance bill.
Want to see personalized electric car insurance rates?
In just a few minutes, you can compare EV insurance quotes from Canada's top providers.
Looking for more information on electric vehicles in Canada? We've got more resources to help you out – visit any of the blog posts below to learn more about the topic.
Do electric cars need insurance?
Yes, to drive an electric car in Canada, you'll need to make sure it's insured with the basic, mandatory auto insurance coverages – which are the same coverages required for gas-powered vehicles.
Are electric cars cheaper to insure?
An EV can be cheaper to insure when compared to a similar gas-powered model, but that's not always the case. While factors such as a green vehicle discount and advanced safety features can decrease your insurance premium, the high replacement value of an EV can also offset the savings. To find the exact price you'll be paying to insure your electric car, be sure to compare auto insurance quotes with us.
Are electric cars more expensive to insure?
An EV can be more expensive to insure due to high repair and replacement costs, but that's not always the case. You may receive special discounts for driving a green vehicle or having advanced safety features. To find the exact price you'll be paying to insure your electric vehicle, be sure to compare auto insurance quotes with us.