Car Insurance and Electric Vehicles (EVs) in Canada
Introduction
Electric vehicles (EVs) are gaining popularity across Canada, with incentives and environmental benefits leading the charge. But how does owning an EV affect your car insurance? This article covers EV-specific insurance considerations and how to save.
Do EVs Cost More to Insure?
In most cases, yes—EVs tend to have higher repair costs and specialized parts, which increase premiums.
Average Annual Premium for EVs
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Tesla Model 3: $2,000–$3,500
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Nissan Leaf: $1,600–$2,300
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Hyundai Ioniq 5: $1,800–$2,500
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Ford Mustang Mach-E: $2,200–$3,200
Why EVs Cost More to Insure
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High cost of batteries
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Specialized repair facilities
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Parts availability
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Higher sticker price
Do EV Owners Get Discounts?
Yes, some insurers offer:
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Green/Eco vehicle discount (up to 10%)
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Low mileage discount
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UBI-based discounts
Best Insurers for EV Coverage
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Intact
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Sonnet
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TD
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Aviva
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CAA
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Desjardins
Tips to Reduce EV Insurance Costs
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Install anti-theft devices
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Use winter tires
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Compare rates across EV-friendly insurers
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Bundle with home insurance
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Enroll in UBI programs
EV Incentives That Help Indirectly
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Federal and provincial rebates (up to $5,000) reduce your upfront cost
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Lower repair bills with extended warranties
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Fuel savings = more money to cover insurance
Do EVs Have Special Coverage Needs?
Yes:
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Battery Coverage: Expensive to replace
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Charging Cable/Theft Insurance
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Comprehensive Protection: For weather/fire/theft
Conclusion
While EVs may cost more to insure initially, you can reduce costs by choosing the right insurer and taking advantage of green vehicle discounts. The long-term savings on fuel and maintenance often balance out the premium.
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