Electric car insurance in Canada: All you need to know in 2024
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Discover the methodologyDue to their environmental benefits, the use of electric vehicles (EVs) is surging in popularity throughout Canada. And, with the continuous surge in gas prices, there is little reason to wonder why.
But what about electric car insurance? When it comes to electric vehicles, are owners saving money in the long run and how does it work if the battery degrades?
This article dives into the world of electric car insurance in Canada, answering all the key questions surrounding costs, coverage and limitations.
Electric Car Insurance: 5 Key Takeaways
- Electric car insurance premiums are typically higher than their gas-powered counterparts.
- Some providers offer discounts on electric car insurance through green incentives.
- The mandatory car insurance for EVs is the same as for all cars in Canada
- You will always need to have third-party liability car insurance.
- As EVs become more mainstream and cheaper to repair/replace, electric car insurance premiums will likely drop.
Who offers the best electric car insurance in Canada?
Since the needs of the many vary so greatly there is no single best electric car insurance company in Canada. However, there are multiple great insurance providers throughout the country that offer electric car insurance based on your specific needs and budget. A list of the top insurers in Canada that offer EV coverage include:
- Economical Insurance car insurance
- Intact Insurance car insurance
- CAA car insurance
- TD Insurance car insurance
- AVIVA car insurance
Expert advice
Canadian Insurance companies offer different insurance products throughout the various provinces. For example, car insurance offered by TD Insurance in Quebec may not be available in British Columbia. Always review insurance options in your specific province to save time when comparing quotes.
If you're looking to insure your electric car, look no further. Use our free tool below to compare Canada's best car insurance plans and get free quotes based on the unique needs of your vehicle.
Compare Canada's best car insurance plans
What to consider when buying electric car insurance?
You need to take into consideration the same factors when buying electric car insurance as you would when buying coverage for gas-powered vehicles. That is, the type of coverage you want and need versus what you can afford.
Furthermore, you want to consider which providers have the best customer support if you wish to discuss your policy in person, modern technology if you want a mobile app with 24/7 access to your details or if you simply value the financial security of the insurers themselves.
Of course, any number of variations may come into play when considering the best electric car insurance policy for you. The following list is a breakdown of factors that you should include when making your final decision on coverage.
- Who offers the best mandatory coverage limits?
- If the provider offers suitable comprehensive coverage options such as collision and upset, or all perils insurance.
- Specific situations may require specialized plans. For example car insurance for G2 drivers, or individuals with prior traffic violations etc.
- Since EV insurance discounts are becoming more prevalent with insurers aiming to incentivize environmentally friendly practices you may want to confirm if such discounts are offered.
- Find who offers the highest coverage limits as electric cars sometimes come with higher repair/replacement costs.
- Confirm that the policy includes battery coverage and/or any specific exclusions or limitations relating to EV battery faults
- If charging locations will impact your insurance premiums
- Look for additional extras offered by the insurer like free roadside assistance or legal consultations
Since the most suitable electric car insurance plan and provider depends on your unique circumstances, it is highly recommended that buyers don’t settle for the first quote they receive. Use HelloSafe’s online car insurance comparison tool to find a provider in your province that best fits your profile.
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How much does electric car insurance cost?
The average electric car insurance costs in Canada can range anywhere from $90/month to $500/month, depending on the insured individual, the make and model of the car to be insured as well as the level of protection.
For example, a young driver in their early 20s driving a brand new Tesla with comprehensive coverage will pay significantly more for their electric car insurance compared to an experienced driver in their 40s with no traffic violations or claims history driving a 5-year-old EV.
Due to the vast amount of factors taken into consideration during underwriting, it is impossible to provide accurate, or even good, average electric car insurance costs. Furthermore, since no insurance providers readily advertise their electric car insurance rates it is impossible to simply compare EV insurance premiums between companies.
Fortunately, most car insurance providers have some form of online quoting tool that allows you to input your specific details to get a preliminary quote. The electric car insurance costs in the table below are derived from AVIVA car insurance.
The parameters for the comparison costs are based on a 2020 Tesla Model 3 75D 4DR AWD located in Montreal, Quebec, mainly used for commuting purposes and approximately 7500km/year by an individual with no traffic violations or prior automobile incidents. The coverage includes third-party liability with collision and upset protection with a $1,000 deductible and an overall $1,000,000 liability limit.
| Age | Female | Male |
|---|---|---|
| 20 | $334.18/month | $361.52/month |
| 25 | $267.05/month | $286.49/month |
| 30 | $243.07/month | $256.15/month |
| 35 | $222.81/month | $230.99/month |
| 40 | $208.28/month | $213.10/month |
| 45 | $200.83/month | $203.74/month |
| 50 | $199.11/month | $200.65/month |
| 55 | $198.83/month | $199.11/month |
| 60 | $190.48/month | $189.30/month |
Is electric car insurance cheaper than gas-powered car insurance?
While it is common to think that electric car insurance is cheaper than gas-powered car insurance you will often find the former more expensive.
The misconception likely comes from the assumption that since electric vehicles don’t require gas they may be cheaper to run overall. Unfortunately, while EV owners will save money on gas costs, car insurance premiums are influenced by numerous factors as mentioned earlier, including repair and replacement costs which are normally more expensive for EVs.
Comparing electric car insurance rates with a Honda Accord
For example, the premium for a 2020 Tesla Model 3 driven by a 30-year-old with third-party liability and collision and upset protection with a $1,000 deductible is $256.15/month.
All things equal changing the insured vehicle to a 2020 Honda Accord EX 4DR instantly drops the premium down to $178.76/month.
What does electric car insurance cover?
Electric car insurance includes all the standard car insurance coverage that gas-powered vehicles are eligible for. From mandatory third-party liability insurance to collision and upset, comprehensive coverage and all perils protection, each type of insurance remains the same and can also be purchased for electric vehicles.
- Third-party liability: Sometimes referred to as civil liability, this mandatory will protect you from damage caused to third parties.
- Collision and upset: Collision and upset insurance provides financial protection if your vehicle is damaged or rolls over when you are at fault.
- Comprehensive (except collision and upset): Comprehensive car insurance protects against damage to your car from things outside of your control such as theft, vandalism, flying or falling objects and weather-related damages.
- All perils: As an all-inclusive coverage option, all perils offer protection for all the above and damage outside of the normal scope. Furthermore, all perils will share one deductible for all claims as opposed to separating deductibles which would happen if you had both collision and upset and comprehensive cover, separately.
Are there any differences between electric car insurance and gas-powered car insurance?
While the core insurance options remain the same for both electric cars and gas-powered vehicles, insurance providers may offer slight differences in the optional coverages EV owners can choose. This is because EVs come with distinct traits and any unique add-ons may act as an incentive for electric car insurance buyers to purchase their insurance over others.
Examples of special EV insurance add-ons include:
- Loss or damage to the vehicle including the battery (if it is damaged as part of an eligible loss)
- Free towing for dead EV batteries
- Protection for damage to or loss of a charging cable or station
If you’re finding it hard to compare multiple car insurance providers in one go then use HelloSafe’s car insurance comparison tool below. Free instant quotes are available at just the click of a few buttons.
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What electric car insurance discounts are available?
The good news is that despite EV insurance being more expensive than gas-powered car insurance the market is evolving. Several insurance providers already offer electric car insurance discounts to incentivize environmentally conscious driving and over time overall premiums may decrease as well.
Some potential electric car insurance discounts that you may come across include:
- TD Insurance’s Green Wheel Discount
- Intact Insurance Electric Vehicle Offer
- AVIVA Electric Vehicle and Hybrid Vehicle Discount
Additional Discounts
Most insurance providers will offer additional discounts when combining home and auto insurance. So, always speak to your current home insurance provider when looking for car insurance as they may offer you a discount to keep all your policies under one roof.
