Does it cost more to insure an electric vehicle?

Did you buy an electric vehicle? Congratulations! We at VIU by HUB love new technology and everything that helps you save money. Your electric vehicle likely costs more to insure than a gas-powered car, but there’s a good chance you’ll make up the difference at the pump and by skipping certain types of maintenance.

So what will it cost to insure an electric vehicle?

We’ve pulled together some of the most common questions we hear about car insurance and electric vehicles. This guide covers a lot of ground, but a VIU by HUB broker is always available if you have a question that isn’t answered here.

Are electric cars more or less expensive to insure?

The cost to insure an electric car is similar to any other vehicle, but a few factors can push the price up. A significant one is the cost of repairs. If you’re in an accident, it will typically cost your insurance company more to cover repairs on an electric vehicle and, unfortunately, that added cost can be passed on to you.

That said, you may still come out ahead overall. Did you receive a government rebate or incentive for purchasing an electric vehicle? How much are you saving on fuel and maintenance? Are you enrolled in a telematics program? Your auto insurance premium is only one piece of the puzzle, and it shouldn’t discourage you from making the switch to electric.

Electric car insurance versus conventional car insurance: Is there any special coverage needed?

Not really. The most notable difference is in your premium, as discussed above. Your coverage options and provincial requirements will be the same regardless of what type of vehicle you drive.

How to save on electric car insurance costs

The good news is that saving on electric car insurance works the same way as saving on any auto policy. Some effective strategies include:

• Clean driving record – Maintaining a safe driving history is one of the most reliable ways to keep your rates down.
• Strong credit score – Keeping your credit in good standing can positively influence your premium.
• Adjusted coverage and deductible – Reviewing your coverage levels and deductible to suit your needs can help you find the right balance between protection and cost.
• Consistent coverage – Staying on top of your policy and avoiding any lapses in coverage helps you avoid rate increases down the road.

Average insurance costs for different electric vehicle models

Your personal circumstances will play a significant role in how insurance companies calculate your premium. Where you live in Canada, which electric vehicle you drive, your age and other factors will all influence your individual rate. A VIU by HUB broker can help, or you can start your personalized auto insurance quote online in minutes.

Does owning an electric car increase my insurance risk?

It costs more to insure electric vehicles because repair and replacement costs are higher, but the likelihood of a claim is no different than with a gas-powered vehicle. Under most standard policies available today, there are no electric vehicle-specific risks that would be treated differently in your coverage.

One option worth asking about is original equipment manufacturer (OEM) coverage. With OEM coverage, your policy is written to cover the cost of brand-name parts rather than remanufactured ones. It isn’t exclusive to electric vehicles, but it is more commonly added to electric vehicle policies than to those for gas-powered cars.

Will an electric vehicle charging station affect my home insurance cost?

It’s possible. Depending on your province, your insurance company may want confirmation that the charging station was professionally installed and may adjust your coverage accordingly. Reach out to a VIU by HUB broker to find out how it could affect your policy.