Is Electric The Way of the Future?
One of the best things about being a consumer today is the wide range of choices available—especially when it comes to vehicles. More Canadians are considering the switch from gas or diesel to electric vehicles (EVs), driven by both environmental concerns and government incentives.. As part of Canada’s commitment to being a leader in climate change initiatives, the Government of Canada committed to achieving 100% zero-emission vehicle sales by 2035 for all “new light -duty vehicles.” Ontario is already on board—the registration of electronic vehicles have surged by over 50% in the last year alone!
When making the switch to an electric vehicle, factors like range, charging infrastructure, and government rebates are often top of mind. However, one important consideration frequently gets overlooked: how does switching to an EV impact your car insurance?
At Cassidy & Young Insurance Brokers, we help Ontario drivers navigate their insurance options, ensuring they understand the potential changes in premiums and coverage when adding an EV to their policy. While electric vehicles can qualify for discounts, specialized repairs can also drive up insurance costs. Our goal is to help you weigh these factors before making a commitment.
In this guide, we’ll cover:
- Key factors influencing EV insurance rates in Ontario
- Tips to maximize savings on EV insurance
- What policy differences you can expect
Let’s dive in!
How Much Does Electrical Vehicle Insurance Cost in Ontario?
How Much Does Electric Vehicle Insurance Cost in Ontario?
EV owners in Ontario often find that their insurance premiums are higher compared to equivalent gas-powered models. Here’s why:
1. Higher Repair Costs
Electric vehicles have specialized parts, such as battery packs, that are costly to repair or replace. As a general rule, the more expensive a car is to repair, the higher its insurance premium.
2. Limited Repair Shops
Not all mechanics or body shops are equipped to handle EV repairs, leading to longer wait times and higher labor costs. Specialized mechanics undergo extensive training to work on high-voltage components, which adds to the overall cost of repairs.
3. Higher Vehicle Value
EVs typically have a higher purchase price, meaning insurance companies may need to pay more in the event of a total loss. Most entry-level sedans are still gas-powered, making EVs a higher-value investment.
However, times are changing! Some insurers offer green vehicle discounts, aimed at rewarding those who prioritize the environment and helping to offset some of the costs. Additionally, as more electrical vehicle hit the roads, insurance rates should become more competitive as the data surrounding them and claims results grow.
How to Lower Your EV Insurance Costs
If you already own or plan to buy an electric vehicle in Ontario, you don’t have to settle for high insurance premiums. Here are some ways to reduce your costs:
1. Let Us Shop Around for You
As an insurance brokerage, we work with multiple providers. Not all insurance companies calculate electrical vehicles premiums the same way. Some offer better rates than others, so let us do the shopping for you to find the best options!
2. Take Advantage of Discounts
Many insurance companies offer discounts for:
- Owning a green vehicle (eco-friendly car discounts)
- Bundling home and auto insurance with the same provider
- Using a telematics device to track safe driving habits
We’ll ensure you maximize every discount you qualify for.
3. Consider a Higher Deductible
If you’re purchasing a high-end EV, you can opt for a higher deductible to reduce your premium. However, if you’re financing or leasing the car, be sure to check any deductible limits set by your lender.
Final Thoughts
Owning an electrical vehicle comes with a lot of benefits—saving on gas money, reduced emissions into the environment, and potential insurance discounts. The key take away is to understand the impact before committing to the change. Give us a call to help you shop around for the best rates, taking advantage of the available discounts, and most importantly making sure your new vehicle has the proper coverage in place!
At Cassidy & Young Insurance Brokers, we’re here to help Ontario drivers find the best coverage for their electrical vehicles. Contact us today for a quote and let us help you navigate your insurance options with confidence!
