Hybrid vs. electric vehicles in Canada

If you’re in the market for a new car, there’s a good chance you’re weighing the pros and cons of hybrid and electric vehicles. In 2025, making the switch from a traditional gas-powered vehicle isn’t just about being environmentally conscious; it’s also about long-term savings, convenience, and the growing accessibility of charging infrastructure across the country.

More Canadians than ever are going electric or hybrid. With fuel costs rising and more focus on cleaner transportation, drivers are looking for smarter and more affordable ways to get around. In fact, according to S&P Global, zero-emission vehicles now make up about one in every six new cars registered across Canada, with Quebec leading the charge. But how exactly do hybrid vs. electric vehicles compare? And which one fits your lifestyle best?

In this post, we’ll break down the key differences between hybrids and fully electric cars, including how they work, what they cost to own, and how they perform in Canadian winters, so you can make an informed decision that fits both your budget and your values.

Types of hybrid and electric vehicles

In Canada, there are three types of hybrids and EVs available. Here’s a quick look at each one:

Battery Electric Vehicles (BEVs)

BEVs are powered solely by an electric motor and battery. Their batteries must be charged regularly, either at a home charging station or a public one.

Plug-in Hybrid Vehicles (PHEVs)

A PHEV uses an electric motor and battery as well as gasoline. It can use its battery and electric motor to drive for short distances on electric power alone, usually within the 20 to 90 kilometre electric range, then it relies on its gasoline engine once the battery is depleted.

In order to use the electric range, you must plug it in to charge the battery. You can do this at your home charging station or a public charging station.

Hybrid Electric Vehicles (HEVs)

Finally, hybrids run on gasoline with electric assistance. The gasoline engine is supported by an electric motor that improves fuel economy, especially in city driving. HEVs do not need to be plugged in. Instead, they self-charge through regenerative braking and the gas engine.

Cost of hybrid vs. electric vehicle ownership

When considering a new vehicle in Canada, it's important to understand the total cost of ownership. From purchase price to fuel vs. electricity costs to maintenance costs and more, there's a lot to consider.

To make this easier, we'll compare the Toyota bZ4X and the Toyota RAV4 hybrid for our examples. They’re pretty similar in size and style. However, the bZ4X runs fully on electricity (BEV), while the RAV4 comes in both gas and hybrid options. So we feel that by comparing these two, you’re essentially looking at electric vs. hybrid in a side-by-side matchup. Keep reading to find out more:

Purchase price

A hybrid car in Canada is typically cheaper to buy than an electric vehicle. For example, on average, hybrid vehicles cost between $25,000 and $75,000, while, according to CAA's EV Buyer Guide for Canada, the price for EVs ranges from $41,000 to $325,000.

• The 2025 Toyota bZ4X starts at $46,515

• The 2025 Toyota RAV4 hybrid starts at $36,635

Fuel vs. electricity costs

Typically, it costs significantly less to charge an electric car than it does to pay for gas for a hybrid.

For example, it could cost you somewhere between $281.20 and $584.60 a year to charge your 2025 Toyota bZ4X in Ontario, while it may cost you around $1,840.80 a year to fuel up your 2025 Toyota RAV4 hybrid. Here's how we got those numbers:

Note: These estimates are based on average energy consumption and fuel prices in Ontario. Actual costs may vary depending on driving habits, energy rates, and fuel prices.

However, it's important to note that for home charging with an EV, you'll need to install a home charging station. According to Green Building Canada, the average cost to install a Level 2 home charging station in Canada ranges from $700 to $2,500, depending on various factors. So, if you add that cost to your first year, you may not save much when compared to the cost of gas for a hybrid. But after that first year, you'll start saving significantly.

Maintenance costs

Electric vehicles (EVs) also tend to be easier on your wallet when it comes to long-term maintenance. That’s because they have fewer moving parts and use regenerative braking, which helps reduce wear and tear. Since EVs are powered by an electric motor instead of a traditional internal combustion engine, you can say goodbye to things like oil changes, transmission fixes, spark plug replacements, and exhaust system issues.

Hybrid vehicles, on the other hand, are a bit more complex. They have all the usual components of a gas-powered car, like a gas engine and transmission, plus the additional parts needed to support the electric system. So when it comes to upkeep, hybrids can actually be more expensive to maintain than even a standard gas vehicle.

That said, while EVs need less routine maintenance, any major repairs might come with a higher price tag. That’s because fixing them often requires specialized tools and technicians. So while you’ll likely save money over time, it’s good to be aware of those potential costs.

Insurance costs

You might find that your insurance premium for your EV is a bit higher than for a hybrid. Hybrids and EVs usually come with higher insurance premiums than gas-powered cars, and it mostly comes down to repair and replacement costs. The more expensive a car is to fix or replace, the more it tends to cost to insure.

Take electric vehicles, for example. Their batteries are bigger and packed with advanced technology, which makes them pricey to replace if there's an accident. While hybrids have batteries too, they're usually smaller and less costly when compared to those in fully electric vehicles. On top of that, EVs often need specialized repairs that require specialized mechanics, and that can drive up the cost.

Luckily, many insurance companies throughout Canada offer discounts to those who drive eco-friendly vehicles. To learn more about hybrid vs. electric vehicle insurance premiums or to receive a free quote, contact BrokerLink.

Tax incentives

In 2019, Canada launched the Incentives for Zero-Emission Vehicles (iZEV), where Canadians could save up to $5,000 at the point of sale on eligible vehicles. This was available for Canadian individuals and businesses for the purchase or lease (over 12 months) of light-duty ZEVs.

However, according to the CBC, this incentive was paused and then stopped altogether by the federal government in March 2025.

Luckily, many provinces and territories still have their own subsidies for now. If you're looking at purchasing a hybrid or electric vehicle, be sure to check if your province offers any electric vehicle rebates.

Charging vs. fueling convenience

When it comes to convenience, fueling up a gas vehicle often wins over charging an electric vehicle. When fueling up, it only takes a few minutes at the pump, and then you're on your way. But with EVs, they can take hours to fully charge, which can be inconvenient at times. Quick overview:

Public charging in Canada

However, Canada's EV charging network has been expanding rapidly over the last decade. According to National Resources Canada, since 2016, the federal government has invested over $1 billion to make electric vehicles more affordable and to improve access to charging stations across the country. By 2029, the goal is to have 84,500 EV chargers and 45 hydrogen refuelling stations up and running nationwide.

Finding a charger is easier than ever, too, with apps like PlugShare and ChargeHub to help you locate available charging stations. You can also use Transport Canada's electric charging and alternative fuelling stations locator.

Home charging options

However, unlike having to go out to fuel up a hybrid, EVs can offer a different kind of convenience, particularly if you have access to home charging. Charging your EV at home is often the most convenient and cost-effective option.

Level 1 chargers use a standard 120V outlet, but it can take 20 to 40 hours for a full charge. That's why many EV owners get a Level 2 charger installed at their home. Level 2 chargers, which require a 240V outlet, can fully charge most EVs overnight. As we mentioned earlier, installing a Level 2 charger in Canada typically costs between $500 and $2,500, depending on your home's electrical setup.

Charging and refuelling time frames

Refuelling a gas vehicle only takes about 5 to 10 minutes. The time it takes to charge an EV, on the other hand, varies. Level 2 home charging adds about 25 to 40 kilometres of range per hour, which is why many owners charge their EVs overnight. However, DC fast chargers can provide an 80% charge in as little as 30 to 45 minutes, which is great if you're off on a long road trip. You can stop and grab a bite to eat while waiting for your EV to charge.

So, while gas vehicles offer quick refuelling, EVs provide the convenience of home charging, allowing you to start each day with a full battery.

Charging and refuelling frequency

How often you have to charge or refuel your vehicle will depend on the specific make and model you drive, and how often you drive it. Let's go back to the 2025 Toyota RAV4 Hybrid and the 2025 Toyota bZ4X.

At a constant speed of 100 km/h, the driving range for a 2025 Toyota RAV4 Hybrid is roughly nine hours. For the 2025 Toyota bZ4X, it's roughly 4.5 hours. This means that with the hybrid, you'd get roughly double the driving distance. Here's how we got these numbers:

Hybrid and electric vehicle performance in Canadian weather

Canadian winters can pose challenges for both EVs and hybrid vehicles. See below for a detailed look at both:

EVs

Cold temperatures are known to reduce EV range. In fact, according to CAA’s EV Winter Test, where they drove 14 top-selling electric vehicles in Canada from Ottawa to Mont-Tremblant in freezing temperatures, every single one saw a drop in range. Some went as far as 39% less than their official rating, while others only lost about 14%.

It’s not just about how far you can go, either. A recent CAA survey found that 4 in 10 EV owners said charging slows down noticeably in extreme cold.

Hybrids

Hybrids also experience decreased efficiency in cold weather. While statistics specific to hybrids in Canada are unavailable, the U.S. Department of Energy reports that fuel economy for hybrids in cold weather typically decreases by 20% to 40% in city driving and 25% to 45% on short trips.

So while EVs and hybrids can certainly handle Canadian winters, it’s good to be aware of how the cold can affect things like range, charging speed, and fuel economy.

Keep in mind that while these numbers seem significant, gas-only vehicles also lose fuel efficiency in the winter, generally around 10% to 20% for city driving and as much as 15% to 33% on short trips.

Hybrid vs. electric vehicles: pros and cons

Are you still not sure which one is better for you? Here’s a quick summary of the pros and cons of hybrids and electric vehicles to help you decide:

Contact BrokerLink for your car insurance

If you want to continue discussing and comparing hybrid and electric cars, contact BrokerLink today. We are a team of experts who can help you choose between buying a hybrid car and buying an electric car.

From there, we can also help you insure it. Whether you need electric car insurance or hybrid car insurance, having proper car insurance for your new hybrid or electric vehicle matters. Thanks to our extensive resources and history in the auto insurance industry, you can trust us to have your best interests at heart. We can explain how mandatory coverage works in your province and ensure that the policy you choose is competitive and affordable.

You can reach us by phone, email, or in person at any one of our locations throughout Canada. No matter how you choose to get in touch, a BrokerLink insurance advisor will be happy to assist you. We also encourage you to take advantage of our free online quote tool that can provide you with a competitive quote in minutes.

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