Does hybrid car insurance differ from standard car insurance?
The good news is that hybrid car insurance is the same as any other type of car insurance. The same mandatory coverage types are required and the same optional coverage types will be available to you. The only difference is that your insurance company will have a few more factors to consider than with a traditional, gas-powered vehicle.
For example, an insurance company will consider what type of engine your hybrid vehicle uses. Rates for hybrids with gas-powered engines and batteries may be calculated differently than hybrids that use battery cells to draw power from the motor. Furthermore, since many hybrids feature both gas-powered engines and batteries to give drivers the option to switch between the two, an insurance company may ask how the driver typically powers the car or which mode they use more (as this can help them determine the risk of the vehicle). That said, hybrid car insurance does not differ in any significant way from standard auto insurance.
Do hybrid cars require auto insurance in Canada?
Yes, hybrid cars require auto insurance to be driven in Canada. In fact, all drivers in Canada regardless of the make, model, or type of vehicle they own, must purchase valid auto insurance. A driver’s car insurance policy must meet the minimum coverage requirements set by their province or territory.
For example, in Ontario, all drivers must purchase car insurance policies that include uninsured automobile coverage, accident benefits coverage, direct compensation - property damage coverage, and at least $200,000 in third party liability coverage. If a driver fails to purchase insurance, purchases insurance that does not meet the minimum requirements, or chooses to drive with an expired policy, they are breaking the law.
As such, if caught, an uninsured motorist could face fines, licence suspension, and even jail time, depending on the province. Therefore, it is imperative for all drivers of hybrid vehicles to purchase valid car insurance.
Mandatory car insurance coverage for hybrid vehicle drivers
As mentioned, auto insurance is a legal requirement in Canada. Each Canadian province and territory sets its own regulations on car insurance, so it’s up to you to ensure your policy meets the minimum requirements in your region.
Though coverage requirements vary, most include the same four key components as Ontario’s mandatory insurance: uninsured automobile coverage, accident benefits coverage, direct compensation - property damage coverage, and third party liability coverage. We break down each of these coverage types below:
Third party liability coverage
Third party liability coverage provides legal protection if you injure someone else or cause property damage to another person’s property on the road. This type of coverage can help pay for medical expenses associated with bodily injuries or repairs of damaged cars, as well as any applicable legal fees and settlements up to the coverage limit. In Ontario, drivers are required to hold a minimum of $200,000 in third party liability coverage at all times.
Direct compensation - property damage coverage
Direct compensation - property damage coverage protects an insured vehicle and its contents against property damage, so long as the policyholder is not at fault for the collision that caused said damage. Under this type of coverage, the insurance provider typically pays for the repair or replacement of your car directly. Note that to be eligible for direct compensation coverage, the collision must meet the following circumstances: it occurred in Ontario, it involved more than one vehicle, and it involved at least one vehicle that participates in the province’s car insurance program.
Uninsured automobile coverage
Uninsured automobile coverage is designed to protect you and any passengers in your vehicle if you get into a collision with an at-fault driver who is either uninsured or underinsured. This type of coverage can also protect the policyholder in the event of a hit-and-run.
Accident benefits coverage
If you, a passenger, or a pedestrian requires medical attention following a collision, accident benefits coverage can help. This type of coverage is provided no matter who was at fault for the accident and it can help cover a wide range of medical expenses like prescription medications, physical therapy, or rehabilitation, as well as loss of income.
Optional auto insurance coverage for hybrid cars
Beyond the mandatory insurance coverage listed above, drivers may choose to purchase additional insurance for their hybrid vehicles. Some of the most popular optional auto insurance coverages for hybrid cars in Canada are as follows:
If you get into an accident with another vehicle or object on the road, no matter who is at fault for the accident, collision coverage can help cover the costs. Under the collision coverage section of your policy, you can receive compensation to help pay for any property damage that resulted from the accident, such as a damaged car.
Hybrid car drivers may find comprehensive coverage worthwhile. This optional type of coverage protects against a wide range of circumstances other than collisions. Sometimes referred to as parked car insurance, comprehensive coverage will compensate you in the event of damage caused by an insured peril. Examples of insured perils are theft, vandalism, water damage, fire, riots, falling objects, and more.
Accident forgiveness coverage
One final type of optional car insurance coverage popular among hybrid vehicle drivers is accident forgiveness. Accident forgiveness is additional coverage that can be added to your hybrid car insurance policy as an endorsement, to protect your driving record and to help prevent your insurance premium from increasing if you have an at-fault accident claim. Note: coverage varies by province.
Hybrid car insurance discount
Did you know that driving a hybrid car could make you eligible for an auto insurance discount? To incentivize drivers to invest in eco-friendly vehicles (e.g. hybrid and electric vehicles), some provinces require insurance companies to offer auto insurance discounts to drivers of hybrids and EVs. For example, in Ontario, hybrid vehicle drivers can save up to 5% on car insurance (in addition to all the money you will be saving on gas by driving a hybrid).
What factors impact insurance costs for hybrid vehicles?
Beyond the typical factors that impact car insurance costs, like a driver’s age, location, marital status, driving record, claims history, or annual mileage, there are a few unique factors that impact hybrid vehicle insurance costs. We outline these factors below:
- The higher price tag: Hybrid vehicles cost roughly 20% more than other cars, which can impact premiums as they will be more expensive to replace.
- The advanced technology: Hybrid vehicles use new, more advanced technology, which can make them harder and more expensive to repair or maintain.
- CLEAR rating: Hybrid vehicles tend to have a higher CLEAR rating, which means the cost of replacement parts is higher. In addition, mechanics must have specialized training to repair hybrid vehicles.
- The type, make, and model of the hybrid car: There are two main types of hybrids on the market today - Plug-in Hybrid Electric Vehicles (PHEV) and Hybrid Electric Vehicles (HEV). The batteries of plug-in hybrids are charged by plugging them into an electrical outlet and driving a few kilometres before the gas engine turns on. Conversely, hybrid electric vehicles use both gas and electricity, with energy being generated through the vehicle braking system. Examples of some of the most common hybrid vehicles on the road today include the Toyota Prius Hybrid, Honda Civic Hybrid, Toyota Camry Hybrid, Chevy Volt, Chrysler Pacifica, Ford Fusion Energi, Mercedes C350e, S550e, GLE550e, BMW 330e, BMW i8, Fiat 500e, Hyundai Sonata, and the Kia Optima. Beyond the type of hybrid, make and model also matters, as models can vary considerably in price, trim levels, safety features, and more.
Cost of car insurance for hybrid versus electric vehicles
Most of the time, hybrid and electric vehicles fall under the same vehicle classification. Therefore, the cost of car insurance will not differ much simply because you drive a hybrid versus an electric vehicle.
Rather, what affects the cost of car insurance are other factors, like the exact make and model of the hybrid you drive, along with your age, location, and driving history, among others. To find out how much car insurance will cost for your hybrid vehicle, contact BrokerLink. Our expert brokers can explain how hybrid car insurance premiums are calculated and provide you with a free and accurate quote.
Compare hybrid auto insurance costs with BrokerLink
Shopping for hybrid car insurance just got easier. With an expert broker from BrokerLink by your side, you will find comprehensive, affordable auto insurance for your hybrid vehicle in no time. Continue reading to learn about the benefits of purchasing hybrid auto insurance with the help of an insurance broker:
Brokers work independently
First, brokers work independently of insurance companies. This allows BrokerLink to put the customers’ needs first - always. We will take the time to understand your unique needs and find policies that match your lifestyle and budget. We are able to provide objective, unbiased advice on the best car insurance for your hybrid car.
Brokers do the heavy lifting
Another benefit of working with an insurance broker to find hybrid car insurance is that we do all the hard work. Rather than spending hours scanning the internet for a great rate, you can relax while we do that for you. We will contact the top insurers in Canada to obtain and compare quotes on your behalf.
Brokers are hybrid vehicle insurance experts
BrokerLink has been in business since 1991. This means that we know the ins and outs of the auto insurance industry. As such, we have the resources and expertise to help find the right hybrid vehicle insurance for you no matter what make or model you drive.
Contact BrokerLink for a free hybrid car insurance quote
Protect your hybrid vehicle by purchasing hybrid car insurance today. Here at BrokerLink, we make finding car insurance easy. No matter what type of car you drive, we can help you find a policy that meets your needs, lifestyle, and budget.
BrokerLink will be by your side every step of the way. You will be assigned a dedicated insurance advisor who will take the time to understand your unique circumstances and find you the best possible coverage at the lowest possible rate. Plus, as insurance experts, we will ensure you take advantage of all possible car insurance discounts, including the hybrid car discount.
Give us a call to get started today. You can also visit us in person at one of our many locations across Canada, or request a free quote using our online quote tool. No matter how you prefer to get in touch, we can’t wait to hear from you!
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Is hybrid vehicle insurance mandatory in Canada?
Yes, car insurance is mandatory for all drivers in Canada, regardless of what type of vehicle you drive. Therefore, hybrid vehicle drivers must make sure to purchase valid insurance policies before getting behind the wheel.
Which insurance company offers the best auto insurance for hybrid vehicles?
No one insurance company in Canada offers the best hybrid car insurance rates. Insurance rates between drivers, so the best way to ensure you’re receiving a great rate on your hybrid vehicle insurance policy is to work with a broker.
For more FAQs, visit the BrokerLink FAQs page.
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