Electric car insurance

Hybrid and electric cars are an increasingly popular choice in Canada. According to Statistics Canada, from 2017 to 2018, the number of new zero-emission vehicles registered increased by 115%!

Just like any other car on the road, a hybrid or electric vehicle needs the right car insurance. In this article, we’ll discuss the basics of hybrid and electric vehicles. We’ll go over how insurance companies determine rates for these types of vehicles. We also have a few tips and tricks to share that can help save you money on your hybrid or EV insurance.

Pros and cons of a hybrid vehicle

Many people who are conscious of the environment but unwilling to purchase a fully electric vehicle choose the hybrid route. If you’re considering a hybrid vehicle, here are a few of the pros and cons to consider:

Pros Cons
You can save on fuel Cost of repairs is higher than regular cars
Lower carbon footprint Replacing the battery can be costly
The latest advancements in technology make hybrids easier to operate and drive Size options are limited – might not be a good option for a growing family

Pros and cons of an electric vehicle (EV)

Are you thinking about ditching the gas pump altogether? Here are a few of the pros and cons to think about if you’re considering purchasing an electric vehicle:

Pros Cons
No more spending your hard earned money on gas More expensive initial cost
Zero emissions means your carbon footprint is significantly lower There can be a limited range of distance
EVs are quieter than regular cars You will be dependent on charging stations and their availability
Electric cars can require less maintenance than regular cars because they have fewer parts It can be hard to find technicians trained in electric car repair

How hybrid car and EV insurance rates are determined

When insurance companies determine car insurance rates, many different factors are considered. Where you live, your driving history and your claims history are things the insurance company will take into account. Here are a few things the insurance company will consider:

The cost of repairs

This is something insurance companies consider for all types of vehicles. It can be a greater point of consideration for hybrid and EV cars. That’s because the parts can be significantly more to repair.

How you use the vehicle

Your insurance broker will ask how you use your vehicle: is it for pleasure or for work? How often do you drive? How many kilometres is your daily commute? These are all important factors in determining your rate.

How to save on hybrid car and EV insurance

Due to the higher cost of parts and repairs, hybrid and EV vehicles are sometimes more expensive to insure. Don’t let that be a reason to write off electric vehicles completely! Insurance companies consider a lot of different things when they determine your rate. Getting an electric vehicle doesn’t necessarily mean your insurance will go through the roof. Plus, we’ve rounded up a few tips to help you save on your hybrid or electric vehicle insurance:

Different cars have different rates

Some brands of hybrid and electric cars are cheaper to insure than others. Talk to an insurance advisor for advice on what cars have the best rates.

Take advantage of rebates

The Canadian government offers rebates for some electric and hybrid cars. You might be eligible for a rebate of up to $5,000. While this money is separate from your insurance, it might help offset the cost of a slightly higher premium.

Take advantage of “green” discounts

Some insurance companies offer discounts of up to 20% for driving hybrid or electric cars. Talk to an insurance broker to learn which companies offer these types of discounts.

Traditional insurance saving tips also apply

Savings for regular cars such as bundling, using winter tires and using telematics also apply to electric cars. Check out our blog post where we share some easy tips for saving on your insurance premium.

Electric car insurance coverage

Car insurance is required by law in Canada, which means all drivers must carry valid, up-to-date policies with them at all times. No matter whether you drive a gasoline car, hybrid car, or electric car, your auto insurance policy will need to include the following four types of mandatory coverage.

Third party liability coverage

Third party liability coverage is the first mandatory component of electric car insurance in Canada. It provides legal protection in the event that a driver injures someone else or causes damage to another person’s property, such as their vehicle. This type of coverage can help pay for medical expenses, vehicle repairs, court fees, and settlements up to the coverage limit. The minimum requirement for third party liability coverage varies by province.

Direct compensation - property damage coverage

Direct compensation - property damage coverage protects an insured vehicle and its contents from the costs of property damage. If you make a claim under this type of coverage, the insurance company will likely provide direct payment for the cost of repairs or replacements.

Uninsured automobile coverage

Uninsured automobile coverage is designed to protect you and any passengers in your vehicle if you get into an accident with an at-fault driver who is uninsured or underinsured. This type of coverage can also protect the driver if they are the victim of a hit-and-run.

Accident benefits coverage

Finally, accident benefits coverage can be claimed if you, a passenger, or a pedestrian requires medical attention following a collision. You can receive compensation under this portion of your policy no matter which party caused the accident. Accident benefits can help pay for medical expenses, such as prescription medications, physical therapy, or rehabilitation, loss of income, and other associated costs.

Optional electric vehicle insurance coverage

Standard car insurance coverage in Canada consists only of the compulsory coverage types above. But there are several optional coverages also available to drivers. Though not mandated by provincial law, these coverage types may be worthwhile for drivers of hybrid and electric vehicles. To learn more about three of the most popular additional coverages, keep reading.

Collision coverage

Collision coverage protects the policyholder if they get into an accident with another vehicle or object on the road. Regardless of which party is liable for the accident, you can receive compensation to help pay for any property damage that resulted from it under the collision coverage portion of your electric car insurance policy.

Comprehensive coverage

For peace of mind, many EV drivers choose comprehensive coverage. While standard auto insurance coverage in Canada offers protection against collisions, it does not protect drivers from other circumstances on the road. That’s where comprehensive coverage comes in. If you choose to include comprehensive coverage in your electric or hybrid car insurance policy, you and your vehicle can be protected against theft, vandalism, water damage, fire, and more.

Accident forgiveness coverage

The last optional coverage type that is popular among Canadian drivers is accident forgiveness. Accident forgiveness can be added to your electric 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.

Compare electric car insurance costs with BrokerLink

Shopping for electric vehicle insurance just got easier. With a trusted broker from BrokerLink by your side, we can help you obtain and compare electric car insurance quotes so that you can find a policy that matches your lifestyle, driving habits, and budget. Want to learn more about the benefits of working with an insurance broker? Keep reading!

Brokers work independently

The first thing you need to know is that insurance brokers work independently of insurance providers. This allows brokers from BrokerLink to take a customer-first approach to car insurance. Our insurance advisors take the time to learn about each customer so that they can find the perfect coverage for them and their families. Plus, we are always happy to offer our unbiased opinions on the best electric vehicle insurance policies available today.

Brokers do the heavy lifting

If you hire an insurance broker to help you shop for hybrid car insurance, they’ll do all the heavy lifting. By this, we mean that while you’re relaxing on the couch or spending quality time with family, your BrokerLink insurance advisor will be looking for the right electric vehicle insurance policy for you. Comparing quotes, unlocking discounts, and browsing coverage options are our specialties. Let us take care of everything while you sit back, relax, and enjoy your free time.

Brokers are electric car insurance experts

Insurance brokers like BrokerLink are experts in the field of car insurance and are always up-to-date on the latest trends within the automotive industry. Therefore, you can trust that BrokerLink’s insurance advisors are well versed in all things electric vehicle insurance. They can uncover discounts and promotions and ensure you find the most competitive electric car insurance rate possible. Whether you drive a Tesla Model 3, Hyundai Kona Electric, or Nissan LEAF, BrokerLink can find car insurance for electric cars of all makes and models.

Contact BrokerLink Insurance for your hybrid and electric vehicle needs

At BrokerLink, our licensed insurance experts can help you get the insurance you need at a competitive rate. Even though hybrid and electric cars are relatively new to the market, our insurance advisors have the experience and expertise to assist you. Don’t do it alone! Let a BrokerLink insurance advisor help you get the insurance you need to protect your investment.

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FAQs on hybrid car insurance

Why is hybrid car and electric vehicle insurance considered a niche product?

Keep in mind that hybrid and electric vehicles are still relatively new to the market. Technology moves faster than insurance companies, so it takes time to catch up. If electric cars continue to grow in popularity, insurance companies might change their stance on electric vehicles being a niche product.

Is there specific car insurance coverage I can buy to protect my hybrid or EV’s car battery?

Depending on the type of car and type of battery you have you may be able to purchase insurance for your battery for an extra fee. Talk to an insurance broker to learn more.

I bought a charging station for my hybrid car/EV – can I insure that too?

Insuring your charging station might fall under your home insurance. Talk to your insurance broker to learn more.

What is the least expensive hybrid or electric vehicle to insure?

This is a difficult question to answer as so many factors go into calculating electric car insurance costs. However, when it comes to the make and model of your vehicle, the general rule of thumb is the less expensive the car, the less it will cost to insure. Of the most popular hybrid and electric vehicles in Canada, budget-friendly models include the Hyundai KONA Electric, Chevrolet Bolt EV, Hyundai Ioniq 5, and Nissan LEAF. Meanwhile, on the other end of the spectrum are luxury vehicles like Tesla Models X and S. Ultimately, the more you spend on your electric vehicle, the more expensive your insurance may cost. The one exception to this is if your vehicle is equipped with certain safety features or anti-theft devices. In addition, many insurance providers offer discounts on electric car insurance, so be sure to ask your insurance broker about any promotions you might be eligible for.

Is electric vehicle insurance mandatory in Canada?

Yes, car insurance is mandatory for all drivers in Canada, whether they drive electric, hybrid, or gasoline vehicles. Driving without insurance is a criminal offense that could result in hefty fines worth tens of thousands of dollars. To protect yourself, your vehicle, and other drivers and passengers on the road, invest in a quality electric vehicle insurance policy. Not sure where to begin? An insurance broker can help you find a policy that not only suits your needs but also complies with local laws surrounding car insurance.

Which insurance company offers the best car insurance for electric vehicles?

No one insurance company in Canada offers the best electric car insurance rates. Insurance rates vary, so the best way to ensure you’re receiving a great price on your electric vehicle insurance is to work with an expert. But shopping around for auto insurance can be tedious and time-consuming, which is why we recommend working with an insurance broker. Brokers know the ins and outs of the auto insurance industry and will make sure that you take advantage of any electric vehicle discounts available in your province.

For more FAQs, visit the BrokerLink FAQs page.

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