The popularity of electric vehicles (EVs) has been on a steep rise over the years, and Canadians have been adopting these vehicles to help reduce pollution caused by transportation. However, when deciding to drive electric, there are other factors to consider, one of which is the cost of insurance.

Car insurance for an electric vehicle is significantly less complicated than you may expect, as the basic insurance needs for your EV are the same as for other cars. The mandatory standard policy in Canada is as follows:

• Accident benefits insurance: If you, your passenger, or a pedestrian you struck need medical assistance, such as income replacement or physiotherapy, you are financially protected.
• Third-party liability insurance: Protects you from third-party liability claims, such as property damage, bodily harm, and death.
• Direct compensation property damage (DCPD): Provides monetary compensation for damages to your car, its contents, and the lost use of your car (ON, AB, NB, QC, PEI, NS)
• Uninsured auto insurance: If you’re in a hit-and-run incident or the other driver is uninsured, this insurance will protect you financially.

Add-ons to your car insurance are available, such as comprehensive insurance or collision insurance. These add-ons are beneficial as repair costs for an electric car can be expensive when paying out-of-pocket.

There are also risk factors unique to EVs that need to be considered, such as including your at-home charging station to your home insurance policy.

Your car insurance premium is calculated in the same way as any other vehicle, where insurance providers consider:

• Your age, gender, address
• What license class do you have, and how many years of driving experience you’ve had
• Your driving history, which includes your accident and claims history
• Your vehicle use (commercial or personal use)
• Your car’s make, model, and value
• Your car’s replacement value
• Where your vehicle is parked

Because insurance premiums are specific to a case-to-case basis, there is no definite amount that each person will pay for their car insurance. However, you can get an estimate by providing your details to an online calculator to get a sense of how much you could pay towards your electric car’s insurance premiums.

On average, you could be paying anywhere between $1,700 and $4,600 on your electric car insurance premiums, depending on your province and various factors. It’s important to note that these figures are estimates, and every person will pay a different premium.

Higher insurance costs are that it costs more to repair or replace an electric vehicle. You can, however, save a great deal of money through discounts available to electric car owners.

Several insurance providers offer green vehicle discounts when you insure an electric car. Anti-braking systems are standard on most electric cars, and some insurance companies will give you a discount if you have one. These green driving discounts are additional to several other money-saving auto insurance discounts that you may be eligible for, including:

• claims-free
• multi-policy
• clean driving record

Incentives for all-electric and hybrid-electric vehicles are also available from the Canadian government. In addition, a tax credit incentive is known to encourage the use of zero-emission vehicles.

• Battery-electric, hydrogen fuel-cell, and longer-range plug-in hybrid vehicles can receive up to $5,000 in rebates.
• A $2,500 incentive is available for plug-in hybrid vehicles with a shorter range.

Some provinces have their own incentives for driving green on selected electric vehicles. For example:

• British Columbia’s $3,000 rebate
• Quebec’s $8,000 rebate

Call your insurance company to inquire about potential cost savings. The costs and incentives will likely balance out, resulting in you paying a price that isn’t much more or lower than a comparable gas-powered vehicle.

And don’t forget to compare car insurance with our tool to find the perfect car insurance according to your needs.