With all the technology that is available today in the automotive industry, it can create quite a challenge for insurance companies to keep up. The introduction of the electric car is just one that falls into the new technology category. It also raises a lot of questions for the new owners of electric cars when it comes to their insurance.
Do Electric Cars Need Insurance?
Any vehicle that is going to be driven on the public roads in Canada is required to have vehicle insurance. The insurance follows the vehicle.
What Is An Electric Car?
It is a vehicle that is powered by an electric motor that works off batteries. Instead of fueling up with gas these EVs are taken to a charging station for the batteries to be charged.
A Plug-In Hybrid Electric Car ( PHEC)
This is a version of an electric car that has an engine that can be powered by gasoline or an electric motor and batteries. If the batteries run out of charge it can be switched over to the electric mode. Or vice versa.
What Does Electric Car Insurance Cover?
There isn’t much difference in what Insurance will cover with an electric car policy. Which includes:
- Liability coverage
- Accident benefits coverage
- Collision and comprehensive coverage.
How Much Does Electric Car Insurance Cost?
Between $1,700 to $4,600 a year.
As with standard type vehicle insurance how much it is going to cost is going to depend on the specific metrics used to determine the premium. One of these metrics is always the make and model of the vehicle. What is taken into consideration for this is:
- The make, model, and year of the vehicle
- How much will it cost to repair the vehicle?
- How much will it cost to replace it?
- What safety features does it have?
- What is the collision safety rating?
- What neighbourhood will the car be stored in?
These are all potential risk factors that the insurance company will look at closely. The higher the risk the more the premiums will cost. In the case of electric cars, they are currently more expensive to repair and replace, compared to a lot of other vehicles. This may change in the future as they become more popular.
Additional Risk Factors
Insurance Companies have also come to the conclusion that there may be additional risk factors that can come with the RVs. How these are factored in depends on the individual insurance companies. Some may automatically include them as part of the metrics they use. Others may offer additional coverage for them. Some that are considered are:
Extra liability coverage:
There could be a risk that someone may trip over the charging cable for the EV. This requires slip and fall insurance.
Extra temporary coverage:
If the need arises for a conventional loaner vehicle. In the case where there is no opportunity to charge an EV vehicle when on an extended trip.
Some EV car owners lease the batteries needed for charging the EV. There may be extra insurance protection that pertains to the supplies of these.
For the home charging station, it will mean that the home insurance policy needs to be updated.
There is a big variation in the estimation of costs for insurance for the electric vehicle. This is because of the other metrics that are going to be considered which include:
- The age of the driver
- The driving history
- Claims record
- Use of the vehicle
Is There An Insurance Discount For Electric Cars?
Some insurance companies are encouraging the use of electric vehicles because of the benefits they provide to the environment. Some examples are:
This insurance is providing Green Wheel Discount.
Offers a green savings discount
This insurance provider offers a Green Vehicle Discount of 5%. Plus if the EV has an automatic emergency braking system installed there is an additional discount on the insurance for this.
What Is The Best Insurance For Electric Cars?
The best insurance is going to depend on your specific needs. Aside from the mandatory vehicle insurance needed for Canadian driving, you may want extra coverage. This is going to depend on:
- Whether you want more third party liability coverage.
- Extra accident benefits coverage
- Additional coverage for collision
Each of these additional options has to be considered by each individual driver.
Then you are going to want to seek out insurance companies that offer a variety of discounts. Those mentioned above for going green and then other discounts that may be applicable to you. These can include limited mileage. Claims free, anti-theft devices, and others.
Is Insurance On Electric Cars Cheaper or Expensive?
Overall it can be a little cheaper or a little more expensive. It is all going to come down to how much emphasis is put on the different metrics the insurance company uses. Then how your personal metrics such as age, driving record, claims, etc. stack up. Then to offset this what types of discounts are being offered bot specifically for the EV and in general.
What Is The Cheapest Electric Car To Insure?
There is a lot more selection of EV cars on the market and being as they are still considered to be new there isn’t a lot of collective data available on them as yet. However, there is enough information to support which have become the cheapest electric cars to insure. Currently, these are:
There are a few factors that make these two EVs cheaper to ensure. One is the reasonable cost to purchase them. This means the replacement cost is more likable by the insurance companies. The repair costs are considered to be more reasonable. Something else that appeals to the insurance companies.
For The Future
As the EVs are growing in popularity it means there are going to be more options and better prices. Both will affect insurance for these vehicles.
Most Affordable EVs in Canada 2021
The newer EVs for 2021 that are considered to be the most affordable includes:
- Hyundai IONIQ
- Kia Niro PHEV
- Volkswagen e-Golf
- Nissan Leaf
- Chevrolet Bolt
- Tesla Model 3
In most cases, any one of these can be purchased in Canada for under $45,000.