A growing focus on environmental consciousness and sustainability has encouraged more Canadians to embrace electric vehicles (EVs). Even the Canadian government supports the transition to EVs with proposals and investments to accelerate its acceptance.
Electric vehicles are an effective way to reduce harmful greenhouse gas emissions; plus, it’s the more cost-effective option for many households in the long run. It makes sense to get EV insurance for your car; doing so not only ensures your vehicle but also takes a step to ensure a brighter and cleaner future ahead.
Electric Vehicles in Canada
Electric vehicles made up one in fourteen new cars registered between January and June in 2022, and the sale of EVs hit a six-month record in Canada at 56,000 sold or 35% more compared to 2021. British Columbia recorded the highest sales, with almost one in six vehicles registered in the first half of the year being electric; Quebec follows at 11.4%, and then Ontario at 5.5%.
These numbers are likely to increase–revenue in the market is projected to reach over U.S. $5 billion in 2023, and unit sales are expected to reach almost 200,000 by 2027. With Canada’s goals to reach zero-emissions status by 2050, the government has also actively made it easier for citizens to join in the charge for change. For instance, it has significantly invested in EV manufacturing in the country and increased EV charging stations across the different provinces. Insurance companies are contributing to improving charging stations in underserved communities, including Aviva’s Charged for Change program, which invested $3 million in charging infrastructure.
Why Get Electric Vehicle Insurance
Aside from the fact that car insurance is mandatory for all Canadian drivers, regardless of their vehicles, getting EV insurance is beneficial for owners because of their EV-specific coverage, discounts, and subsidies. Let’s look at some reasons why you should get EV insurance, preferably from a company with good employment standards and an eco-friendly approach.
EV-Specific Coverage
Electric vehicles have features that standard cars don’t, so aside from the basic coverage of most automobiles, EV insurance is tailored better to meet the needs of an electric car driver. For example, you can add liability risks for charging stations, battery protection, and other EV tech.
”Green” Discounts
The Canadian government offers rebates for some EVs of up to $5,000. Plus, some insurance companies give you a percentage off your premium when you insure an electric car.
Loss Subsidy
Some insurance companies allow you to receive a subsidy for upgrading from a gas-powered or hybrid vehicle to an EV after a total loss. This is an excellent incentive for your switch to a low-emission car.
Take Charge of the Future
As part of our collective effort to plug into better years ahead, we must make the necessary changes for sustainability. Switching to an electric vehicle is a great way to do that, and getting EV insurance for your car is another step toward the future.
FAQs
Why is electric vehicle insurance important?
Electric vehicle insurance is essential because it protects your investment in your EV, covers potential repair costs, and provides financial security in case of accidents or damage. Electric vehicles often have higher repair costs and specialized parts, making insurance crucial.
What are the benefits of electric vehicle insurance?
Benefits include coverage for repair costs, protection against theft, liability coverage, and potential discounts for environmentally friendly vehicles. It also offers peace of mind knowing your EV is protected3.
How much does electric vehicle insurance cost?
Electric vehicle insurance typically costs 18% to 30% more than insurance for gas-powered vehicles. The higher cost is due to the increased value of EVs, specialized repairs, and higher claim amounts1.
How can I find the best coverage for my electric vehicle?
To find the best coverage, compare quotes from multiple insurance providers, look for discounts specific to EVs, consider bundling policies, and ensure the coverage meets your needs. Use online comparison tools to help make informed decisions.
Are there any special considerations for EV insurance?
Special considerations include higher repair costs, the need for specialized technicians, and coverage for EV-specific components like batteries and charging stations. Some policies may offer additional benefits such as roadside assistance to charging stations2.
