Despite these differences, insuring an electric car is not radically different from insuring a fossil fuel vehicle, but there are some special considerations drivers should consider before going electric.

What coverage do I need for an electric car?

EV car insurance is no different than insurance for a vehicle with a combustion engine. Both are covered by the same compulsory insurance.

In every Canadian province and territory, auto insurance policies include civil liability to cover potential lawsuits against you for injuring or killing someone in an accident, as well as uninsured auto coverage to make up for damage caused by an uninsured driver. In every part of Canada except Newfoundland and Labrador, auto insurance must also include accident insurance to cover the costs of lost income, rehabilitation, health care, and funeral expenses as a result of an accident.

Collision and comprehensive coverage are mandatory in Saskatchewan and Manitoba, and are good additions no matter where you live. The first covers the cost of repairing or replacing your vehicle after a collision, and the second covers you for damage caused by burglary, fire or theft. Electric vehicle owners may also want to consider loss of vehicle use coverage – it covers transportation costs if you have an accident and your vehicle is temporarily in store.

How much does it cost to insure an electric car?

Insurance companies use the Canadian Loss Experience Automobile Rating (CLEAR) system to calculate how risky a particular vehicle model may be to insure. CLEAR assesses every aspect of a vehicle model, from the anti-lock braking system to the likelihood of it being stolen. A CLEAR score of 100 represents the mean; lower and higher scores represent less and more damage risk, respectively. The vehicle’s scores are then reflected in the driver’s insurance premiums.

So far, few EV models have been rated with the CLEAR system. Rob de Pruis, director of consumer and industry relations at the Insurance Bureau of Canada, says there isn’t enough data to know whether EVs are more expensive or cheaper to insure than gas-powered vehicles. But EVs may have a few attacks against them.

For starters, EVs tend to be more expensive than comparable fossil fuel cars, making them more expensive to replace. Just the price tag of a vehicle can drive up insurance premiums. Possible repair costs have a similar impact. The relative newness of EVs means that many repair shops aren’t equipped to fix electric motors or power banks (which serve as portable backup batteries for longer trips). †[These parts] do have a life expectancy, just like other parts of your vehicle,” says de Pruis. “If they were damaged in a collision, they can be quite expensive to repair.”

Is it more expensive to insure an electric car?

“In general, your vehicle’s fuel source does not automatically increase or decrease premiums,” says de Pruis.

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