What is electric car insurance?
Electric car insurance is coverage designed for vehicles that run on electricity over gas.
While the majority of coverage is similar to standard car insurance in Ontario, there are some subtleties to note. For example, you may require additional liability coverage for situations unique to electric vehicles – charging cables, charging stations, and EV battery protection.
If you install a charging station at home, you will also need to update your home insurance policy to include the charging station equipment.
How does electric car insurance work?
Insurance for electric cars works the same as other normal policies. You are required to have insurance coverage to drive. You need a minimum of $200,000 in third-party liability. Mandatory coverage also includes accident benefits, direct compensation property damage (DCPD), and uninsured automobile coverage.
Drivers can increase their coverage and plan limits. This allows you to customize your policy. It’s common to add comprehensive or collision coverage. Speak with your insurer about coverage requirements specifically for electric cars.
Factors that affect electric car insurance
Here are some of the top things that can have an impact on your auto insurance for electric vehicles :
- Vehicle type: Costs can be different for fully electric vehicles.
- Retail price: It’s estimated that electric vehicles cost about 20% more than other cars.
- Repair costs: EVs have higher maintenance costs and higher costs of replacement parts. Mechanics with specialized training are required.
- Battery damage: EV car batteries are more prone to damage during a collision, significantly increasing repair costs.
- Fewer options: Policies for electric cars are not offered by all insurers. You may have fewer options, reducing your ability somewhat to comparison shop. However, more insurers are offering it.
How much does car insurance cost for an electric car or EV?
Car insurance for electric vehicles can vary just as much as for other vehicles. You can expect to pay about the same or slightly more for premiums. At ThinkInsure, we’ll help you shop around and assess options. We’ll find you the best policy based on your vehicle, driving history, and protection needs.
Take advantage of the electric car insurance discount
Driving an electric car automatically qualifies you for a discount. You could save up to 10% on your EV insurance discount. Cost savings on your premiums vary by insurer.
Learn more about car insurance discounts.