EV premiums are all over the map, auto insurance quotes suggest

Premiums for electric vehicles (EVs) are showing a wide variation depending on the make or model, rate aggregator Rates.ca says.

A large part of that depends on the cost to repair the vehicles, which is subject to a number of factors.

“Electric vehicles are still a relatively young segment of the market, so premiums reflect the repair and replacement costs insurers are seeing today,” says Daniel Ivans, Rates.ca insurance expert. “That’s partly because many EVs rely on newer technology and specialized components that can be more expensive to fix, and those costs can vary considerably depending on the make and model.

“As adoption increases and repairs become more standardized, pricing is likely to adjust.”

EVs in Canada cost an average of $1,328 more to repair than vehicles with internal combustion engines, although EVs are less likely to be written off as a total loss, according to a recent Mitchell report.

The cost of the average EV repair in Canada rose from about $5,500 in 2020 Q1 to about $6,000 in 2023 Q2, peaking at just under $7,000 last quarter, says the report, Plugged-In: EV Collision Insights Q2 2023.

It remains to see how the repair costs will play out in the future. Meanwhile, Canadian drivers are increasingly interested in buying EVs, Rates.ca auto quoter data suggests. The number of insurance quotes requested for EVs increased 19% year-over-year in January, and 33% in February 2026, according to Rates.ca.

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The uptick in interest follows Canada’s new trade deal with China allowing up to 49,000 EVs to enter under a preferential tariff rate. Also, the federal government has promised the return of federal rebates of up to $5,000 through the Electric Vehicle Affordability Program.

Auto insurance premiums can differ significantly even within the EV segment, Rates.ca says. The aggregator provided examples of different premiums charged to a hypothetical single male with a class G driver’s licence, age 35, who has a clean driving record and lives in Toronto. The auto insurance package assumes collision and comprehensive coverage and no discounts.

Based on that profile, drivers can pay up to $4,039 per year to insure a Hyundai Ioniq 5 N AWD, compared to only $2,606 for the Tesla Model Y Long Range.

By comparison, compact gas vehicle premiums would range from $2,578 for the Toyota Corolla Hatchback to $3,126 for the Honda Civic Si, placing the Model Y within that same pricing band.

In some situations, EVs can actually be cheaper to insure than gas vehicles.

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For example, the premium to insure a Fiat 500e can be priced at $2,171 per year, which is below the premium to insure gas-powered cars like the Toyota Corolla Hatchback ($2,578) and the Hyundai Elantra Essential at $2,956.

“What this shows is that insurance pricing isn’t uniform across electric vehicles,” says Ivan, commenting on the Rates.ca EV quotes data. “Some models price within the same range as comparable gas vehicles, while others reflect their higher vehicle value or performance profile.

“For drivers weighing their options, that variation is an important part of the overall comparison.”

David Gambrill

David has twice served as Canadian Underwriter’s senior editor, both from 2005 to 2012, and again from 2017 to the present.