The rise of EVs in Canada reflects both environmental responsibility and technological progress. More drivers are now adopting EVs because of reduced emissions, government incentives, and lower operating costs. At the same time, many prospective owners raise an important question: how does auto insurance for an EV differ from coverage for a traditional gasoline car?
While the foundation of auto insurance remains the same, EV ownership introduces specific considerations that influence coverage needs and premium costs. Understanding these details helps protect your investment and ensures compliance with Ontario regulations.
Whether you drive a gas-powered car, a hybrid, or a fully electric vehicle, Ontario law requires the same minimum coverage. Every registered vehicle must carry the following protections:
This coverage protects you financially if you are at fault in a collision that causes injury, death, or property damage to others. Ontario law requires a minimum of $200,000, but most drivers purchase higher limits for better protection.
If another insured driver is at fault for a collision, DCPD covers damage to your vehicle, its contents, and loss of use. This applies only when the accident occurs in Ontario and involves at least one other insured vehicle.
This covers you and your family if you are injured or killed in a collision caused by an uninsured or unidentified driver. It also applies to damage to your vehicle caused by such drivers.
These core coverages apply equally to EVs and gasoline cars. Optional protections such as collision and comprehensive coverage remain available for both, and many EV owners choose them given the high value of electric models.
Although EVs share the same legal requirements as other vehicles, their design and technology introduce unique insurance considerations.
EVs often cost more upfront than comparable gasoline cars. A higher purchase price usually translates into higher replacement costs if the car is written off after a collision or theft. Insurers take this into account when calculating premiums.
EVs contain advanced technology and rely on high-voltage battery systems. Repairs frequently require certified technicians, special tools, and manufacturer-specific parts. This can raise labour and parts costs, which in turn may affect premiums. Even minor damage near the battery compartment can result in costly repairs or a total loss designation.
The battery represents a significant share of an EV’s total value—sometimes up to 40 per cent. In most cases, it is insured as part of the vehicle. However, if the battery is leased separately, you may need to confirm that your policy extends coverage to leased components. Some insurers may offer endorsements specifically addressing battery protection.
Home charging stations usually fall under home insurance, not auto insurance. This means that damage to the charging unit, fire hazards, or liability for electrical accidents are normally handled through your property policy. Informing your home insurer about the installation of charging equipment is essential. Some drivers also choose to increase liability protection because of the added electrical load.
Many EVs come with advanced driver-assistance systems, such as lane-keeping assist, adaptive cruise control, and automatic emergency braking. These systems can reduce collision risks, but repairing or replacing their sensors and cameras can be expensive. Insurers factor these repair costs into their rates.
Running out of battery differs from running out of fuel. Some insurers include specialised roadside assistance for EVs, such as towing to the nearest charging station. This type of coverage can provide peace of mind, especially in areas with limited charging infrastructure.
This optional endorsement is particularly valuable for new EVs. It guarantees that if your car is written off or stolen within a set period, you receive the full purchase price or replacement cost rather than a depreciated value. Since EVs often carry higher initial costs, this protection can be financially significant.
Repair times for EVs may be longer than for conventional cars because of limited parts availability and technician expertise. Loss of use coverage ensures that you have access to a rental vehicle, public transit reimbursement, or ride-share credits while your EV is in the shop.
Several factors determine your insurance premium, regardless of vehicle type. For EVs, these standard factors combine with EV-specific risks:
Insurance costs for EVs vary widely depending on the model, driver profile, and location. Some EVs carry higher premiums than gas vehicles because of expensive parts and repairs. Others may benefit from lower premiums because insurers reward drivers for adopting green technology and because many EV models feature strong safety ratings.
On average, annual EV insurance costs in Ontario range from modestly below to somewhat above equivalent gasoline vehicles. This variation underscores the importance of obtaining multiple quotes and considering optional endorsements.
Confirm that your policy meets Ontario’s legal requirements, including third-party liability, DCPD, uninsured coverage, and accident benefits.
Consider collision and comprehensive coverage to protect against theft, fire, and non-collision damage.
Ask about endorsements specific to EVs, such as battery protection, loss of use, or waiver of depreciation.
Notify your home insurer about charging station installation to ensure proper property protection.
Compare multiple quotes to identify the most cost-effective policy for your vehicle model and personal profile.
Review discounts for EV ownership, safe driving, or policy bundling.
Work with insurance professionals who understand EV-specific repair networks and claims processes.
As experienced car insurance brokers in Toronto, we compare coverage from multiple reputable insurance providers to ensure you receive a policy that is tailored to your specific needs and budget. Whether you own or lease your car, we can help you protect it with the correct coverage. We will help you find the cheapest auto insurance and explain each term of your policy in detail, so you can make an informed decision. From standard auto insurance or specialized coverages, we will help you find the best coverage based on your needs. We can help you find the best coverage for high-risk cards, commercial cars, motorcycles, luxury or vintage cars. To know more, get in touch with us.
Posted May 29, 2025