Considering purchasing an electric vehicle? You’re not alone.
Since Erie Mutual offers auto insurance for electric vehicles and with the popularity of electric vehicles on the rise (in 2024, there were 202,103 battery-electric vehicles and 68,882 plug-in hybrids registered in Canada), let’s discuss.
If you’re thinking about becoming the latest EV owner, it’s important to know how owning an EV may impact your auto insurance.
IS INSURING AN ELECTRIC VEHICLE THE SAME AS INSURING A REGULAR VEHICLE?
Yes and no.
Yes, insuring an electric vehicle (EV) is similar to insuring a regular gas powered vehicle when it comes to the basics, such as coverages (e.g. liability, collision, comprehensive).
However, there can sometimes be differences when it comes to things like risk assessment and coverage options.
DOES IT COST MORE TO INSURE AN ELECTRIC VEHICLE?
Compared to traditional gas powered vehicles, auto insurance for an EV can sometimes come with higher insurance premiums.
This is mostly due to the fact that EVs are (for now at least) more expensive than gas powered vehicles, which makes the replacement costs higher.
For us here at Erie Mutual Insurance, there are no different considerations or extra cost for insuring an electric vehicle vs. a traditional gas powered vehicle.
DOES IT COST MORE TO REPAIR AN ELECTRIC VEHICLE?
The repairs associated with electric vehicles can often come with a higher cost as well especially in terms of repair or replacement of their expensive battery systems.
IS THE BATTERY OF AN ELECTRIC VEHICLE COVERED BY AUTO INSURANCE?
Your battery would be covered under your auto insurance policy if damaged due to an insured peril.
For example, damage due to a collision or a comprehensive claim such as an accident, fire, theft or vandalism.
If you’re concerned about owning an electric vehicle in Canada because of our harsh winters, rest easy knowing that the batteries of most EVs are built to operate efficiently in cold weather.
The only impact you may notice is a 30% drop in range (2), so it’s extra important to keep it charged up.
DOES MY AUTO INSURANCE CHANGE IF I USE MY EV FOR RIDESHARING?
If you’re planning to use your electric vehicle for your gig with Uber or Lyft, then you’ll need a ride-sharing endorsement added to your personal auto insurance policy.
Let’s get technical: In Ontario, this usually means either OPCF 6A or OPCF 22.
In short, if you own or are planning to buy an electric vehicle, we can offer you the same comprehensive and affordable auto insurance coverage that we offer to gas powered vehicles.
Give us a call anytime or get a quote here.
Erie Mutual Insurance proudly serves the commercial insurance, farm insurance, home insurance and auto insurance needs of members throughout Southern Ontario including Haldimand, Niagara and Hamilton.
Please don’t hesitate to contact us with any questions you may have about this or any other topic related to your insurance.
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