Consumers increasingly concerned with EV insurance

Canadians are becoming increasingly interested in getting an electric vehicle (EV) for their next purchase on one hand, but consumers also seem concerned about the cost of insuring electric vehicles, according to data from rate comparison site My Choice.

Seventy-seven per cent of respondents in British Columbia and 74% in Ontario would consider buying an EV the next time they’re in the market for a vehicle, according to survey results from KPMG. Further to that, over three-quarters of millennials are looking at EVs for their next purchase (77% between 25-34 years old and 76% aged 35-44 years).

But cost, driving range and charging are often cited concerns that consumers have when it comes to EV uptake—and drivers are particularly concerned with the cost of insuring their green vehicle.

Drivers looking for EV insurance increased by 240% year over year and 89% in the last three months, according to a recent study by My Choice.

Consumers should also heed that insurance premiums depend on the model of the car, rather than the vehicle’s fuel source. The cost of replacing a vehicle is largely what determines the insurance cost.

Reasons that EVs may cost more to insure than gas cars include: replacement parts, electric vehicle batteries and specialized repair shops.

The basic insurance requirements for EVs are the same as any car, and include the mandated third-party liability insurance, accident benefits insurance, uninsured auto insurance, and direct compensation for property damage.

Add-ons may include collision insurance and comprehensive insurance that protects parked cars from flood or fire events.

However, certain policies may provide relief for EVs. “Some insurance providers provide green vehicle discounts for EVs so it’s important to ask,” said Aren Mirzaian, CEO of My Choice in a press release.

A comparison by My Choice shows the annual auto premiums for the following EV models:

Porsche Taycan (2021)- $2,123
Audi e-tron (2021)- $1,878
Tesla Model Y (2021) – $1,708
Tesla Model 3 (2021) – $1,670
Nissan Leaf (2021) – $1,389
Chevrolet Bolt (2021) – $ 1,387
Mini Cooper SE Electric Hardtop (2021) – from $1,342
Hyundai Kona Electric (2021) – $1,317