Is EV Insurance More Expensive?

Currently, yes, and by a meaningful margin. Recent Canadian insurance data shows EV owners paying about 37% more per year for auto insurance than comparable gas vehicle owners, a gap that has been widening rather than narrowing. It’s an important number to factor into your budget before buying, since it can offset a real portion of the fuel and maintenance savings EVs otherwise offer.

$3,131Average annual EV insurance premium in Canada

$2,289Average annual gas vehicle insurance premium

36.8%The resulting EV insurance premium gap

This figure comes from Sussex International data covering a full year of Canadian premiums and claims, and it lines up with other industry analyses in the same range. It also varies by province, insurance data shows Alberta running highest and New Brunswick lowest among recent comparisons, so your own quote will depend heavily on where you live in addition to the vehicle itself.

Why EVs cost more to insure right now

Battery replacement cost

The single biggest factor

An EV’s battery pack is typically its most expensive component, and replacement costs can run into the tens of thousands of dollars. Even moderate collision damage can sometimes lead an insurer to write off a vehicle rather than repair it, which pushes premiums up across the board.

Higher vehicle value

More expensive to replace

EVs often carry a higher purchase price than a comparable gas vehicle, and insurance premiums scale with the cost of replacing the vehicle.

Thinner claims data

Insurers have less history to price against

EVs still represent a relatively small share of vehicles on Canadian roads, which means insurers have less historical claims data to draw on than they do for gas vehicles, and less certainty tends to translate into higher premiums.

Limited specialized repair network

Fewer shops, higher repair costs

Repairs that require EV-specific training and equipment are concentrated in fewer shops than general gas vehicle repair, which can push up both repair costs and repair time.

What you can actually do about it

Get quotes from at least three insurers specifically for the EV model and trim you’re considering, before you buy rather than after. Pricing variance between insurers is wider for EVs than for gas vehicles, and some insurers price more competitively for EVs than others. Some insurers, including CAA, offer discounts specifically for electric or hybrid vehicles, so it’s worth asking directly rather than assuming a standard quote reflects your best available rate.

💡 Tip: Factor insurance into your total cost comparison, not just purchase price. A federal or provincial rebate is a one-time benefit; a higher annual insurance premium is an ongoing cost that compounds over the years you own the vehicle. Our EV vs. gas calculator can help you weigh the two together.

⚠️ Note: The insurance gap is a current market condition, not a permanent feature of EV ownership. As claims data accumulates and the specialized repair network expands, this gap may narrow over time, but it’s a real cost today and shouldn’t be assumed away when budgeting for a purchase.

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