How much are Canada’s cheapest EVs to insure?

EVs aren’t new to the market, but they are gaining traction due to their lower running costs, environmental benefits, and other features. While some EVs on the market today can run a little pricier, there are models that are more affordable. But how much do these cost to buy car insurance for? 

Some major car manufacturers are ramping up the production of EVs, with General Motors promising to only make electric vehicles by 2035, Ford stating that all its European vehicle sales will be electric by 2030, and VW declaring that 70% of its sales will be electric by 2030. Luxury brands, like Jaguar, Volvo, and Lotus are all making similar promises, dedicating all or the majority of their sales to electric by a certain date. This isn’t pertaining to a fad or trend, but rather it’s related to the gradual worldwide eventual ban of petrol and diesel-powered vehicles. Many countries are setting targets to replace their current gas-powered vehicles with EVs as part of a larger initiative to reverse climate change. For example, Canada’s own EV mandate has required that all sales of passenger cars, SUVs, crossovers, and light trucks be either hydrogen-powered, electric, or hybrids by 2035. 

But this doesn’t really answer the question: should you buy an EV? Well, right now EVs may still present an overall higher upfront cost than gas-powered alternatives, and are generally less available at your average dealership, but they are gradually becoming more commonplace. Public charging stations aren’t nearly as widely available as gas stations, but availability may increase with Canada’s EV mandate for 2035. 

The perks of buying EVs? EVs can cost less to maintain, present less stress on the environment due to limited CO2 emissions, are cheaper to fuel, and often come with the latest technology. Plus, with the possibility of gas-powered cars being phased out in the future, EVs may become the more widely available option in years to come.  

Before we get into insurance costs, let’s see which EVs rank as most affordable in Canada: 

Check out a breakdown of each vehicle by power, battery size, and estimated range on Driving.ca for a more detailed comparison that goes beyond price. 

Does “cheap car” always equal cheap insurance? Not necessarily. While the value of the car is a significant factor in what it will cost to insure, several other factors also play a role in determining the overall cost of your coverage. 

Cheap cars may not necessarily have the advanced safety features of more expensive vehicles, which can translate to higher insurance premiums. You’ll want to ensure your EV has good safety ratings—for your wallet, and your peace-of-mind! 

Just because an EV is affordable, doesn’t mean it’s cheap to repair. If parts are in high demand for repairing damaged EVs but in low supply, they may cost more to repair. This can translate into a higher insurance premium as well. Also, some mechanics will charge more for repairing EVs due to the specialized skills required. 

Finally, usage, demographics, driving record, and more all also influence your insurance premiums. If you’re a high-risk driver, having a cheaper EV won’t necessarily lower your rates. While the car’s model and make are significant factors, they’re just one piece of a much bigger pie.  

 We ran insurance quotes for Canada’s cheapest EVs using four fictious drivers. All our drivers are from Whitby, ON and have a clean driving record with the same levels of coverage, limits, and deductibles.

SUVs, minivans, and smaller pickups often come with smaller insurance price tags than other types of cars. Generally, unsafe cars, cars with more powerful engines, and extras will cost more to insure. Overall, EVs tend to cost more to insure than gas-powered cars as well.  

That said, insurance costs between different makes and models of cars can range from $5 to hundreds of dollars. While it’s important to consider insurance costs, especially if you’re managing a tight budget, you should also choose the car that best fits your lifestyle.  

If you’re deciding between a few options, give Mitch a call and our insurance brokers can run quotes for the different vehicles so you know how much insurance premiums will be. Different insurance companies will evaluate EVs on varying levels, so finding the best car insurance company in Ontario for your chosen electric vehicle can be tedious. We can help!

The name of the game with Mitch Insurance is affordable insurance. You don’t have to pay an arm and a leg for great coverage. Our brokers will compare rates from some of the top providers to help you find a great price—for your EV or otherwise! 

Give us a call today.