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Does it cost more to insure an electric or hybrid vehicle?

Electric and hybrid vehicles have become popular options for many people. StatsCan reported over 50,000 registered ZEVs in Canada in 2020. According to a survey by KPMG in February 2021, likely seven in ten Canadians planning to buy a new car in the next five years will buy an electric or hybrid vehicle.

With the growing interest in emission-free vehicles, the demand for vehicle insurance for electric vehicles is also increasing. In March of this year, LowestRates.ca looked at 146 percent more than in the previous year in the number of drivers who search for EV car insurance deals on their website. With generous incentives in British Columbia and Quebec, it’s no surprise that more and more people are in the green car market.

But how does owning one work Electric or hybrid vehicles affect your car insurance rates?

Insure electric cars against gasoline cars

Insuring an emission-free car is pretty similar to insuring any other type of car.

“We wouldn’t treat the car any other way,” says Sara Caruana, Service Team Leader at DirectRate approx.

Whether the premiums would be higher depends largely on the model of the car, not its fuel source.

The more expensive a vehicle is to replace, the more expensive the insurance is usually. Batteries for electric vehicles, e.g. are expensive to replace in the event of a collision. You may also need more specialized repair services. This could allow you to pay a slightly higher premium.

“I strongly recommend that all of our customers get an insurance quote from their brokerage office before buying a vehicle to ensure that the customer has budgeted for the cost of the new vehicle along with the cost of insurance,” says Caruana. “If the customer can get the VIN number of the vehicle they want to insure, the brokerage office can provide a more accurate quote instead of just relying on the year, make and model.”

Some electric vehicles are very expensive. For example an expensive car like that The Tesla Model S would likely meet the limits of some carriers for high quality vehicles – however, this has nothing to do with the fuel source, but more to do with the very expensive parts that need replacing and / or servicing.

However, other non-luxury brands of electric vehicles are cheaper, and these cars could result in lower premiums than higher quality models.

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How to save money on hybrid or electric vehicle insurance

“Really, there is nothing else the consumer needs to consider other than perhaps asking, ‘Hey, do I get an extra discount on this hybrid or this electric vehicle?'” Says Caruana.

For example: Both TD Insurance and Aviva offer a “green vehicle discount” of 5 percent on vehicle insurance for electric or hybrid cars. You don’t have to do any special paperwork to qualify; Once the insurance broker or insurance broker enters your chassis number, it should automatically apply.

When buying a zero-emission vehicle (or any other vehicle) be sure to look for insuranceso that you can get the lowest price.

Insure an electric or hybrid vehicle

Many people choose to buy hybrid electric vehicles because the standard versions do not need to be charged and therefore do not require the infrastructure of an electric vehicle. Instead, they are charged by so-called regenerative braking, whereby a generator stores electricity when braking or coasting, which can be used later.

Whether you choose hybrid or fully electric does not affect your insurance discount. Insurance companies make it clear that the discount applies to all emission-free vehicles, i.e. both hybrid and electric cars.

LowestRates approx is a free and independent price comparison website that enables Canadians to compare prices from over 75 vendors on a variety of financial products such as auto and home insurance, mortgages, and credit cards.

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