Toronto, Ontario -- Canadian drivers are paying more to insure electric vehicles than gas-powered models, according to new data from Surex.
The insurance brokerage analyzed 12 months of quotes and found that, on average, EV owners pay 36.8 percent more for coverage than drivers of gas-powered cars. The average annual premium for an electric vehicle was $3,131.43, compared to $2,289.27 for a gas-powered model.
Higher replacement and repair costs are among the main factors contributing to the gap. Electric vehicles generally come with higher purchase prices and more complex components, including costly batteries that can lead to total write-offs if damaged.
The findings also showed regional differences. In Alberta, EV insurance averaged $3,342.93, compared to $2,344.19 for gas-powered vehicles. In Ontario, premiums were lower overall but the pattern held, with electric vehicle owners paying $2,932.72 versus $2,464.18.
Limited claims data, the scarcity of trained repair technicians, and higher parts costs can all affect pricing. While EVs often qualify for green-vehicle discounts and require less maintenance, those savings do not always offset the higher insurance costs.
Surex’s analysis suggested that as more electric vehicles enter the market and claims data becomes more robust, the insurance cost gap could begin to narrow.
