This article has been updated from a previous version.
Many automakers are committing to producing electric vehicles (EVs) in greater numbers in the coming years, including General Motors, Honda, Audi, and Ford. Currently, there are two categories of EVs available in Canada, both of which are considered zero-emission vehicles (ZEVs): battery-electric vehicles (BEVs) and plug-in hybrid-electric vehicles (PHEVs).
According to Statistics Canada, 5.2% of all new motor vehicles registered in Canada in 2021 were ZEVs, up from 2.2% in 2018. Of the ZEVs registered in 2021, 68.3% were BEVs and 31.7% were PHEVs, with both categories experiencing increases. In addition, the Government of Canada is working to meet a mandatory ZEV sales target of 100% for light-duty vehicles by 2035.
Though ZEVs tend to cost more than their gas-powered counterparts, they have significantly lower fuel costs, and in some places, can earn drivers rebates. However, provincial government incentives vary from province to province.
According to a February 2021 KPMG survey, seven-in-10 Canadians (68%) who intend to buy a new car in the next five years are leaning toward purchasing an all-electric vehicle or hybrid. However, so-called “range anxiety” remains problematic to the swift uptake of electric vehicles by Canadian drivers. The same study finds Canadians who say they will not buy one cite reasons such as concern over limited driving range (51%), a lack of charging infrastructure (50%), and battery lifespan (30%).
If you’re considering a ZEV, it’s also natural to wonder how much car insurance may cost for an all-electric or hybrid car. Below, we compare auto insurance premiums across BEVs, PHEVs, and gas-powered vehicles in three major cities in Ontario and Alberta to see how the costs stack up.
How do BEVs and PHEVs compare to gas-powered vehicles from a car insurance perspective?
To get an idea of the insurance premiums for nine models within each vehicle type, including the 2021 Chevrolet Bolt, 2021 Toyota Prius Prime, and 2021 Honda Civic, we created a profile of a 35-year-old male driver with a clean driving record looking for a policy with collision and comprehensive coverage in Toronto, Kingston, and London. We used the same profile for a driver in Calgary, Edmonton, and Lethbridge.
Using the same profile for each postal code, we compared premiums across a broad range of insurance providers using the RATESDOTCA auto insurance quoter.
Here’s how the approximate insurance costs break down if you drive one of the following vehicles and live in Toronto, Kingston, or London:
* – Estimated annual fuel costs are provided by Natural Resources Canada, and are based on the combined rating, a driving distance of 20,000 km, and forecast prices of $1.00/L for regular gasoline, $1.10/L for premium gasoline, $0.95/L for diesel fuel, and $0.15/kWh for electricity. For PHEVs, annual fuel cost values reflect a mix of electric mode and gasoline-only operation.
**Honda Clarity annual fuel cost as per 2021 fuel consumption guide.
Here’s how the approximate insurance costs break down if you drive one of the following vehicles and live in either Calgary, Edmonton, or Lethbridge:
* – Estimated annual fuel costs are provided by Natural Resources Canada, and are based on the combined rating, a driving distance of 20,000 km, and forecast prices of $1.00/L for regular gasoline, $1.10/L for premium gasoline, $0.95/L for diesel fuel, and $0.15/kWh for electricity. For PHEVs, annual fuel cost values reflect a mix of electric mode and gasoline-only operation.
**Honda Clarity annual fuel cost as per 2021 fuel consumption guide.
Some insurance providers offer discounts on car insurance policies for EVs. If your current provider does not, that’s reason enough to shop around and find one that does.
Since a few of the EVs featured have similar or even more affordable auto insurance premiums than gas-powered vehicles, in addition to lower fuel costs, EVs can make a good investment in either province. Though the purchase price may be higher initially, the long-term cost of EV ownership can be the cheaper —and greener — option.
Regardless of which vehicle type you own or choose to purchase, comparing car insurance rates across some of the top providers in Canada is the best way to ensure a cheaper premium.
We used the following parameters to find out the lowest premium available for each 2021 vehicle model (base trim used unless otherwise specified):
Interested in creating content with RATESDOTCA? Contact us at email@rates.ca.