Does it cost more to insure an EV in Ontario?

As electric vehicles grow more popular in Canada, you may be wondering if they cost more to insure compared to gas cars.

EVs face different challenges compared to gas cars, particularly regarding repair costs.

Toronto-based insurance rate comparison website MyChoice said in a report this week that EVs are often more complex to repair because of their advanced components.

Batteries and sensors are expensive and some parts used to fix EVs may not always be readily available, the report said.

Additionally, MyChoice said, “EV prices fall more quickly. Due to their high repair costs, damaged EVs are more frequently written off as total losses than gas vehicles.”

With this in mind, does it cost more to insure an EV?

It depends, MyChoice found.

They analyzed more than 60,000 auto insurance quotes in Ontario collected through its website and compared multiple models across three categories: Compact/Entry, Compact SUV, and Luxury SUV.

They used a driver profile of a 35-year-old man or woman who is fully licensed, has a clean driving record, owns their car outright, and is looking for both comprehensive and collision coverage.

Here’s how insurance rates compare:

Compact / Entry

In this category of vehicle, MyChoice found that EVs are more expensive to insure:

“The Tesla Model 3 costs about $223 more per year to insure than the Honda Civic, while the Nissan LEAF is roughly $340 more expensive than the Civic,” it said.

“The Model 3 costs about $87 more than the Toyota Corolla and roughly $94 more than the Mazda 3,” the report added.

“This shows that even when EVs compete directly with popular, mainstream sedans, their insurance premiums remain higher.”

Compact SUVs

When it comes to compact SUVs, the picture is “more mixed,” MyChoice said.

Here’s a look at some comparisons:

The Tesla Model Y is around $322 more expensive to insure than the Subaru Forester. It’s also $209 more than the VW Tiguan.

However, it’s $97 cheaper to insure the Tesla Model Y than the Toyota RAV 4.

“The Model Y still sits toward the higher end of the segment, even if it narrowly undercuts one of the most popular gas SUVs in Canada,” MyChoice wrote.

Luxury SUVs

The luxury SUV segment is where EVs may actually be cheaper to insure compared to gas vehicles.

For example, MyChoice found that the gas-powered Audi Q7 is $75 more per year compared to the Audi Q8 e-Tron.

“It shows that insurance pricing isn’t driven purely by powertrain type,” the report said.

Other types of luxury SUVs were also compared. In these cases, the gas-powered vehicles are “dramatically more expensive” to insure, the report said.

The BMW X5 costs around $1,363 more per year compared to the Tesla Model X.

The Mercedes GLE is about $1,050 more.

“At this level of the market, insurance pricing is driven far more by vehicle price, theft risk, and repair costs than by fuel type alone,” the report said.

Overall, MyChoice said that while it’s often more expensive to insure EVs, that isn’t always the case. It can vary.

“In most mass-market segments, EVs still carry higher premiums, but in luxury categories, the relationship can reverse entirely,” the report said.

MyChoice CEO Aren Mirzaian added: “What this shows is that EV insurance isn’t ‘always higher’ or ‘always lower.’ It’s model-specific, and in some cases the difference exceeds $1,300 per year between comparable vehicles. That makes insurance one of the most important hidden costs of EV ownership.”

In cases where insurance premiums are higher for EVs, that could partially offset savings on gas or via government incentives.

“EVs still make financial sense for many Canadians, especially when long-term operating savings are considered. However, insurance pricing needs to be treated as a core part of the total cost of ownership, not an afterthought, when deciding whether to go electric,” MyChoice said.

For more information and to see tips on how to lower your insurance costs, visit the MyChoice website.