Electric cars are in vogue. And Canada is not too far behind. Electric vehicles finally found the taste of Canadian customers in 2021. It shows a robust sale of 1.6 million such vehicles, depicting an increase of 6.5% from 2020.
The increase might be slow, but it is steady, and many analysts believe electric cars will rule the Canadian markets in the future. If you have already purchased an electric automobile and want to know about its insurance cost, here is everything.
1. The Make and Model
Insurance companies often analyze the make and model of the car to determine:
- What are the safety features, and to what extent to get damaged in an accident?
- What are the repair costs of the automobile?
- Are the replacement parts expensive?
- Most insurers use the CLEAR (Canadian Loss Experience Mobile Rating) system in Canada to determine how costly it is for the insurance of a particular car model.
- Manufacturers do a detailed analysis by checking everything from the probability of getting stolen to the disc brakes performance.
- The CLEAR score by a particular model of the car and the cost of insurance maintains a direct relationship with each other. Where:
- The higher the CLEAR score, the higher the cost of insurance and
- The lower the CLEAR score, the lower will be the cost of insurance
2. The Replacement Cost
It is a fact that the replacement cost of the parts of an electric vehicle is higher than a fuel-based car. As per a recent study, electric vehicle parts cost 20% more.
It prompts most insurance companies to charge a higher insurance premium as, upon a covered event, they will shell out more money in reimbursement.
3. The Repair Cost
Electric vehicles are still new and face a severe technician shortage. It causes the labor costs to go much higher. Further, in the events of collisions and accidents, the batteries installed in an EV usually get damaged and cost thousands of dollars to replace.
It also inflates your insurance cost for an electric car. You need to pay a much higher premium.
4. Personal Factors
Last, the cost of insurance also depends upon several personal factors, such as:
- What is your age?
- What is your driving history?
- How susceptible are you to meeting with an accident?
- What is your health history?
- Where do you mostly drive? – Is that a dangerous driving zone?
What Is the Average Insurance Cost?
As mentioned earlier, it all depends on the factors above. However, after analyzing several actual insurance bills and receipts, we have concluded that:
The average cost of insurance for an electric car in Canada is usually between $190 per month to $400 per month.
What Are the Various Coverage Types?
Well, every insurance policy is different and can cover varied claims. It all depends upon the type of policy chosen. Here is the list of some common coverages offered by the insurance companies:
|Third-party Liability||• Protects you financially from all the third-party claims, such as:|
a) Death of the other person involved in the accident/ collision
b) Bodily injuries sustained and
c) Car damage
|Accidental Cover||• You may hit a pedestrian and/or sustain an injury yourself|
• This policy gives you financial protection in such a situation
a) You get reimbursed for all the medical bills and
b) Get compensation for loss of income due to such an event
|Direct Compensation-Property Damage||• Gives you financial protection in case your car and the contents inside it have been damaged|
Is an Electric Car Financially Viable?
As we all know, electric cars are environmentally friendly and lead to zero-emission of heavy metals in the atmosphere. Thus, most governments encourage its usage by giving rebates and discounts.
For instance, the government of Canada offers a rebate of up to $5,000 on eligible electric cars.
It certainly lowers your cost of ownership. Somehow compensates you for paying a higher insurance premium. Hence, if you are determined to save the plant besides enjoying economical and cleaner rides, electric vehicles are a better option!