Electric Vehicle Insurance: What You Need to Know

While they were still a brand-new trend just a few years ago, electric cars are now well established in the automotive landscape. 

In 2025, there were more than 440,000 electric and plug-in hybrid vehicles on the road in Quebec. This number is constantly growing, especially with rising gas prices.

In this context, insurance for electric vehicles is evolving too! Not so long ago, it could be more difficult to find auto insurance for an electric or hybrid car, whereas insurers are now well aware of the specific characteristics of this type of vehicle. 

In this article, we present an overview of the factors that influence rates and the best strategies for optimizing your insurance premium for your electric vehicle.

Is it more expensive to insure an electric car?

Insuring an electric or hybrid vehicle is often more expensive than insuring a gasoline-powered car. However, rates have changed significantly over the past five years.

Today, insurers have enough data on electric vehicles to adjust their rate schedules. These statistics are leading to a trend toward rate standardization and a narrowing of the premium gap between electric and gas-powered cars. 

Nevertheless, premium amounts vary greatly from one insurer to another, so it’s important to shop around.

In addition, many insurers offer a “green” discount to owners of electric or plug-in hybrid vehicles to encourage this eco-friendly purchase. An incentive that lowers your bill!

One thing is certain: the cost of your insurance will be more than offset by the savings you make on gas.

The main factors that influence insurance premiums

Several factors can influence the cost of electric car insurance. In addition to your vehicle’s make and model, here are a few other factors to consider:

1. Vehicle value: The main factor driving up premiums is often the higher initial purchase price of an electric vehicle, which increases its replacement cost. However, with the arrival of more affordable models that are closer in price to traditional vehicles, the price differences are less pronounced.

2. Repair costs: Repair costs are rising for all vehicles, but this trend particularly affects electric cars, as they often feature more sophisticated onboard technology. In the event of an accident, they are more likely to be declared a total loss than internal combustion engine vehicles.

3. Parts and labor: Parts, especially the battery, can be more expensive. In addition, skilled labor is still in short supply, which, combined with longer lead times, contributes to higher costs.

4. Safety: Paradoxically, driver-assistance technologies—often included in electric models—can help lower insurance premiums, since they statistically reduce the likelihood of accidents.

Essential coverage for electric vehicles

Basic auto insurance in Quebec is the same for electric cars and gas-powered vehicles. However, given the unique characteristics of electric and hybrid vehicles, it’s a good idea to add certain coverages to your insurance policy:

• Chapter B – Optional Coverage: In addition to liability coverage, comprehensive coverage protects against property damage to your vehicle in the event of an accident (collision, theft, vandalism, severe weather, etc.).
• Replacement Cost Endorsement: This coverage is highly recommended for vehicles of higher value. It ensures that, in the event of a total loss, you will receive the amount needed to purchase an equivalent new vehicle, without any depreciation. This endorsement is added directly to your insurance policy, but certain restrictions may apply.
• Replacement Insurance: While very similar to the replacement cost endorsement, replacement insurance is a separate policy that can give you more flexibility when purchasing a new vehicle in the event of a total loss.
• Battery Coverage: In the event of an accident, the battery is covered just like any other part of your vehicle. It’s always best to verify that your policy explicitly covers its replacement in the event of accidental damage.
• Roadside Assistance: Offered by many insurance companies, this option can be very handy for getting towed to the nearest charging station if your battery dies.
• Residential charging station: You must report your charging station to your home insurance provider to ensure it is covered.
• Extended vehicle rental: We recommend purchasing a rental car insurance rider. Make sure the coverage amount is sufficient, as repairs to an electric vehicle may take longer.

How can you get the best rate on insurance for an electric vehicle?

To save on your auto insurance, always compare quotes from multiple insurers. Premium differences can amount to several hundred dollars for the same risk profile.

That’s the advantage of working with an independent insurance broker who has a deep understanding of the unique features of electric vehicles. Like us!

At Assurances Multi-Risques, our team can shop around for you and guide you toward the best coverage so you can drive with confidence.

Summary

• Insurance for electric vehicles has evolved significantly in recent years, but there are still many disparities in prices from one insurer to another.
• Many insurers offer a “green” discount for the purchase of an electric or plug-in hybrid vehicle, which helps reduce the amount of your premium.
• It’s a good idea to add additional coverage to your auto insurance policy to ensure it’s tailored to the specific needs of an electric vehicle.
• It’s essential to compare quotes from multiple insurers. An insurance broker can shop around on your behalf and secure the best rate to protect your electric vehicle.