The hidden insurance savings of driving an electric vehicle

You may have seen more electric vehicles on Canadian roads recently. With more than 115 EV models now available and the federal government aiming for all new vehicle sales to be 75% by 2035¹, switching to electric is getting easier and more attractive. What many people don’t realize is that driving an EV can also help you save on auto insurance.

Many major insurance companies now offer discounts for electric and hybrid vehicle owners, recognizing that these cars often have lower risks and are better for the environment.

Whether you already drive an EV, are thinking about switching, or just want to know how electric vehicles fit your budget, learning about insurance benefits can help you decide. In this article, we'll break down the insurance discounts available to EV owners and show you the full picture of electric vehicle savings.

Canada's electric vehicle transition is underway

The federal government is shifting its approach to EV adoption by repealing the previous EV availability standard and replacing it with a new greenhouse gas emissions standard for vehicle model years 2027–2032. Under the updated targets, at least 75% of new vehicle sales must be electric by 2035, increasing to 90% by 2040¹.

According to the Canadian Vehicle Manufacturers’ Association, more than 115 EV models are now available in Canada. Options range from small hatchbacks to pickup trucks and SUVs with different drive types.

With this growing selection and Canada's commitment to zero-emission vehicles, now is an ideal time to explore how EVs can benefit your budget.

How electrical vehicles can help you save on auto insurance

Many Canadian insurance companies now offer discounts for electric and hybrid vehicles, making it more affordable to switch to zero-emission driving.

Some carriers offer up to 10% off your auto insurance premium if you drive an electric vehicle. If you’re driving a hybrid, you may qualify for discounts of up to 5%. These savings typically apply to both principal and occasional drivers on your policy.

Some insurance providers offer extra benefits just for EV owners such as subsidy incentives to purchase a new electric vehicle if you experience a covered total loss on your gas-powered or hybrid vehicle.

Understanding the true cost savings of owning an EV

Insurance discounts and benefits are just part of the savings you get with an EV. When you look at all the costs, the financial benefits are even greater.

Lower fuel costs

The Government of Canada reports it can cost five to ten times less to charge an electric car than to fill up with gas or diesel for the same distance. For someone driving 20,000 kilometres a year, that’s about $2,000 in fuel savings each year.

Lower maintenance costs

The Canadian Automobile Association estimates that EV owners save 40% to 50% on annual maintenance costs compared to gas-powered vehicles. Electric cars typically have fewer moving parts than other vehicles, and most don’t need oil changes, engine tune-ups, spark plug replacements, or engine air filter changes. 

Long-term cost advantage

A study by Clean Energy Canada helps put these savings into perspective. They compared a small electric hatchback ($39,000 retail) with a similar gas-powered model ($30,000 retail) over ten years. The total cost of owning the electric car—including purchase price, rebates, running costs, maintenance, and resale value—was less than $49,000, while the gas car cost over $80,000. That’s a difference of more than $33,500 over ten years.

Government rebates

Several provinces offer rebates of up to $5,000 when you purchase a new, qualifying electric vehicle. Check your provincial government website or ask your Orbit broker about available incentives in your area. 

When you combine these rebates with lower fuel and maintenance costs, most EVs reach their cost break-even point within five years.

What you need to know about EV insurance coverage

Insuring an electric vehicle is similar to insuring any other car, but with a few specific additions to address EV technology.

Your standard auto insurance—liability, collision, and comprehensive—still applies. 

The main difference is that there are special coverages for electric vehicle parts:

• Coverage for loss or damage to your vehicle’s battery pack.
• Protection for your home charging station.
• Liability coverage for incidents involving your battery.

These additions ensure you're protected for situations unique to EV ownership.

Review your auto insurance for EV discounts

If you’re switching to an electric or hybrid vehicle, it’s a good time to review your auto insurance policy.

Contact your insurance broker as soon as you buy or lease your EV. Many insurance companies need proof that your vehicle qualifies for a discount, so have your registration and model details ready. Your broker can tell you which discounts apply and make sure you get all the savings you’re eligible for.

If you already drive an EV but aren’t getting a discount, contact your insurance company. Some insurers apply EV discounts automatically, but others require you to request them.

Switching to electric is good for your wallet

Switching to an electric vehicle brings more than just fuel savings. With insurance discounts of up to 10%, lower maintenance costs, and thousands saved on fuel each year, the financial benefits add up fast. As Canada moves toward zero emissions, early adopters are already enjoying these perks while helping reduce emissions and improve air quality.

Talk to your home insurance provider about EV charging station coverage, and have a professional electrician handle installation.

Whether you’re ready to switch or already drive an EV, reviewing your auto insurance can help you get every available discount. Contact an Orbit insurance broker to review your policy. 

Want to see your auto insurance options? Request a quote from Orbit Insurance Services to find out how much you could save with an electric or hybrid vehicle. Our brokers know EV insurance and can help you get the right coverage at the best price. We’re here to help you make smart choices and save more.

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1.    BNN Bloomberg