Electric Car Insurance Cost, Rates & Quotes Comparison in Ontario

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You may be behind the wheel of your swanky sedan waiting for the lights to change and counting backward. Just then you notice an electric car pull up next to you, very quietly. Yes, you have to agree that electric cars make lesser noise than regular cars. You wonder for a moment how much that car must cost and how long will the battery last. Well, electric cars may be expensive than a regular car. The main cause is the expensive battery that can provide a very limited range. These batteries are very costly and may end up costing more than a quarter of the price of the electric car. This could be a major reason for the slow boost in sales of electric cars.

Being eco-friendly could be a reason for some drivers to own an electric car. There are also those who choose to convert the engine transmission from gas to electricity. These kinds of converted electric cars do need to be inspected before setting up insurance policy by an electric car specialist. Or it could be the reduced long-term costs associated with owning one. It is possible to recover the expensive cost of the electric car in the initial few years. This is done by saving on gas and from Ministry of Transportation of Ontario programs such as Modernized Electric Vehicle Incentive Program (EVIP). In Ontario, the electric cars that display green license plates have certain privileges. These cars can be driven by a lone passenger on HOV lanes and 400 series highways.

The EVIP program has been in effect since February 2016 and is geared towards:

  • Making electric cars more affordable
  • Cap incentives for luxury cars
  • Give incentives to electric cars with bigger engines and larger capacity to carpool

What Is The Difference Between Standard Car And Electric Car

You do see many electric cars on Canadian roads but not quite popular as regular cars. As per most insurance companies, the insurance for both could be more or less the same. There is not much data to look back in time while calculating insurance cost for electric cars. In fact, the electric car insurance may turn out to be cheaper due to various factors that insurers look at. Some of these factors include the cost of maintenance and repairs, impact in a collision or claims statistics.

The electric car does have fewer parts when compared to a regular gas engine car. In a standard car, the powertrain consists of many parts to guzzle the fuel, inject the fuel and spark the ignition to get the car in motion. There are many parts that an electric car may not have. This is simply because they are not needed in an electric powertrain such as:

  • Alternator, Clutch, Belts
  • Spark plugs, Wires, Radiator
  • Fuel injectors, pumps

The braking system in an electric car works differently and is very advanced. Regenerative energy is used to restore energy in an electric car. On the other hand, friction is turned into kinetic energy on a standard car for recapturing lost energy while braking. This also means that the electric car would have less wear and tear on the brake pedals as there is less friction involved. The replacement of these parts could be very frequent for a standard car due to more usage of rotors and brake pads. Maybe you have fewer trips to the garage for repairs for an electric car in contrast to a regular car.

How Are Premiums Calculated For Electric Cars

Insurance companies look into many factors while calculating premiums for the electric car such as the type of engine and value of the vehicle that is vital. An electric car with a battery cell and a motor is different from one that has a gas powered engine and a battery. There are many hybrid cars too with an option of using a gas powered engine or battery. There are other hybrids that allow the use of both. So, insurance companies quote premiums based on how a car engine is powered.

In general, it has been observed that drivers of green cars are very eco-friendly are also mindful of road safety and traffic laws. With the limited data available, it does show that electric cars have fewer claim statistics for a crash. Due to this reason, there are many insurance companies who give reduced insurance rates for electric cars due to less frequency of claims. It is also notable that when involved in an accident, it could be more expensive to replace parts of electric cars. But in the long term, the number of claims may be much less and justifies the insurance premiums charged for electric cars.

How Can You Save On An Electric Car

You may have paid a hefty price for your electric car while you drive around showing how much you care for the environment. If you own an electric car, you may save much on maintenance or replacement of parts due to less wear and tear. That is if you handle your electric car with reasonable care.  There are also many government initiatives such as tax breaks to promote electric or hybrid cars.

There are also many insurance companies that actively promote eco-friendly initiatives. These insurers give discounts to electric car insurance holders as an incentive. This helps the insurance companies to retain their corporate principle towards environment conservation. These are the same insurance companies that spend millions of dollars as part of their global green initiatives and programs. So, on a grass root level, the insurance companies encourage the purchase of electric cars. They do so by reducing insurance premiums charged for such cars and special discounts.

By keeping a clean record and limiting the mileage you may be able to save on insurance and lengthen the life of your electric car. The electric cars may need specialized insurance that works on different criteria. So it is important to do your research and know the difference. When you are shopping around to insure your electric car you may check our car insurance calculator to get many quotes with different companies. It may save your time.

List Of Top 10 Electric Cars With Low Insurance Rates

1.     Tesla Model S 85 kWh

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This is a sedan type of electric car. The powertrain is all electric and in just 2.7 seconds this car can speed up to 100 kph. It also features the bioweapon defense mode to filter pollutants and germs from cabin interior. This car also comes with full self- driving hardware with great safety features and dual motors.

 2.     Chevrolet Spark EV

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This electric car runs on lithium ion battery that cuts down emissions from tailpipes. It also has an electric propulsion system that gets its speed up to 60 mph in just 7.2 seconds. The battery can be quickly recharged in any DC fast charging station in just 20 minutes.

 3.     Nissan Leaf

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This electric car can seat up to 5 people with 107 hp engine capacity. This car has 0 emissions standard and ranges up to 107 miles in just one charge with 30 kWh lithium-ion battery. There is also a 24 kWh battery option that gives a range of 84 miles.

 4.     Fiat 500e

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This is a car well suited to zipping past in the city and has EPA range at 87 miles. The interiors may not be very roomy but just fine for short distances. It can speed up to 60 mph in just 8.4 seconds.

 5.     Smart Fortwo Electric Drive Coupe

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Parking can be a breeze with this tiny electric car. Zero emissions are also welcomed. As the name suggests, it is ok for 2 people. The engine has 75 hp and is powered by a magneto-electric motor with a range of 145 km.

6.     Mitsubishi i-MiEV

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This electric car could seat up to 4 people and comes with an EPA range at 62 miles. It is good for city driving for short commutes. It can speed up to 80 mph in 13 seconds and has an engine with 66 hp capacity.

 7.     Honda Fit EV

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This car is fit for efficiency and is fitted with a 92 kW electric motor with 123 hp engine.  Though discontinued this car is slated to be back in 2017 which will be called the Clarity Electric version.

8.     Ford Focus Electric

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This is a front wheel drive electric car with a 143 hp engine motor. The EPA range is at 76 miles with comfy interiors. It can speed up to 85 mph in 9.9 seconds.

 9.     Toyota Rav4 EV

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This car has a great EPA range at 312 miles and is powered by Mirai fuel cells. Zero emissions and speeds up to 60 mph in 7.2 seconds. This is an electric car with front wheel drive. The engine has an electric motor with 154 hp capacity. The driving range is decent at 103 miles and great cargo space at 73 cubic feet.

 10. Mercedes B-Class Electric Drive

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This electric car is powered by a lithium ion battery 132 kW electric motor. It has 177 hp with 251 torque pound-feet. It can speed up to 60 mph in 6.8 seconds and is spacious. The body panels are made of lightweight materials with very thin front wheels.


Resources:

http://www.mto.gov.on.ca/english/vehicles/electric/electric-vehicle-incentive-program.shtml

https://en.wikipedia.org/wiki/Electric_car

http://www.greencarreports.com/news/1107009_plug-in-electric-car-sales-for-oct-steady-before-bolt-ev-prius-prime-arrival

https://www.technologyreview.com/s/516961/how-tesla-is-driving-electric-car-innovation/

http://www.nytimes.com/topic/subject/electric-and-hybrid-vehicles

http://www.mto.gov.on.ca/english/vehicles/electric/green-licence-plate.shtml