If you're thinking about buying a hybrid or electric car in the near future, there are a lot of issues to consider. One that often goes overlooked is the matter of car insurance. Insurance is, of course, a legal requirement throughout Canada - so will buying an electric or hybrid car affect your premiums?
The answer is basically 'yes and no.' So, let's talk a bit about the current insurance situation for hybrids and EVs, based on what we've seen among our sales and customers.
The short version is this: in general, there isn't much difference between insuring an EV or hybrid, compared to internal-combustion engine (ICE) vehicles. However, there are a few wrinkles.
Insurance rates are set by several factors, chief among them being the likelihood of an accident occurring. These odds don't change much depending on whether you're driving an ICE or a newer eco-friendly vehicle. The most important factor in determining your insurance rates will be your own demographics and your past driving record. This won't change if you buy hybrid or electric cars.
Likewise, if you're pondering whether to buy a standard hybrid or a plug-in hybrid, this won't make much difference to your insurance payments.
However, another factor is cost. Generally speaking, the more expensive a car is, the more expensive it is to insure. Since EVs and hybrids still typically cost more than ICE vehicles, your premiums may be a bit higher due to that. The good news here is that as alternative fuel vehicles become more commonplace, their prices will come down, and the cost of insuring them will follow.
You might actually see your insurance premiums go down over time if you drive your electric or hybrid cars for long enough.
Finally, it's worth mentioning that some ecologically minded insurance companies do offer special rates or discounts for people driving EVs and hybrids. These bonuses are entirely at the insurance companies' discretion, of course. It's also rare for them to fully offset the costs of insuring a more expensive vehicle.
That said, if you are looking to buy eco-friendly cars, it would be a good idea to investigate every insurance company you can beforehand. Try to line up the best rates you can, and even discuss which hybrids or EVs they'd recommend for lower rates. Switching providers could easily end up saving you money, in this case.
We are Brockville's top choice for Toyota vehicles, including a full line of Toyota EVs and hybrids. Toyota has long been at the forefront of alt-fuel car research and manufacturing, and now sell some of the best and most reliable eco-friendly cars on the market. Combine that with our world-class repair shop and customer service, and it's no wonder people come back to us time after time, whenever they need excellent Toyota vehicles and parts.
Feel free to stop in any time to test drive your next Toyota!