Electric vehicle owners often face higher insurance premiums than drivers of comparable petrol cars, which can deter potential buyers. Multiple reports point to a widening cost gap rather than improvement over time. In Canada, one cited comparison estimates that insurance for electric vehicles costs about 36.8% more than for gas vehicles, and the difference is reported to be growing.
The coverage also highlights the reasons insurers charge more for EVs. While exact causes can vary by insurer and region, higher repair and replacement costs—often linked to components such as batteries—are frequently cited as contributing factors. EVs may also have different risk profiles, including availability of parts and repair expertise, which can affect claims costs and insurer expenses.
Several sources describe efforts being explored to address the problem, including initiatives to improve access to parts and repairs, better data on EV claims and safety outcomes, and potential changes to how insurers price EV risk. The overall goal of these measures is to narrow the insurance premium gap and make EV ownership more affordable.
