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May 22, 2021

Car insurance cheaper for electric vehicles: report

In a perfect world, we would all drive electric cars, stopping in the nations Essos and Petro-Canadas for chips and chips alone.

But certainly our gas station needs are entirely pricier than just the cost of snacks, and a large part of that is because many Canadians can’t afford an electric car.

At a new tag falling in the range of $40,000, electric cars have undeniable benefits but simply cost too much for the average driver. In addition to the savings on fuel, more’s gotta give before Canadians en masse will get behind the wheel of an electric.

Could this help push the issue? According to new figures, auto insurance costs less for drivers of electric cars.

A few insurers out of the U.S. have been rolling out electric-centric campaigns lately, lowering the cost of car coverage for electric drivers.

*Bing: How does an electric engine work?

Hartford Insurance, for instance, announced last month it will discount coverage by five per cent on electric cars nationwide. According to Edmunds.com’s True Cost to Own estimates, the average premium on 2012 Volt owners is about $1,452 a year, compared to the gasoline-powered 2012 Cadillac CTS, which costs about $2,024 each year on average.

Sounds like a steal, though perhaps there’s an explanation why insurers are willing to discount coverage to electric car drivers.

Hartford Insurance said its five per cent discount is to support environmental sustainability, but the gritty truth is that maybe drivers of electric vehicles are of less risk to cover for insurers.

“When you look at electric vehicle owners, you probably have a pretty careful bunch there,” Jack Nerad, market analyst at Kelley Blue Book, told USA Today. “They’re probably pretty mature, and they’re not the young twentysomething male who gets into the most fights and has the most car accidents.”

By Jason Buckland, MSN Money



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Gordon PowersGordon Powers

A long-time fund company executive, Gordon Powers now heads up the Affinity Group, a financial services consulting firm. Gordon was a personal finance columnist for the Globe & Mail for many years, has taught retirement planning...

Jason BucklandJason Buckland

The modern-day MC Hammer of money, Jason can often be seen spending cash that isn’t his with the efficiency of a Wilt Chamberlain first date. After cutting his teeth as a reporter for the Toronto Sun, he joined the MSN Money team with...