EV insurance costs in Ontario
Recent Canadian data shows EVs can cost roughly 30–40% more to insure than comparable gas vehicles, mainly due to higher repair and replacement costs. In one analysis, average EV premiums were about 36.8% higher than gas cars nationwide.
For specific models, a Tesla Model 3 has been quoted hundreds of dollars more per year than popular gas cars like the Honda Civic or Toyota Prius, reflecting expensive batteries and advanced tech. However, some mainstream EVs are closer in price to gas vehicles, so it is not automatically more expensive for every model.
Why EVs can be pricier to insure
Insurers in Ontario look at repair severity, claim history, and where you drive, more than just whether the car is electric or gas. EVs tend to be costlier to repair because:
Battery packs are expensive and can total the car after what looks like a “minor” collision.
Specialized parts and technicians are harder to source, which drives up claim costs and repair times.
Advanced safety tech and sensors in bumpers, windshields, and roofs are expensive to recalibrate or replace.
At the same time, Mississauga and Toronto already rank among the highest auto insurance areas in Ontario because of dense traffic, higher collision frequency, and auto theft, so any vehicle that is costly to fix will feel that surcharge even more here.
A broker’s perspective: Mississauga & Toronto
As a local auto insurance broker serving Mississauga and Toronto, I see two EV trends all the time: drivers underestimate premiums, and they over‑rely on online quotes that do not tell the full story. Postal code, commute (401, QEW, Gardiner, Hurontario), parking situation, and your driving record can swing EV premiums by thousands per year in the GTA.
The upside: many insurers now offer “green vehicle” or hybrid/EV discounts that can offset part of the extra cost. You may also save overall by bundling your EV with your home or condo policy and using usage‑based telematics programs. A quick broker comparison across multiple insurers usually gives EV drivers far more realistic options than a single direct‑writer quote.
If you are thinking about buying an EV, it is smart to check insurance before you sign the bill of sale so you are not blindsided by a higher premium. You can start that conversation or request a quote through my auto insurance page here: www.katherinele.ca/autoquote.[14]
FAQs: EV insurance in Mississauga & Toronto
1. Are electric cars more expensive to insure than gas cars in Ontario?
Often yes, especially for higher‑end EVs, but not always for every model; premiums depend on repair costs, safety features, and your driver profile.
2. Why are EV insurance rates higher in Mississauga and Toronto?
These cities have higher accident and theft rates, plus more severe claims, which are amplified when the car itself is expensive to repair or replace.
3. Do EVs get any insurance discounts?
Some insurers provide green or electric‑vehicle discounts and additional savings for safe driving programs, multi‑vehicle policies, or home‑auto bundles.
4. How can I lower my EV insurance premium?
Compare quotes through a broker, increase your deductible, install winter tires, enroll in telematics, and make sure your coverage is optimized—not overloaded with extras you do not need.
5. Should I talk to a broker before buying an EV?
Yes; checking with a broker first helps you understand the true ownership cost of specific EV models in Mississauga or Toronto and avoid payment shock at renewal.
For more local tips on managing rising auto insurance costs, you can also read my Mississauga and Toronto savings guide here: www.katherinele.ca/blogcontent/2025/10/30/10-proven-ways-mississauga-amp-toronto-drivers-save-big-on-home-and-auto-insurance.[12]