An electric car can save you money on maintenance and fuel. But owning an EV costs more than its sticker price, with one-time costs, regular expenses, and fees that may or may not apply.
When deciding if an EV is worth it, compare electric, gas, and hybrid vehicles. Also, find out what EV incentive programs are available in your region and if you can charge your EV at home. To explain EV ownership costs and the programs that may apply, we reviewed Natural Resources Canada’s charger-installation guidance, CAA’s EV cost guide, Transport Canada’s Electric Vehicle Affordability Program, and Quebec’s current new-EV assistance page.
What Are the Hidden Costs of Owning an Electric Car?
While electric cars have become more popular in the face of soaring gas prices, owning one comes with a new set of financial constraints that may not be immediately obvious. Let’s take a closer look at the factors you need to consider.
The Hidden Costs Of EV Ownership
| Cost type | Include | Possible offset |
|---|---|---|
| One-time | Tax, freight and PDI, fees, charger, permit, electrician, panel or service work, trenching, condo approval | Purchase incentive, charger rebate, existing suitable outlet or load management |
| Recurring | Loan or lease cost, electricity, public charging, insurance, registration, tires, parking and subscriptions | Lower energy cost and fewer routine service items |
| Contingent | Towing, collision repair, rental car, battery diagnosis, out-of-warranty high-voltage repair | Manufacturer warranty, roadside plan and insurance coverage |
| End-of-hold | Depreciation, lease-end charges, excess kilometres and charger removal | Resale value, battery-health evidence and transferable warranty |
Home Charging Set-Up
A Level 1 charging cord may be all that’s needed to keep a low-mileage driver’s car ready to roll, but Level 2 charging normally requires you to hire a licensed electrician to check your electrical panel’s capacity and see if you need any additional permits.
Read More: See How Installing an EV Charger Can Affect Home Insurance
Battery Replacement
Also write down the specifics of the battery and powertrain warranties, whether new or used. Note the number of years, kilometres, exclusions, whether they’re transferable and ask for a battery-health report. While CAA advises EV battery warranties are usually eight to ten years, your EV warranty specifics matter most.
Read More: Review EV Battery and Garage-Fire Risks
Maintenance Needs
Battery-electric cars generally need less maintenance than gas-powered ones. According to CAA, average maintenance costs can be 40% to 50% lower. Still, your EV will require some maintenance, including tires, suspension, brakes, cabin filters, coolant and manufacturer inspections.
EV tires can last more or less time depending on the vehicle’s weight and motor torque, tire tread and alignment, tire makeup, and your driving style. Get a quote for your EV’s size before assuming all EVs burn through tires.
Insurance Premiums
Rates will vary based on the repair process, parts, sensors, battery protection, total cost of the car, area theft rates, driver’s profile, location, etc.
Before signing on the dotted line, get a quote based on the exact trim of the car. Compare deductibles, charging equipment coverage, loss-of-use, replacement-cost or waiver-of-depreciation options.
Read More: Read How Rising EV Claims Can Affect Insurance
Add An Insurance Quote To The EV Budget
When considering whether to switch to an EV, include insurance in your cost of ownership.
We looked into our internal quote data collected through the MyChoice platform since the start of 2026 and found that, on average, battery-electric vehicles carried premiums about 31.2% higher than gasoline vehicles in a comparable group.
Calculate Energy Cost With Your Own Inputs
Annual home-charging energy cost = annual kilometres × rated kWh per 100 km ÷ 100 × your blended electricity price per kWh. Add public-charging sessions separately because time, energy, network, parking and idle fees vary. If you have measured charging losses, include them.
Annual gasoline cost = annual kilometres × litres per 100 km ÷ 100 × your expected fuel price per litre.
For a fair comparison, use the same kilometres and ownership period for both vehicles.
Electric Vehicle Charging Away From Home
Map out your winter and summer driving routes, noting public EV charging locations. Check for compatible connectors, charger power, charging costs, parking costs, idle costs, access restrictions, etc.
Find a backup option in case chargers are out of order, occupied, or charge more slowly than your car’s maximum.
If you live in an apartment or in the country, consider testing out your plan before you buy an EV.
Current Canadian Incentives
As of September 2026, Transport Canada’s Electric Vehicle Affordability Program offers up to $5,000 for eligible battery-electric or fuel-cell vehicles and up to $2,500 for eligible plug-in hybrids. These incentives apply to vehicles with a final transaction value of $50,000 or less, unless they are made in Canada. Funding and all eligibility conditions apply. Check Transport Canada’s official list of eligible vehicles before signing a sale agreement.
Quebec offers a 2026 maximum of $2,000 for eligible new battery-electric vehicles. Plug-in hybrids may qualify for a rebate of $1,000 or $500, depending on battery capacity. Quebec calculates sales tax on the price before the rebate. Confirm the date the vehicle will be registered in your name and incentive details since programs can change, pause or exhaust funding.
Bottom Line
While electric vehicles are cheaper in terms of fueling vs. charging, costs can include home-charging work, public-charging fees, insurance, tires, depreciation and possible out-of-warranty repairs.
On top of this, EV owners may struggle with finding reliable charging stations in more rural areas, though there have been legislative pushes to remedy this issue.
Potential EV owners in different provinces and territories may be eligible for different kinds of rebates, so be sure to check in with your local government or relevant organizations before committing.
Read More: Compare Hybrid and Electric Vehicles Before Buying