After the federal government’s 2026 trade reset with China, Canada announced it will let in up to 49,000 Chinese-made electric vehicles each year at a 6.1% tariff. This replaces the 100% surtax that was put in place in 2024. This policy change means brands like BYD, MG, and other Chinese EV makers can now enter the Canadian market in larger numbers. However, those brands are likely to cost more to insure than comparable EVs already on the road. Some might think that’s because they’re Chinese-built, but it is actually because Canadian claims data for those brands are too minor to accurately price them.
Read on to learn how insurance estimates were calculated, why new vehicle models cost more to insure, and what could change when these vehicles become more common in Canada.
How Much Will It Cost to Insure a Chinese EV in Canada?
Since these vehicles below are not yet widely available in Canada, the car insurance premiums below are merely estimates of what they might cost to insure in Canada.
| Model | Segment | Ontario | Alberta | Quebec | British Columbia | Atlantic Canada |
|---|---|---|---|---|---|---|
| BYD Dolphin | Compact Hatch | $2,740- $3,480 | $3,126– $3,970 | $1,950– $2,450 | $2,050– $2,700 | $1,813– $2,573 |
| MG4 Electric | Compact Hatch | $2,700– $3,450 | $3,100– $3,950 | $1,900– $2,400 | $2,000– $2,650 | $1,780– $2,550 |
| BYD Atto 3 | Compact SUV | $3,065– $3,850 | $3,495– $4,391 | $2,100– $2,750 | $2,300– $3,000 | $2,191– $2,951 |
| Chery Omoda E5 | Compact SUV (New) | $3,226– $4,399 | $3,679– $5,019 | $2,250– $2,950 | $2,450– $3,200 | $2,311– $3,512 |
| BYD Seal | Mid Sedan | $3,226– $4,216 | $3,679– $4,810 | $2,300– $3,000 | $2,500– $3,300 | $2,311– $3,326 |
*Estimated Annual Premiums for Chinese EVs in Canada in 2026-2028
How We Estimated the Insurance Costs
Our methodology included our proprietary quote data, vehicle classification logic (CLEAR), and international insurance benchmarks.
Why Budget EVs Won’t Be Automatically Cheap to Insure
“Insurance pricing isn’t based on the car’s retail price, it’s based on expected claim cost,” says Matthew Roberts, COO of MyChoice.“Even if Chinese EVs are cheaper to buy, insurers still have to factor the cost of replacing parts, parts availability,and limited Canadian loss data. That’s why early premiums may be higher than many drivers expect.”
Even if a car costs $28,000 instead of $50,000, its insurance can still be more expensive. Insurance pricing depends on:
- Repair severity
- Parts logistics
- Calibration frequency
- Theft exposure
In some cases, lower-priced EVs may even reach “economic total loss” thresholds more quickly if repair costs account for a high percentage of the vehicle’s value.
Why Premiums Should Normalize by 2030
There are four conditions that could reduce premiums over time:
- CLEAR credibility improves as Canadian claims data accumulates — the Insurance Bureau of Canada refreshes CLEAR ratings annually, and two to three model-years of loss history is typically enough to move a vehicle off conservative default assumptions.
- Replacement parts get stocked in Canada rather than shipped from overseas, which shortens repair times and shrinks the rental and storage costs that inflate claims.
- Independent repair shops certify on these platforms, so battery and ADAS calibration work becomes available through individual repair shops, not dealers only features anymore.
- Theft and total-loss experience comes in at or below segment norms — Équité Association’s national theft data feeds directly into a vehicle’s comprehensive rating.
If these milestones are reached, we expect insurance premiums to move closer to regional EV averages by 2028 to 2030.
Read More: EV Write-offs Are Rising