What Rising Electric Vehicle Claims Mean for Your Insurance

3 minutes can save you hundreds. Enter your postal code below and join thousands of Canadians saving on car insurance.

Secure. No Spam. No Fees.

Why You Can Trust MyChoice

MyChoice serves as an independent intermediary between you, financial institutions and licensed professionals without any additional charge to our users. In the interest of transparency, we disclose that we partner with some of the providers we write about – we also list many financial services without any financial gain. MyChoice does not operate a financial institution or brokerage and to ensure accuracy, our content is reviewed by licensed professionals. Our unique position means that we hold no recurring stake in your policy, ensuring our mission to help Canadians make better financial decisions is free of bias or discrimination. 

Article Contents
By Aren Mirzaian
Updated on October 15, 2025

3 minute read

Article Contentstable-of-contents

Electric vehicles (EVs) are becoming a regular sight on Canadian roads. But as more drivers make the switch, insurers are noticing a new trend – rising claim frequency and higher repair costs for EVs compared to gas-powered cars. Let’s break down what’s driving the increase in EV claims and how drivers can keep their car insurance costs under control.

Rising Electric Vehicle Claims At a Glance

  • Repairable battery electric vehicle (BEV) claims rose 4.83% in Q2 2025, an 8% jump from the previous quarter.
  • Quebec’s temporary suspension of BEV rebates led to an 8% decline in consumer interest.
  • Average repair costs for BEVs reached $6,633, compared to $5,916 for plug-in hybrids and $5,742 for mild hybrids.

What are the Main Drivers of Rising EV Claim Frequency?

EV claims are rising, and that’s largely due to a mix of adoption trends, technological complexity, and market dynamics all playing a role. Let’s look at the biggest factors behind the rise.

More EVs mean more exposure:

As Canadians increasingly buy EVs, there are simply more of them on the road, and with that comes more potential for collisions and claims.

Complexity and sensitivity of EV systems:

Maintenance is one of the hidden costs of owning an EV, as EVs rely on high-voltage batteries, advanced sensors, and intricate electronics. Even a light bump can trigger inspections or part replacements that a traditional car wouldn’t need.

Total-loss thresholds being reached more often:

Because EVs tend to be more expensive overall, smaller accidents can push repair costs past the insurer’s write-off threshold.

Depreciation, incentives, and shifting resale value:

Price cuts, incentive changes, and fluctuating demand all affect how much an EV is worth, which, in turn, affects insurers’ decisions on whether to repair or replace the vehicle.

Why EV Insurance Claims Are Increasing

Why EVs Are So Expensive to Repair

The heart of the issue for insurers isn’t just how often EVs are being damaged, but how much it costs to fix them. From specialized parts to high-voltage safety protocols, EV repairs can quickly add up. Here’s why those costs tend to be higher:

Damage to a battery pack or wiring harness can require complex diagnostics or complete replacement, adding thousands to repair bills.

Many parts must be ordered directly from manufacturers, which keeps prices high and slows down repairs.

EVs are packed with driver-assistance systems and sensors that require expert recalibration after even a minor fender bender.

Because EVs are heavier and structurally different from gas vehicles, they often need specialized tools and training to be repaired properly.

What This Means for Drivers and Insurers

Rising EV claim frequency and cost ripple through the entire insurance ecosystem. For drivers, it can mean higher premiums. For insurers, it means rethinking how risk is measured and priced. Here’s how the landscape is shifting:

Rising Premiums (Especially for EVs)

Because insurers must cover higher average repair or replacement costs, many are adjusting pricing models upward, especially for EVs. The general inflation in parts and labour also plays a role. 

Tighter Underwriting and Risk Differentiation

Insurers will increasingly differentiate between types of EVs (battery size, brand, safety features, repairability) when setting premiums. Some “cheaper to maintain” EV models may get better terms. Also, insurers may scrutinize vehicle history more closely.

More Write-Offs, More Loss-Adjustment Complexity

With more EVs being declared total loss, insurers will need more detailed loss-adjustment workflows and better data about battery condition, residual value, and salvage. This complicates claims management.

Market Pressure and Competition

Some provinces have stricter rate regulation (or government insurers). Insurers may compete fiercely on EV insurance, possibly offering green discounts or bundling incentives. Also, insurers might pull away from less profitable lines or restrict underwriting in regions where EV claim costs are especially high.

How to Keep EV Insurance Costs Down

Here are practical steps for drivers to manage or reduce insurance costs:

  • Choose EVs with strong safety, repairability, and parts support: Some models are easier and cheaper to fix. Check reviews or get advice before purchase.
  • Increase deductibles: A higher deductible reduces what the insurer pays, often lowering your premium.
  • Bundle your policies or negotiate with your insurer: If you have home, renters, or other insurance, bundling may yield discounts.
  • Ask about EV-friendly discounts or green incentives: Some insurers give credits for eco-friendly vehicles, low mileage, or safety features.
  • Drive carefully and maintain a clean record: Claims frequency will always factor in driving history. Having no accidents or traffic violations on your record helps.
  • Consider telematics or usage-based programs: If available, these programs let you earn discounts based on your driving behaviour and mileage.

Key Advice from MyChoice

  • Ask prospective insurers how they price EVs and what discounts or penalties they apply.
  • When you select an EV, think about how easy it is to repair, parts availability, past claim history, and battery warranty, as these will affect your insurance cost.
  • Watch incentives and local rules. Provincial incentive programs, trade‐policy changes, or parts tariffs can affect residual values and repair costs

Congratulations! You made it to the end!

Now, here is the easy part: complete your quote in under 2 minutes
  • Secure. No Spam. No Fees.

Discover More About

All-Wheel Drive vs. Front-Wheel Drive: an Insurer’s Guide
October 6, 2025
All-wheel and front-wheel drive cars have their own pros and cons. Learn more about them and ensure you make an informed car purchase decision.
Read full article
A Guide to Insurance After a Total Loss Car Accident
September 29, 2025
Getting your car totalled is a costly and frustrating experience. Learn more about navigating insurance after your car has been written off.
Read full article
Navigating Car Insurance After a DUI Conviction in Canada
September 22, 2025
How do you get affordable car insurance after a DUI conviction in Canada? Learn how a DUI affects your auto insurance and how to bring your premium back down.
Read full article

Even More Ways To Save on Insurance