Electric vehicles (EVs) are becoming a regular sight on Canadian roads. But as more drivers make the switch, a new trend is emerging – rising claim frequency and higher repair costs for EVs compared to gas-powered cars.
To see where the trend is going and how it might be impacting Ontario drivers and their premiums, we looked at Mitchell’s Plugged-In: EV Collision Insights report (August 2025) and cross-referenced it with our own quote data to examine differences between EV and gas car insurance inflation
Read on to learn why those repair costs are rising, how they affect your insurance premiums, and what you can do to keep coverage affordable.
What’s Happening With EV Claims in Canada?
Battery electric vehicles (BEVs) accounted for 4.83% of repairable collision claims in Q2 2025, a share up roughly 8% from the previous quarter (Source: Mitchell, Plugged-In: EV Collision Insights, Q2 2025).
EVs are generally more expensive to repair than gas vehicles. Average repair costs reached $6,633 for BEVs, compared with $5,916 for plug-in hybrids and $5,742 for mild hybrids (Source: Mitchell, Q2 2025).
EVs rely on sensors, cameras, and driver-assistance systems that often need recalibration after even minor collisions. Those repair costs feed into pricing, making some EVs more expensive to insure than comparable gas cars.
Read More: Are Electric Vehicles Actually More Expensive to Insure Than Gas Cars?
What This Means for Your Premium
Rising EV claim frequency and cost ripple through the entire insurance ecosystem. For drivers, it can mean higher premiums.
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.
Car Insurance is up 4.45% in Ontario in 2026, according to our latest study. Using the same dataset, we determined car insurance inflation for a set of popular electric and gas vehicles, using the same standard driving profile: a 35-year-old married individual with a clean driving record and continuous insurance coverage. On the EV side, we analyzed the Tesla Model 3, Tesla Model Y, Nissan LEAF, Ford Mustang Mach-E, and Chevrolet Bolt. For gas-powered vehicles, we looked into the Honda Civic, Toyota Corolla, Mazda CX-5, Ford Escape, Honda Accord, and Chevrolet Equinox
| Vehicle group | 2025 premium median | 2026 premium median | YoY change |
|---|---|---|---|
| All EVs pooled* | $2,016 | $2,357 | +16.9% |
| All gas vehicles pooled | $1,980 | $2,008 | +1.4% |
*The EV pool is heavily weighted toward Teslas as they make up the large majority of our sample.
Tighter Underwriting and Risk Differentiation
The specific EV you pick matters more than it would with a gas car. Battery size, brand, parts availability, and repairability all feed into rating, so two EVs with similar sticker prices can be quoted very differently.
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.
