As electric vehicles (EVs) continue to gain popularity, there’s growing awareness about how they impact auto insurance policy costs. According to a recent report, insuring EVs may come with higher premiums compared to traditional gasoline-powered cars. But why is this the case?
The higher cost of EV insurance is largely due to their advanced technology and expensive repair costs. Electric vehicles often have specialized components and limited availability of parts, making repairs more costly when accidents happen. Additionally, the technical expertise required to service these vehicles is more specialized, further driving up repair expenses.
Judging by the experience of electric vehicle owners in Europe, Canadians can expect higher insurance premiums as EV uptake increases. Average electric car insurance costs in the U.K. leapt 72 per cent in 2023, compared with 29 per cent for gas and diesel models, the Financial Times reports.
Maybe something to keep in mind before switching over to an electric car.
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