Why is it so expensive to insure an electric vehicle?

Why is it so expensive to insure a vehicle? electrical?

DAY

Unexciting, but no less important, car insurance is part of the reality for motorists.

In order to obtain fair and unbiased answers to their questions, Antoine Joubert and Germain Goyer spoke with Louis Cyr, insurance broker, as part of the Guide to l'auto on QUB Radio.

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Why are the costs so high for an electric vehicle?

In recent months, Antoine Joubert has purchased his first electric vehicle: a Chevrolet Bolt EV. Inexpensive to buy, it is nevertheless very expensive to insure, as is the case, moreover, for the majority of electric vehicles. In fact, the insurance premium is twice as high as that of a Chevrolet Silverado whose selling price is twice as high.

“The frequency of complaints is not a determining point [in this case]. The severity, which [determines the] amount of each claim, is higher in the case of an electric vehicle. The insurer is responsible for providing a vehicle during the repair. If it takes more than 24 months to receive a new electric vehicle, imagine the waiting time for a replacement part in the event of a collision,” explains Mr. Cyr.

High deductible : the best discount from insurers

Of course, we all have a tolerance for risk that differs from one person to another. However, you should know that increasing the deductible of the insurance policy can result in a significant saving of money.

“The first time you increase your deductible by, for example, $500 to $1000, your discount could be 5 to 10%. If you go from $1000 to $2500, you could get a 10 or 15% discount, for example. At $5,000 or $10,000, it's no longer worth it, the discounts are no longer there,” says Mr. Cyr. 

Civil liability: how high?< /strong>

When it comes time to purchase an insurance policy for a new vehicle, you will be asked if you want $1 million or $2 million liability coverage. Depending on how you use the vehicle, you could again save a few dollars.

“If in our lifestyle, we go to Ontario or the United States [therefore outside the jurisdiction of the SAAQ], it allows us to be covered up to two million. Inside Quebec, the civil liability of two million covers the risk of hitting a good that is not an automobile that is worth more than a million,” specifies Mr. Cyr.

News of the week

During this show from Car Guide, there was also talk of the disappearance of the W12 engine at Bentley and Ford, which extends the production stoppage of the F-150 Lightning. 

Road tests

Antoine Joubert and Germain Goyer share their thoughts on the recently tested 2023 Jeep Compass and 2022 Ford Expedition. 

The Car Guide , it's every Saturday at 10 a.m. on QUB Radio, repeating on Sunday at 6 p.m.