Think EVs always cost more to insure? New data shows some gas SUVs cost $1,000 or more per year than comparable EV vehicles

The release of this study is challenging the assumption that ‘electric equals expensive insurance’ — and shedding light on where drivers end up paying more, whether it’s an EV or a standard combustible engine.

In general, the My Choice study revealed that EVs often carry higher premiums in entry-level categories, while the premium gap (between an EV and a comparable gas-powered model) narrows in certain categories, such as SUVs.

However, there is one vehicle category where the cost to insure an EV is actually cheaper than the cost to insure a comparable gas-powered vehicle — the luxury car market. Why? Because insurers don’t price policies based on fuel type alone. They look at:

• Replacement value
• Repair complexity
• Battery and parts costs
• Theft rates
• Claim severity and total loss risk

In other words, it’s not the plug that drives the premium — it’s the overall risk profile of the vehicle.

To help drivers understand what costs will come with owning a vehicle, here are the general findings of the My Choice report.

In entry-level vehicles, EVs usually cost more to insure

In the compact and entry-level segment — where many first-time EV buyers shop — electric vehicles consistently come with higher insurance premiums than comparable gas models.

For instance, a Tesla Model 3 EV costs about $1,776 per year to insure, roughly $223 more than a Honda Civic, while a Nissan LEAF EV costs $1,893 per year to insure, approximately $340 more than the Civic, according to the My Choice data (2).

Even when compared with higher-trim gas cars like the Toyota Corolla or Mazda3, EV insurance premiums remained noticeably higher.

For budget-conscious Canadians, this means fuel savings and federal EV rebates may be partially offset by higher insurance costs — especially in the first few years of ownership.

Using online platforms, such as CarGurus, makes the process of buying a used car simple. CarGurus compares thousands of listings from licensed Canadian dealers so you can quickly see which cars are fairly priced and which may be overvalued. You can filter by make, model, year, mileage, budget, and even features like fuel efficiency or safety ratings. The CarGurus “Instant Market Value” tool gives you a clear snapshot of what a car should cost in your area, helping you negotiate with confidence.

Compact SUVs show a narrower gap — and occasional reversals

For drivers looking at models in the compact SUV category, the My Choice study shows that insurance costs in this category can be mixed.

For instance, a Tesla Model Y EV costs about:

• $322 more per year to insure compared to the Subaru Forester
• $209 more per year to insure compared to a Volkswagen Tiguan
• but $97 cheaper to insure per year compared to a Toyota RAV4 (4)

In other words, insurance on EVs still trends higher overall, but the premium gap narrows — and sometimes disappears — depending on the specific vehicle and its risk profile.

In luxury vehicles, gas models often cost far more to insure

At the luxury end of the market, the insurance story flips entirely. According to the data, premium or luxury gas-powered vehicles consistently cost more to insure. For example, a Tesla Model X EV costs about $2,263 per year to insure, compared to a BMW X5 that costs $3,626 per year and a Mercedes-Benz GLE that costs roughly $3,313 per year.

Even within the same brand, fuel type wasn’t the deciding factor. For example, the gas-powered Audi Q7 costs about $75 more to insure annually than the Audi Q8 e-Tron EV (5).