Interest in electric vehicles continues to build among Canadian consumers in 2026, with new data from Rates.ca showing a steady increase in shoppers comparing EV options, even as buyers weigh costs such as insurance before making a purchase.
Rates.ca said auto insurance quote activity for electric vehicles was 33 per cent higher in May compared with the same month last year, marking the fifth straight month of year‑over‑year growth. The data is seen as a leading indicator of consumer intent, suggesting more Canadians are actively exploring EV ownership.
The trend is being driven by several factors, including high fuel prices, the federal EV rebate introduced earlier this year and the growing availability of lower‑cost models, including Chinese‑built vehicles entering the Canadian market.
The findings align with broader consumer sentiment. A recent Rates.ca survey found 30 per cent of Canadians have some level of interest in purchasing an EV, including 17 per cent who would consider buying one within the next five years.
Insurance emerging as a key consideration
As interest grows, Rates.ca says insurance costs are becoming an important part of the purchase decision, particularly for higher‑value or technology‑heavy EV models.
“Not all EVs are priced the same by insurers,” said Daniel Ivans, insurance expert at Rates.ca. “The value of the vehicle, the cost to repair it and the technology built into the model can all affect the premium, so buyers should check the insurance cost before they commit.”
Recent quote data highlighted the variation. The Hyundai Ioniq 5 N AWD was quoted at $4,039 annually, compared with $2,606 for a Tesla Model Y Long Range and $2,171 for a Fiat 500e, based on a 35‑year‑old Toronto driver with a clean record.
Rates.ca said the differences reflect factors such as vehicle value, repair costs, and the complexity of onboard systems, all of which influence insurance pricing.
Repair costs and depreciation also in focus
Beyond premiums, the organization said EV buyers should understand how repair costs and depreciation can affect ownership. Vehicles with advanced battery systems and sensors can be more expensive to repair, which can influence whether a vehicle is repaired or written off after a major incident.
In the event of a total loss, settlement values may also be lower than expected, as standard policies typically reflect the vehicle’s market value at the time of the claim rather than its original purchase price. That value can fluctuate as EV technology evolves and new models enter the market.
Ivans said buyers should consider additional protection early in ownership.
“Anyone buying a new EV should ask about a limited waiver of depreciation endorsement,” he said. “The endorsement helps remove the depreciation deduction for a set period, giving drivers stronger protection early in ownership.”
The continued increase in quote activity suggests EV interest is regaining momentum after a slower period in 2025, according to Rates.ca. However, the data also pointed to a more informed consumer, with buyers paying closer attention to total cost of ownership rather than just purchase price or incentives.
Image credit: Depositphotos.com
