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Model S Insurance in Canada

Jaff

Active Member
Aug 15, 2010
3,135
326
Grimsby, Canada
For Ontario drivers...you should contact your auto insurance representative to inquire about a discount for electric and hybrid vehicles...Intact Insurance has recently amended their hybrid vehicle discount to now include EVs...I'd be surprised if other underwriters don't follow.
 

Jaff

Active Member
Aug 15, 2010
3,135
326
Grimsby, Canada
Good idea to try again...Intact just changed their underwriting rules effective December 1 to include this, so it's "brand new"...I agree with you about the illogical stance of giving hybrids a discount, but not EVs :rolleyes:...if your carrier was willing to give a hybrid vehicle discount in the past, they may well have amended their rules, or, will do so in 2016.
 

mknox

Well-Known Member
Aug 7, 2012
10,103
1,894
Toronto, ON
When I got the car back in March, i asked about an EV discount and I was told there wasn't one, I asked about Hybrid, it existed but as a pure EV it wouldn't apply to me, I explained the absurdity to the agent, doubt it made it anywhere, but will follow-up to see if it has changed.

What is the rationale for offering a discount to hybrid and/or EVs in the first place? (and why would it be absurd that a hybrid discount doesn't apply to an EV?) I assume it is based on some sort of lower claims costs for that class of vehicle. I certainly hope that the insurance companies are not subsidizing one class of vehicle at the expense of others. If that were the case, and I drove an ICE car, I think I'd be looking for a carrier that didn't offer hybrid/EV discounts!
 

sitter_k

Active Member
Jun 23, 2014
1,032
551
Toronto (GTA)
What is the rationale for offering a discount to hybrid and/or EVs in the first place? (and why would it be absurd that a hybrid discount doesn't apply to an EV?) I assume it is based on some sort of lower claims costs for that class of vehicle. I certainly hope that the insurance companies are not subsidizing one class of vehicle at the expense of others. If that were the case, and I drove an ICE car, I think I'd be looking for a carrier that didn't offer hybrid/EV discounts!
Just playing devils advocate aren't all classes of higher paying groups therefore subsidizing a lower paying group? Are men subsidizing womans life insurance and car insurance? Women subsidizing mens health insurance? Red cars subsidizing non red cars?
 

Doug_G

Lead Moderator
Global Moderator
Apr 2, 2010
17,884
3,394
Ottawa, Canada
Higher insurance rates for red cars is an urban legend. Insurance companies base these things on group statistics (that's why they hire actuaries); I assume EV drivers have a better safety record.

Of course it is discriminatory to base insurance rates on what group you belong to. I paid much higher insurance rates when I was a 16 year old male, even though I never had an accident. But there isn't a good alternative. The higher rate payers are theoretically subsidizing the lower rate payers, but if you turn that around the higher rate payers have higher accident rates, and if you didn't charge them more that would result in the the safer drivers subsidizing the more dangerous/expensive ones.
 

Jaff

Active Member
Aug 15, 2010
3,135
326
Grimsby, Canada
For the most part Mike, I agree that an EV discount seems unwarranted, and a hybrid discount outrageous.

The only rational reason that I can think of (for EVs, OTHER THAN Teslas), is that with a lower range, comes the better driving habit of maximizing range by reducing speed...I'm exempting Tesla vehicles here because we have more range than most (usually easily exceeding our daily requirements) and therefore, given the inherent performance capabilities of our vehicles, may tend (or be tempted) to use this performance the odd time...:wink::tongue::biggrin:

All auto insurance is subsidy of one's individual liability exposure (of driving a vehicle) to that of a concurrent group's liability exposure (in one form or another).


What is the rationale for offering a discount to hybrid and/or EVs in the first place? (and why would it be absurd that a hybrid discount doesn't apply to an EV?) I assume it is based on some sort of lower claims costs for that class of vehicle. I certainly hope that the insurance companies are not subsidizing one class of vehicle at the expense of others. If that were the case, and I drove an ICE car, I think I'd be looking for a carrier that didn't offer hybrid/EV discounts!
 
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I've been told by more than one insurance company that the Hybrid discount is a marketing ploy and a "green" initiative rather than an underwriting strategy. I do work closely with insurance companies so I'm not just hearing this through brokers or agents. That's why I said it's obsurd to have a Hybrid discount but not an EV discount since the EV is obviously the "greener" choice.
 

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