Following Benjamin Vassalle’s collision with a deer during a nighttime drive in northern Ontario in January, the realization dawned that repairing their electric vehicle would incur a hefty expense.
However, when their insurer directed the vehicle to an independent garage, it languished untouched for weeks, as the mechanic lacked the necessary parts and expertise to address an EV’s repairs.
Left with little recourse, the couple resorted to sending their car back to its manufacturer, Tesla, which rectified the damaged headlight and bumper.
Electric vehicles present greater complexity and expense in repairs compared to conventional vehicles, according to experts, and with their increasing popularity, insurance claims related to EVs are on the rise globally, including in Canada, as outlined in a recent report.
The surge in EV sales across the U.K., Europe, and the U.S. since 2019, fueled by governmental incentives and infrastructure investments, precedes what could be a similar trend in Canada, the report suggests.
Statistics Canada data shows that zero-emissions vehicles constituted 12% of all new motor vehicle registrations in the third quarter of 2023, up from 8.7% in the same period of 2022.
Victor Adesanya, Vice President of Insurance at Morningstar DBRS and co-author of the report explained that insurance premiums could gradually increase in Canada due to changing claims experience as more individuals transition to electric cars. Factors such as inflation, repair costs, theft, and part expenses drive these rates.
While EV sales continue to rise, concerns over range and charging infrastructure have tempered growth.
Nonetheless, with the federal government’s commitment to achieving 100% zero-emissions vehicle sales by 2035, EVs are poised to become mainstream in Canada, impacting both insurers and vehicle owners.
