Laurie Bauer , CAIB | Business Development Manager , TW Insurance , Soon to be Orbit Insurance Services

Electric and hybrid vehicles continue to become more popular among Canadians . If you are considering making the change to an electric vehicle ( EV ), it is important to understand your options , what would compliment your needs best , environmental impact , and the potential impact on your wallet .

Understanding the Different Types of EVs

1 . Battery Electric Vehicles ( BEVs ) BEVs are fully electric cars , never using gasoline , and are powered exclusively by an electric motor and battery pack . These are considered the most cost-effective and eco-friendly EV option .

2 . Plug-in Hybrid Electric Vehicles ( PHEVs ) PHEVs have large battery packs and can be recharged by plugging them in . Once the battery is used up , a gasoline engine or generator takes over , and the car functions like a hybrid . PHEVs are more affordable to drive than traditional hybrids because they provide all-electric driving for most day-to-day needs while offering equal or better fuel economy when operating in gasoline mode .

3 . Hybrid Electric Vehicles ( HEVs ) HEVs contain a gasoline engine , an electric motor , and a small battery pack . The battery is recharged through ‘ regenerative braking ’. The electric motor switches on after the vehicle stops and when it first accelerates ; then the gasoline engine takes over to cruising speed . Regenerative braking lets the electric motor and the gasoline engine do what they ’ re best at , which improves overall efficiency and reduces fuel costs .

Save More Long-Term with EVs and Life Cycle Cost

To be objective with the overall cost of EVs , it ’ s best to consider both the purchase price and the operating cost .

● EVs use electricity instead of fuel . Averaging 20,000 km / year can save as much as $ 2,000 per year on fuel alone ( plugndrive . ca / electricvehicle-benefits ).

● EVs require less frequent and less complicated maintenance than gas vehicles . If maintained according to the manufacturer ’ s recommendations , EV drivers pay half as much to repair and maintain their vehicles ( greencars . com / expert-insights / cost-tomaintain-an-electric-car ).

● Some insurance carriers , like Aviva and CAA , offer purchase subsidy incentives and auto policy discounts to insure hybrid or electric vehicles .

● The battery is the most expensive component . This cost can vary greatly by vehicle .

● EV ownership can help reduce personal vehicle greenhouse gas emissions by as much as 90 % ( plugndrive . ca / electric-vehicle-benefits ).

Even More Savings

Canada ’ s Zero-Emission Vehicles ( iZEV ) Program offers up to $ 5,000 off the purchase or lease of an eligible EV . Refer to the Government of Canada list of eligible vehicles often for updates .

Have questions about your car insurance policy ? Call 1-888-338-2685 to discuss hybrid or EV rates with a TW insurance broker . If you ’ re in the market for car insurance , call 1-888-338-2685 for a quote . news & views SUMMER 2023 | 43