TORONTO, ONT.: After a difficult 2025 marked by rebate pauses and slowing sales, interest in electric vehicles is showing signs of recovery.
Rates.ca auto insurance quoter data shows EV quotes increased 40% year over year in March, and a new Leger survey commissioned by Rates.ca finds that 30% of Canadians express some level of interest in purchasing an EV.
Among those who are interested or unsure, 56% say they would consider a Chinese-built model, with affordability cited as the main reason.
The full report is available here.
ADVERTISEMENT:
“We’re starting to see interest come back,” says Daniel Ivans, Rates.ca insurance expert.
“Fuel prices and rebates are helping bring EVs back into the conversation, and lower-cost models are making them feel more attainable.
“But, once people start running the numbers insurance becomes part of the equation. Premiums can vary widely depending on the vehicle’s value, repair costs, theft risk and location, so anyone buying their first EV should compare quotes early and review coverage carefully.
The Rates.ca report highlights several key trends:
Interest is rebounding after last year’s slump:
- According to Rates.ca quoter data, EV quotes increased 33% year over year in February and climbed another seven percentage points to 40% in March
- According to a Leger survey commissioned by Rates.ca, 30% of Canadians report some level of interest in buying an EV
- 17% of those interested in buying an EV say they would consider purchasing one within the next five years
- 13% of those interested in buying an EV say they are open to the idea but not in the near term, while 51% of survey respondents report they are not interested in purchasing an EV
ADVERTISEMENT:
Interest is concentrated among specific groups:
- According to the survey, younger adults aged 18 to 34, men, urban and suburban residents, and households earning over $60,000 are more likely to consider purchasing an EV
- The survey shows rural and lower-income Canadians remain significantly less likely to consider purchasing an EV, underscoring potential affordability and infrastructure gaps
Affordability remains the top concern:
- According to the survey, 59% of those interested or unsure of purchasing an EV cite the purchase price as their primary concern
- 54% of respondents that are interested or unsure of purchasing an EV worry about driving range and charging access
- 45% of respondents that are interested or unsure of purchasing an EV are concerned about repair and maintenance costs
- 23% of respondents that are interested or unsure of purchasing an EV cite insurance costs as a factor in their decision
ADVERTISEMENT:
Lower-cost imports could shift the market:
- According to the survey, 56% of Canadians who are interested or unsure of purchasing an EV say they would consider a Chinese-built EV
- 31% of those that would consider a Chinese-built EV cite affordability as the primary motivator for considering those models
Ivans adds that insurance plays an important role in the total cost calculation. “What the vehicle is worth and how expensive it is to repair are two of the biggest factors in how premiums are set. EVs tend to have higher repair bills and more specialized parts, and insurers price that in.”
According to auto claims technology company Mitchell, in early 2025, battery-electric vehicles averaged about $7,026 per repair compared to $5,345 for gas vehicles. “
Those higher repair costs can show up in premiums,” says Ivans. “As more affordable models enter the market, vehicle value will play a big role in how insurance pricing adjusts.”