Electric Vehicle Insurance Discount

Electric Vehicle Insurance Discount | Ontario

Aviva Insurance is combating climate change and protecting our planet with a goal to be net-zero carbon by 2040.

As part of their action plan, Aviva is thrilled to announce discounts that will apply to eligible Private Passenger Vehicles underwritten by Aviva Insurance Company of Canada (Aviva), Scottish & York (ON), and Traders General Insurance Company (Traders).

Starting in Ontario on September 1, 2022, Aviva will introduce a 10% Electric Vehicle (EV) Discount and relaunch a 5% Hybrid Vehicle Discount for new business and renewals. These discounts will be automated, based on a vehicle’s VIN, so no further action is required on your part.

Aviva plans to launch this discount within other regions in the coming months

Understand what you want when buying an electric car

Whether you’re looking at the impact of your carbon footprint or the rising cost of gas, the thought of getting an electric car may have crossed in your mind. It’s important to ask yourself what you want to get out of the vehicle from the little to no maintenance or how electric cars utilizes no emissions. When purchasing a car people often purchase the vehicle as an expression of themselves. The car is not solely a means to an end when travelling from point a to point B but a statement about that individual. When you buy a product such as Tesla, it makes a statement about you being an early adopter, and a supporter of the futuristic visions of Elon Musk, Tesla’s larger than life CEO. If price is a large factor when purchasing a vehicle one can consider a more affordable electric car such as a Nissan leaf or Mini Cooper SE which start at around 30,000. If you are looking for a higher end and luxury vehicle, you may wish to explore options such as the Porche Taycan, Electric Hummer from GMC or Mercedes-Benz EQS, all of which are worth well over six figures.

Electric vs Traditional Car

When comparing the engine of an electric car in comparison with an ordinary car, it is important to know that electric cars don’t run on fuel engines but instead have an electric motor as opposed to an internal combustion engine. The electric motor is charged by a rechargeable battery that is plugged into a charging station to provide power when the vehicle is turned on. There are also hybrid electric vehicles which operate on both gas and electric motors in case one source depletes. Hybrid vehicles are great for road trips and longer distance car rides without the worries of looking for a charging station at a nearby gas station.

How to Charge your Electric Car

It’s important to know when buying an electric car that the first thing buyers should be confirming is the car’s mileage range after every charge. Factors like air conditioning and heat are also very important to consider since they may drastically change the battery life of a car. Your daily commute to work and habits like weekend drives should be slightly overestimated due to electric vehicles not always hitting their maximum performance after every charge. The typical wall plug is 115V which is optimal for the everyday electronic devices in one’s home such as Tv’s and phone chargers but takes much longer when charging an electric vehicle. An estimated charge cycle when utilizing a traditional charging port may range anywhere from 8- 24 hours depending on the vehicle. This is why many electric car owners opt to install a 220V plug in their garage to ensure faster charging times for their vehicle. The following plugs can
fully charge an electric car in a few hours while knowing about charging stations nearby your workplace or area of daily commute can help you in situations where a charger would be required. Certain vehicles that may be considered to be luxury vehicles such as Teslas support supercharge stations which can fully charge an electric motor in the span of 15-20 minutes. Car range is also an important factor when purchasing an electric car with certain vehicles being able to travel further than others after being charged. Teslas commonly range upwards of 600 km per charge while the Nissan leaf has a range between 240-360 km.

Maintenance Cost of Electric vs Conventional Vehicle

Although most electric cars may seem more costly on a first purchase than traditional fuel engine vehicles, the savings in maintenance costs will generally make up for it. A large benefit is not needing to pay for gas or have your finances be impacted by the economics of oil trades. By utilizing a home charging station for their electric card, buyers will save thousands of dollars a year by not having to refuel for gas and having cheaper maintenance costs. Many traditional car parts that need to be maintained, changed or fixed will be irrelevant when switching to an electric vehicle. Examples of car parts and troubles that will no longer be an issue when switching to an electric motor include replacing air filters and driver belts as well as having tune ups, oil changes and transmission tests.

Car Type (gas-electric) 2022 Toyota Corolla L 2022 Nissan Leaf S
Initial Cost 20,075 $ 27,400 $
Horsepower 139 horsepower 147 horsepower
Fuel per 100 Miles 3.0 gallons / 100 miles 30 kWh / 100 miles
City / Highway Fuel Economy 30 city / highway mpg 123 city / 99 highway mpg
Mile Total Range 436 mile total range 150 mile total range
Federal Tax Credit 0 $ 7500 $
Average Price of Fuel per Year 1,328 $ 506 $
Horsepower 139 horsepower 147 horsepower

In the chart above, the differences between a gas car and an electric car are displayed. The 2022 Toyota Corolla L (non-hybrid) has an initial cost of $20,075, a 139 horsepower, and uses three gallons of gas for every 100 miles. Meanwhile, the 2022 Nissan Leaf S 40 kWh has an initial cost of $19,900 including the Federal tax credit, a 147 horsepower, and uses 30 kWh for every 100 miles. As of December 31, 2021, the average price of gas was $3.285 per gallon while the average U.S. price of home energy was $0.1252 per kWh. The average mileage in the U.S. was around 13,476 miles. This means that the average cost per year for gas would be $1,328 in the Toyota, while the average price of electricity per year is $506. The difference in cost per year on fuel would amount to $822 between the two cars. This difference in price could become even larger if free public charging was factored into the fuel costs.  As the price of gas rises, the cost of electric cars becomes more affordable than cost of gasoline cars.

Battery safety best practices

Did you know that vehicles experiencing electrical malfunctions while parked overnight in repair shops or dealerships — when no one is around — is becoming a more common source of building fires? Faulty vehicle electrical components like batteries, chargers and cables can build up heat and eventually cause fires or even explosions, resulting in a devastating loss of property and income due to business interruption.

With electric vehicles becoming more common, we anticipate this may become a bigger issue in the future. Electric vehicle fires are hard to fight because the batteries burn hotter and faster, and can re-ignite hours or days after the fire is controlled while the car may still be in the repair shop or salvage yard.

Introducing Aviva’s Electric Vehicle initiative

Our new Electric Vehicle initiative includes features and benefits that will apply to eligible Private Passenger Vehicle insurance policies underwritten by Aviva Insurance Company of Canada, Traders General Insurance Company, Elite Insurance Company, Scottish & York Insurance Co. Limited, and S&Y Insurance Company (in Newfoundland and Labrador only).

Features & benefits

Complimentary towing for dead batteries
Electric Vehicle customers across all provinces and territories where we offer auto insurance will be able to receive a tow to the closest vehicle charge station free of charge, in the event their battery loses charge on the road. To request service, customers should call the toll-free number:
1 (833) 873-5938.

Electric Vehicle total loss subsidy
To help encourage the adoption of Electric Vehicles, we are introducing a $2,000 subsidy incentive towards the purchase of a brand-new Electric Vehicle for a customer who experiences a covered total loss on their gas-powered or Hybrid vehicle, insured with Aviva.

In Ontario and Alberta, we recently announced the upcoming fall launches of our Electric Vehicle Discount and Hybrid Vehicle Discount with plans to extend these discounts to other provinces and territories in near future. Please note that these discounts will replace any existing Green Vehicle Discounts. It will be applicable for Principal and Occasional Operators and will apply to all coverages, excluding endorsements.

Let’s connect.  Get an electric vehicle insurance quote.

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