Sandra Blanchard

How to Properly Insure Your Electric or Hybrid Car

In the 1990s, we were already imagining the cars of the future that could fly. Today, however, electric cars are the trend. Does this technology require special insurance? Our broker is here to clear things up for you!

In general, auto insurance is similar for all types of vehicles. That being said, as the owner of an electric car, you can add additional coverage to your underlying auto insurance policy to better protect your investment.

1. Replacement Cost (Q.E.F. 43)

Whether they are electric or run on gas, in underlying insurance policies, cars are insured based on their value at the time of the claim. In concrete terms, this means that in the event of a partial loss, the parts of your car will be replaced by similar auto body parts and not original manufacturer’s parts. If a similar auto body part is not available, you may therefore be required to pay the difference between the similar auto body part and the original manufacturer’s part out of pocket.

If you purchase a new car, the replacement cost option is worth considering, since it increases your coverage in the event of a claim. It is made up of three components:

  • Endorsement 43-A: In the event of a partial loss, damaged parts will be replaced by new original manufacturer’s parts.
  • Endorsement 43-E: In the event of a total loss, the vehicle will be replaced by a new vehicle with the same specifications, equipment, and accessories.
  • Endorsement 43-D: Endorsement 43-D is an alternative to endorsement 43-E, when such an endorsement is not available. In the event of a total loss, the value of the damage corresponds to the lowest of the following amounts:
    • The price paid for the vehicle.
    • The current price of the vehicle at the original date of purchase.
    • The price for which the insurer may purchase, on the date of the loss, a new vehicle with similar specifications, equipment, and accessories.

Did you know that in the event of a partial loss, you must plan for a longer period for repairs for an electric or hybrid car than for a car that runs on gas? Not all auto repair shops are able to repair electric cars. Even if they can, there is no guarantee that the parts will be available on-site at the time of your accident. It is therefore important to consider this when purchasing your auto insurance.

2. Replacement Value (Q.P.F. 5)

The replacement value option can also be added to your policy by your broker. This product is sold separately from the auto insurance policy. In addition to providing coverage for new vehicles, this product can also provide coverage for used vehicles in a number of different ways.

The benefit of this product is that you will have an additional amount for a courtesy vehicle in the event of a claim. Why would that be of interest? Since repair periods are sometimes longer, rental costs can be higher as well. Moreover, with this coverage, your deductible is reimbursable.

3. In the Event of a Claim

Most auto repair shops are, in fact, unable to offer you an electric courtesy vehicle.

If you have endorsement Q.E.F. 20, which is often included in auto insurance policies, you can be reimbursed for the following amounts:

  • Costs to rent a temporary replacement vehicle.
  • Taxi expenses.
  • Public transportation expenses.

The amount will correspond to the amount listed in the declarations section of your insurance policy. It generally ranges from $1,500 to $2,500. If the repair period is extended, particularly due to parts being unavailable, this amount may be insufficient.

 4. Charging Station Covered by Your Home Insurance Policy

If you decide to have an electric vehicle charging station installed on your property, it is important to note that it is generally covered by your home insurance policy. Call your broker to learn more.

To conclude, insuring your electric vehicle is not that different from insuring a car that runs on gas. However, several types of coverage exist to better protect you in the event of a claim and to give you peace of mind. If you have any questions about this subject, feel free to contact your Lareau broker.

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Sandra Blanchard Underwriting Technician See the profile

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