In reflection of the Iran war-driven price spike, gas has now become a major expense for Albertans and Canadians. Supply disruptions have caused gas prices in Alberta to climb from a relatively stable $1.14 to $1.22 per litre until the beginning of 2026, when things started to change significantly. In March, gas leapt to $1.55 (and more) per litre, while May and June have now seen prices hit $1.80 and more. Many are now working to figure out how to balance their monthly expenses in the midst of high gas prices.
This has led to a predictable decline in new vehicle sales. In March, 176,500 new motor vehicles were sold in Canada, which is a 6.6% decrease from last year and 3.6% less in monetary revenue for the new vehicle market.
As usual, Alberta is an outlier amongst those numbers. This province has seen a marked increase in vehicle sales of about 7% since the same time last year, as according to Statistics Canada. Among those vehicle sales, electric vehicles have taken a large leap in Alberta, as well as across Canada. There were 21,574 new zero-emission vehicles (ZEVs) sold in March in the country, an increase of 74.7% from one year earlier. New ZEVs comprised 12.2% of total new motor vehicles sold, as compared with 6.5% in March 2025.
In Alberta, ZEV sales rose by 25%, however they still represent a minority (12%) of total new vehicle sales nationally.
The term “zero-emission vehicle” (ZEV) refers to any motor vehicle that has the potential to produce no tailpipe emissions. The ZEV category includes battery electric vehicles and plug-in hybrid electric vehicles.
Why electric vehicles are gaining popularity
The federal government’s ZEV $5,000 rebate initiative introduced in February can be attributed to some of their gain in popularity, as can the remaining affordability of new models. Consumers may recognize the models of the Chevy Bolt and the Nissan Leaf, both of which were discontinued but have returned for approximately the same price as they were previously and with better batteries and longer ranges.
Both promise an EPA-estimated 400+-kilometre range on a full charge. In addition, many dealerships are offering additional incentives, which can reach up to $7,000.
Electric vehicle insurance
EV insurance tends to be more expensive than insurance for traditional gas-powered vehicles for several reasons.
First, EVs typically have higher sticker prices, which means the cost to repair or replace them is higher as well. This is changing, however, as evidenced by the return of the Bolt and Leaf, both of which are available for less than $50,000.
Second, EVs come with specialized parts and are made using complex technologies, especially batteries. EV batteries often make up more than half of the car’s value and if they are damaged they are expensive to repair or replace. EVs are far more likely to be considered totalled or a write-off by insurance companies because repair costs are so high, often reaching 60 to 70% of the vehicle’s value.
As EV technology becomes more mainstream and repair networks expand, insurance rates will begin to level out.
Electric vehicle insurance options
Electric vehicles are becoming more and more affordable in many ways, including several insurance agencies that provide what is referred to as a “green vehicle” discount, including Aviva, one of our providers.
Details include:
- Up to 10% off premiums when insuring an electric vehicle
- Free tows to the nearest charging station when your EV battery runs out of charge on the roadside
- A $2,000 subsidy for upgrading to an electric vehicle after a total loss
- Coverage for loss or damage to your charging cable or station
- Coverage for loss or damage to your vehicle including the battery (if it’s damaged as part of the loss) for a covered claim
In addition, if you bundle your vehicle and home insurance with Aviva, your EV equipment, including your charging station, will be covered by your Aviva property policy.
Get more from your insurance with Lane’s
Lane’s Insurance is a leading Alberta-based brokerage, offering highly competitive rates on electric vehicle insurance and all your other insurance needs. We are pleased to serve homeowners and business owners throughout Alberta. Contact us at:
