Interest in electric vehicles is rising but many consumers still have an outdated understanding of the current EV market, says one expert.
“The EV industry is moving faster than consumer education is,” said Tanisha Kishan, a chartered insurance professional and expert with RatesDotCa.
She also listed five myths around EVs. They are:
All EVs are Teslas: Tesla may have carved the initial path for EVs in Canada, but many other carmakers are getting into the game. Ford, Kia, Hyundai, Chevrolet, Audi and Nissan are just a few of the carmakers now putting out EVs.
Rebates are available for all EV purchases: The federal government does offer rebates for EV purchases, but there are limitations. The vehicles must be new (not previously owned) and must have a manufacturer’s suggested retail price of $55,000 or less for passenger vehicles and $60,000 or less for station wagons, pickup trucks, SUVs, minivans, vans or special purpose vehicles.
EVs are luxury vehicles: Until relatively recently, the EVs available on the market were luxury vehicles and were priced accordingly, making them prohibitively expensive to many. However, auto manufacturers are now releasing more affordable EV models, such as the Nissan Leaf, which retails for just under $40,000.
EV auto insurance is more expensive than for gas-powered vehicles: A major factor in calculating auto insurance premiums is the price of replacing the vehicle and vehicle parts. Historically, EVs have had more expensive parts and sometimes only specialized mechanics can work on them, which drives up the cost of insurance. As the price of EV parts go down and the number of mechanics trained to work on EVs increases, insurance premiums could decline. Insurance for some EVs are already comparable to gas-powered cars of equivalent value.
EVs can only travel short distances: When EVs were initially introduced, the short drive times between charges were a major deterrent for consumers worried about travelling long distances. Now many EVs can drive up to 640km on a single charge.