Canada’s Ban on Gas Engines: How Will It Affect Car Buyers?

The Canadian government is constantly taking steps to minimize its carbon footprint and reduce air pollution. Recently, the federal government announced that they have laid out a plan to ban the sale of gas-powered vehicles throughout Canada.

This announcement has taken the country by storm, and many drivers want to learn more about the upcoming changes. Several Canadian drivers are asking a wide range of questions, including “when will gas cars be banned in Canada?” and “how will the ban affect car buyers in the future?”.

We answer these questions, and many more, below. Continue reading to get started.

When will gas cars be banned in Canada? — A guide for Canadian car buyers

On December 21, 2022, the Honourable Steven Guilbault, Minister of Environment and Climate Change, officially announced that the federal government will start regulating gas-powered automobile sales, including passenger vehicles, pick-up trucks, and SUVs.

However, this ban won’t come into effect right away; the federal government plans on rolling out the regulations over the next 12 years. Here’s a quick rundown of the gas-powered car sales ban that the federal government is implementing:

• 2026 — 20% of new vehicle sales need to be ZEVs 
• 2030 — 60% of new vehicle sales need to be ZEVs
• 2035 — 100% of new vehicle sales need to be ZEVs

To clarify, ZEVs (zero emission vehicles) are vehicles that run off of alternative fuel sources (like electricity) and do not emit harmful substances into the atmosphere.

So, if you’ve been wondering, “when will gas cars be banned in Canada?” you’ll begin to see some gradual changes by 2026 and a complete overhaul of the Canadian automotive market by 2035.

Why is Canada banning gas cars in the first place?

To be clear, gas powered cars aren’t banned in Canada by the federal government; the federal government is simply regulating the sale of new models.

This leads to the question — why is the federal government regulating gas-powered vehicles?

Reducing the usage of gas-powered vehicles is a large part of the federal government’s plan to reach its climate change goals. Climate change experts estimate that the total reduction in greenhouse gas emissions (from gas-powered vehicles) can help Canadians prevent an astounding $19.2 billion worth of environmental damages.

Initially, the Canadian government planned on banning the sale of new gas-powered vehicles by 2040, but it has concluded that it needs to speed up the process if it wants to reach its goals in a timely manner.

Taking preventive steps, like regulating the sales of gas-powered cars in Canada, will have a resounding impact on our environment and the air we breathe daily.

What types of vehicles will be affected by the gas-powered car sales ban in Canada?

As mentioned earlier, the sales ban will regulate the amount of new gas-powered cars that can be sold in Canada (depending on the stage of the ban). The ban will regulate the following types of vehicles:

• Passenger cars
• Pick-up trucks
• SUVs

Additionally, Environment and Climate Change is currently working towards reducing the usage of gas-powered medium-duty and heavy-duty vehicles. Some examples of these vehicles include:

• Busses
• Delivery vehicles
• Utility vehicles
• Long-haul tractor trailers
• Dump trucks

How will the ban affect the sales of gas-powered cars in Canada?

The upcoming sales ban will have a huge impact on the automotive industry in Canada. Once the ban comes into place, vehicle importers and manufacturers can face a variety of penalties if they don’t meet the new federal standards.

What does this mean? In short, it will become more and more difficult to purchase a brand-new gas-powered car from a dealership by 2026. By 2035, you will no longer have the option to buy a new-gas powered car from a dealership.

That being said, the upcoming sales ban will have little to no effect on private gas-powered vehicle sales in Canada.

What is the Canadian government doing to accommodate drivers during the sales ban?

The Canadian government is planning to do a number of things to make it easier for drivers to transition from their gas-powered vehicles to ZEVs.

For starters, the federal government is providing $500 million to fund the creation of 50,000 charging stations across the country. Doing this will make it easier for drivers to charge their ZEVs after they’ve purchased one. 

The Canadian government is also supplying drivers with a total of $1.7 billion worth of incentives related to buying or leasing a ZEV (until March 2025). This will highly incentivize drivers to purchase or lease a ZEV before the sales ban comes into place.

This is something that you should keep in mind if you’ve been wondering, “when will Canada ban gas cars?”.

Getting electric car insurance in Canada

Currently, electric cars tend to cost more to insure than gas-powered vehicles. The price difference is affected by a number of factors; however, it primarily comes down to the difference in the repair and replacement costs.

Most electric vehicles need specialized parts that can only be installed with the use of specific tools. These parts and tools generally cost more to order and install than traditional gas-powered car parts. 

So, if you get into an accident or collision, you’ll likely need to pay more (than a driver with a gas-powered vehicle at a similar price point), to repair or replace the ZEV. If you make a claim for said repairs, your insurance company will have to bear the additional expenses. To cover these expenses, they need to charge drivers a higher amount for EV insurance.

Thankfully, there’s an easy way to reduce your insurance premium. Whether you drive a ZEV or gas-powered car, you can get access to the cheapest insurance quotes by teaming up with a Surex insurance advisor!

Save up to 25% when you bundle with Surex

Did you know that teaming up with an online insurance brokerage can help you save money on insurance? It’s true!

At Surex, we’ve streamlined the quote comparison process and made it easier for policyholders to find the most competitive insurance quotes in Canada. Our team works with many of the top-rated insurance companies in Canada, like Aviva. Having a long list of options to choose from makes finding the best insurance quote quicker than ever before.

Contact us today to receive your quotes in ten minutes or less!