Thu. Sep 22nd, 2022


The main takeaway:

  • Hybrid car insurance is often more expensive than gas-only car insurance, but it also depends on various factors such as the cost of the car and your personal driving history.
  • There are still ways to save money and take advantage of discount opportunities, including “green car” discounts, when purchasing hybrid car insurance.
  • The best way to save money on hybrid car insurance is to do a little research and shop for the best rate.

Hybrid cars versus gas-only cars

Hybrid car sales kicked off in 2021 with an increase 80000 Model Sold according to the Bureau of Transportation Statistics. While it still represents about 5% of all cars sold, this represents a 38% jump in sales.

To illustrate the difference in cars sold today:

  • Hybrid cars It is powered by an electric motor and powered by an internal combustion engine (ICE). The battery is charged by regenerative braking, as well as by an ICE motor. Not delivered for recharge.
  • Gas-powered cars only Powered by ICE alone using gasoline.
  • electric cars It is powered by a battery-powered electric motor and must be recharged. There is no ICE subsidy and no gasoline use.

Both hybrids and electric cars have a lower environmental impact, but have higher purchase prices, maintenance/repair costs, different driving ranges, and potential refueling and charging challenges.

When we look at hybrid car insurance versus gas, we start to see a pattern that ends up with insurance prices for hybrid cars going up. Let’s take a closer look.

Are hybrid cars more expensive to insure?

Yes, insurance rates for hybrid cars tend to be higher, as high as 7% according to PRWeb. And it doesn’t look like the reasons, detailed below, are going to change any time soon.

However, there are a variety of factors that affect any car insurance and the deductibles that can be used to lower your annual car insurance. We’ll take a look at how everything from your driving record to your credit score affects what you pay. We’ll also explore the discounts available through most insurance companies.

Why are hybrid car insurance costs higher?

Insurance companies base their rates on a variety of factors related to each customer personally, but they also maintain huge databases filled with statistics about every vehicle imaginable. Since 1999, when the first hybrid cars went on sale in the United States, insurance on hybrid cars has been higher based on some of these facts:

Hybrid cars cost more than their gas-only counterparts

On average, hybrid cars cost 17% more than their direct counterparts. For example, Honda Accord and Toyota Camry both have an ICE model and a hybrid model, and the higher price is reflected in both hybrid models.

The price tag is justified when you realize that there are more moving parts, larger and more detailed battery systems (and battery materials) and highly specialized computer technology. And with a more expensive car – the higher the cost of insurance to protect it.

Repairs and parts cost more

Hybrid cars are simply more expensive to repair. Its parts are more expensive, and the skill level required by mechanics is more extensive.

Insurance companies ensure that their premiums reflect this higher cost of repairing a hybrid car after an accident or theft.

Hybrid cars are more popular in urban areas

Hybrid cars tend to be more popular in large urban areas. And with the big cities comes more crime, highway driving and longer commutes. All of these things increase the potential for problems, which in turn increases the cost of car insurance due to the additional risks that insurance companies take.

Quiet vehicles are not always safer

The National Highway Traffic Safety Administration (NHTSA) has determined that hybrid cars are less safe because they are quieter, especially at slow speeds. This has led to an increase in bicycle and pedestrian accidents with hybrid vehicles.

In fact, NHTSA Make it mandatory in 2020 That all hybrid and electric cars be equipped with a sound device that emits a noise when traveling at a slow speed to alert the public of its presence.

Hybrid cars tend to drive more

Because they use less gas and are better for the environment, drivers of hybrid cars tend to drive more, especially during rush hour traffic and long commutes. More driving means more risks and higher insurance costs.

How much does hybrid car insurance cost?

If you own an expensive car, you can expect to pay more for insurance coverage. Like all insurance, a variety of factors go into the price you pay for coverage. Things like the age of the vehicle, the type of vehicle, and your driving experience can all affect the final cost.

Additionally, there are ways to score lower rates whether you’re driving a hybrid or an ICE.

Ways to improve hybrid car insurance rates

No matter what type of hybrid you drive, these are the primary things an insurance company will consider when setting your insurance rates. It’s important that you understand how you can positively impact your overall pricing, so we include ideas to improve each one.

1. Driving history

From the first time you get your driver’s license, you start compiling your driving record or driving record. Depending on the state you live in, there are different penalties for driving offenses, and different criteria for how long each ticket or conviction remains on your driving record.

For example, in New York State, accidents and Most influential violations They are shown for three years, while DWI convictions are shown for 15 years.

Consider these possible ways to improve your driving record:

  • Take a defensive driving course through an AAA, AARP, or other approved group. Depending on your state’s laws, this can be sent to the DMV to reduce penalized points.
  • Objection to the ticket – If there are extenuating circumstances, be sure to appeal the ticket in traffic court.
  • Ask to erase your history – Check with your DMV to see if convictions will be deleted. You will be required to pay a fee and fill out some paperwork, but it may be worth the time and effort.

2. The make and model you buy

The make and model of the car you buy will affect your insurance rates. If you want to reduce your commitment, consider purchasing a less expensive vehicle.

3. Whether you rent or own

If you are in the process of buying your first home or have recently purchased a new one, be sure to re-price your insurance. Insurance companies view homeowners more favorably and can get a big break from your insurance costs.

4. Your credit score

Your credit score not only affects getting a loan or mortgage, but it can also affect your ability to get the best hybrid car insurance. Most insurance companies use a credit-based insurance score that takes into account, among other things, your credit report and score.

If you do not know your current credit score, you are entitled to a free copy from each of the three credit agencies annually. From there, you can work on improving your score by reporting inaccuracies, fixing late payment issues, or managing your use of credit (eg, reducing balances owed, etc.)

5. Where do you live

Where you live has a huge impact on the premiums you pay. Whether it’s due to crime rates or major weather events in your area, you may be paying exorbitant rates for auto insurance.

This does not mean that you should move only to lower your insurance rates, but if you plan to move in the near future, be sure to explore the best areas in your new area.

6. Shop for a better price

It is always a good idea to shop instead of just taking the first product you come across. Today especially with the fast and direct access that the internet provides – shopping for quotes has never been so easy.

7. Reduce your mileage

Since many hybrid car drivers tend to drive more, switch to something more environmentally friendly – mass transit! Taking away your daily commute miles can help reduce your annual premiums.

Also, if you’ve recently moved to a very remote place of business, be sure to shop for new insurance offers with the new reduced mileage.

8. Increase your discounts

Another good way to reduce your hybrid car insurance rates is to increase your deductibles. Going from a $0 deductible to a $500 or even $1,000 deductible can have a strong impact on your premiums.

9. Install anti-theft devices

Most new hybrids come with anti-theft devices. However, if your vehicle does not have adequate theft protection, consider adding some additional hardware or solutions.

Once improvements are made, take the time to get a new quote for hybrid car insurance. We hope you will be pleasantly surprised.

Is there a discount for hybrid car insurance?

Sometimes called the “alternative fuel auto discount” or the “green car discount,” many insurance companies offer a 5% to 10% annual discount on your hybrid car insurance costs. In addition to the green car discount, you may qualify for additional discounts.

Other discounts to lower your hybrid car insurance

  • Multi-Car Discount – Bundling your insurance policies with one company is a great way to get multi-policy discounts offered by more insurers. Home, car, RV, motorcycle, boat and renters insurance can all be bundled together at a discounted rate.
  • Pay a full year up front – Insurance companies like to get their money up front (who doesn’t?) and are willing to pay a discount if you pay the premium in full at the beginning of the policy term.
  • Auto Pay Discounts – When you sign up for automatic payment, most insurance companies will offer a discount whether you use Electronic Funds Transfer (EFT), debit or credit card.
  • Paperless Discounts – Choosing to not use paper is another way to cut back on paper while also getting a discount. Sign up for your paperless insurance company system and you’ll receive all of your insurance policies, bills and insurance cards electronically while saving money (and trees).
  • Loyalty Discounts – Insurance companies are motivated to keep your business and are willing to offer a renewal discount with them each year.
  • Good Driver Discounts – Make sure you get the maximum discount for being a good driver. Some companies offer additional discounts if you participate in an on-board diagnostic program where you install a monitoring device in your vehicle. The device monitors driving habits, such as speed and stopping frequency.
  • Good Student Discounts – If you or your child is a student, most insurance companies offer a discount for good grades, usually a B or higher.

Get Hybrid Car Insurance Quotes

Perhaps you already have a hybrid car and just want to check prices, or you are thinking of buying a new car and are curious about hybrid car insurance rates. Whatever the reason, it’s important to have an annual review of your insurance to make sure you get the best hybrid car insurance.

Every insurance company is different, and rates can fluctuate from year to year. Additionally, your circumstances may have changed, so be proactive. You don’t want to pay more than you should, so take the time to visit a marketplace, such as einsurance.com, to review your hybrid car insurance product. Once you are armed with the best options, you can evaluate your options and choose the best company for your needs.

About Catherine Morestad

Catherine has a background as a small business owner and coin dealer. Catherine has also enjoyed a career as a Regional Director and Operations Manager in Healthcare, specializing in Operations, Third Party Insurance Reimbursement, and Revenue Cycle Management.



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