Do hybrid cars have cheaper car insurance rates?
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UPDATED: Mar 13, 2020
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Hybrid cars have many advantages over typical gas vehicles including improved fuel efficiency but the argument for cheaper car insurance is often offset by the higher cost of the vehicle.
In theory, hybrid cars are cheaper to insure compared to similar models since owners tend to have safer driving statistics as a group (leading to a lower risk profile) but car manufacturers still price hybrid cars much higher than typical gas vehicles. This replacement cost is what can cause many hybrid owners to incur higher car insurance costs.
Hybrid Replacement Cost
For example the 2011 Chevy Silverado 3500HD has a starting MSRP of $28,805 and the 3500HD is the top of the line model in the Silverado lineup. The 2011 Chevy Silverado Hybrid however starts at $38,340 – over 30% more than the gas powered version.
If all thing were equal and both models were priced the same logic would dictate that Silverado Hybrid owners would get cheaper car insurance rates however due to the much higher replacement cost auto insurance companies have to factor in the cost of replacing the vehicle in a total loss accident and this additional risk means higher car insurance rates – even with the lower overall risk of Hybrid cars.
Parts and Repair Cost
Another factor auto insurance companies use to determine insurance rates is the repair cost of a vehicle. Hybrid vehicles are still relatively new and have a much smaller network of part manufacturers than traditional vehicles. Additionally, many hybrid cars have very unique parts which can be quite expensive to repair, even in a minor accident.
Who offers Hybrid car Insurance?
Almost all car insurance companies insure hybrid cars and it would be very rare to have any application for car insurance denied solely due to the fact you own a hybrid car. Shopping for hybrid insurance is really no different than comparing car insurance quotes for any other vehicle.
Some car insurance companies do offer discounts exclusively for Hybrid cars such as the Travelers Insurance Group (where drivers can save up to 10% just for insuring a Hybrid vehicle) but its relatively the exact same process to insure a Hybrid vehicle as your current one.
Car insurance for Hybrid cars has not advanced yet. In fact, the entire Hybrid car market has really only advanced aggressively since 2006 but is the fastest growing segment of the automotive industry. Shorty we will see much more specialized auto insurance packages and lower rates for Hybrid cars but for the moment cheap car insurance is not readily available. Now you won’t pay through the roof for Hybrid auto insurance but its important to contact auto insurance companies well before purchasing a vehicle so you can budget in the cost of insurance before committing to a car loan.
Do you need special car insurance for a Hybrid car?
No. Hybrid cars are covered under the same types of auto insurance coverage all other vehicles use including liability, comprehensive, collision insurance and more. However since most Hybrid car owners typically purchase a new vehicle its important to learn about your car insurance options and consider a full coverage policy including GAP insurance.
What can I do to save money on hybrid car insurance rates?
Having a clean driving record is the best thing you can do but just like traditional gas vehicles there are many ways to save money on Hybrid cars using any number of the car insurance discounts available. Some of the most popular discounts include:
- Good Driver Discount
- Low Mileage Discount
- Good Student Discount
- Multi-Policy Discount
- Multi-Vehicle Discount
Always ask potential car insurance companies about the discounts available and make sure to compare policies equally. Cheap car insurance quotes can sometime be misleading due to the differences in the limits of coverage, policy deductibles and more.
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