Will My Insurance Rate Go Down if I Buy a Hybrid Car?

If you are thinking of dumping your gas guzzler and picking up a hybrid, you could end up saving a pretty penny on auto insurance. Some top insurance companies are offering five to ten percent discounts on premiums for hybrid owners. However, this may not apply in every case, as hybrids are also typically more costly to repair. If you are considering purchasing a hybrid car, here are four ways that your premiums will be calculated:

1. Safety Ratings

Cars that receive high safety ratings are less likely to be totaled in an accident. Hybrid cars typically receive excellent safety ratings as they tend to be heavier than traditional vehicles, making them more durable. These safety ratings may shave a few hundred dollars off of your premiums every year, depending on your insurance company. If your goal is simply to own a hybrid, without having a specific model in mind, look for one that has received the best safety ratings among the different manufacturers.

2. Driving History

Studies have shown that hybrid owners are traditionally safer drivers than people who own traditional cars. A safe driving record that dates back at least three years can net you great discounts when it comes to your insurance policy. However, if you have a lead foot or seem to be a magnet for accidents, the discounts that you receive for owning a hybrid won’t save you any money.

3. Repair Costs

Insurance companies take repair costs for your vehicle into account when totaling your premiums. Because hybrid cars are more expensive to repair, they can potentially be more costly to insure. In fact, because hybrid vehicles are made with new technologies, not all mechanics are able to complete repairs on them, especially if they do not have the necessary training. If you are involved in an accident, you may have to take your car to a specialist to have the work done. Auto insurance companies know this and will adjust your rates accordingly.

4. How Discounts are Applied

If the discounts applied by your insurance agency are administered across the board, your savings can be significant. Unfortunately, many insurance companies only offer discounts on certain portions of their auto insurance policies. For instance, Traveler’s offers a great discount for hybrid owners, but that discount isn’t applicable to uninsured motorist and personal injury coverage. Before you choose an insurance company because of the hybrid discount they offer, be sure to ask how that discount is applied.

The bottom line is this: if you are considering buying a hybrid, you may save more on auto insurance that you would with a traditional vehicle. However, it is necessary to check which discounts your particular insurance company offers and how those discounts are applied. A hybrid vehicle may save some people a few hundred dollars on their car insurance premiums every year, but others may need to switch insurance companies if they want to get those same savings.

Juan Wright is a freelance writer who blogs about car insurance discounts. You can read more about discounts for owning a hybrid vehicle and search for affordable auto insurance deals at carinsurance.org.uk.

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