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There are many things you have to consider before you choose your next vehicle. If you are thinking about a hybrid, chances are you’ll have a lot of questions. For example, are hybrids more expensive to insure? You might need to shop around for insurance before you make up your mind.
Side-by-Side Comparison of Hybrid and Gas-Only Car Insurance
Generally, hybrid cars are more expensive to insure compared with a similar size and specification gas version. Insurance companies know that people buying a hybrid are saving on fuel and tend to cover more miles as well. This means that some of your fuel savings will be eaten up by higher insurance costs. On average, hybrids cost around 7% more to insure than cars that are gas-only, according to NerdWallet, but there are variations based on the make, model, and year. As an example, a hybrid Honda Civic comes with a lower premium than its gas version. At the same time, you can save up to 11.8 percent on the Highlander if you buy a hybrid.
Why Hybrids Are More Expensive To Insure
The main reason why insurance companies charge you more to insure a hybrid is that they are worth more. Buyers still pay a high premium for buying the latest hybrid technology. If your car gets stolen or totaled, your insurance will have to cover a higher cost.
Another reason why you might pay extra for insuring a hybrid is that the parts are more expensive. Therefore, if the car is damaged, the cost of repair will be higher.
Further, the average damage claim for hybrids is significantly higher, so you are considered to be a higher-risk driver if you drive one of the fuel-efficient models, according to CDG Insurance.
Another reason why it might be more expensive to insure a car is hybrid drivers’ behavior. Those who invest in a hybrid vehicle are more likely to drive longer distances and in peak traffic, and their main motivation is to save fuel and money during the rush hour.
Of course, there are additional reasons why it will cost you more to insure a hybrid:
- Higher mileage covered by hybrids due to the lower cost of driving.
- Astronomical repair costs, due to not only higher part prices, but also the need for specialist mechanics. Even aftermarket parts are expensive due to the lower demand.
- Low number of hybrids on the road. It is not as common as it could be to own a hybrid, which means that you will need to pay for specialist services. Americans are still skeptical about the safety and reliability of hybrids.
- More fragile materials are used for the construction of smaller hybrid city cars than SUVs.
- Hybrids have a higher risk of accidents involving pedestrians or cyclists due to their low noise level on the road.
Are Hybrid Cars Safer or More Dangerous To Drive?
The simple answer is that hybrid cars are safer to drive on average, and the fatality rates of accidents are lower. However, the repair costs are higher, no matter how safe the car is. Therefore, you will have to pay extra for the safety. In fact, many hybrids have made it to our list of the Cars with the Best Safety Ratings.
Hybrids’ safety records show that they are not more dangerous than the gas-fueled versions. They perform the same or better in high-speed collisions. This is mainly due to the safety features manufacturers include in the latest hybrids.
How Much Does It Cost To Insure a Hybrid on Average?
It depends on the price of the car, the year, and your driving habits. If you have an expensive car, you can expect to pay more, anyway. We have a list of some of the cheapest cars to insure. Here are some of the things car insurance companies take into consideration when calculating your premium:
- Your driving history. The longer you have had a clear license, the better price you will get.
- The price of the car. The more your vehicle costs, the higher your premium will be.
- Your age, occupation, and marital status. Teenagers with limited driving history usually pay thousands more per year.
- Your credit history. If you have bad credit, you are likely to pay more.
- What you drive. Insurance companies look at the safety record of the model and the average repair costs.
The Total Cost of Running a Hybrid Car — Give or Take
While you are going to save at the pump and cover longer distances for less, you will have to pay a higher initial price for a hybrid. You will also have to face higher maintenance costs. For example, the repair of the hybrid is more expensive apart from the general maintenance, such as oil change and air conditioning checks.
On top of the higher maintenance costs, you will also have to face higher insurance costs, which are related to higher mileage and more expensive repair and part costs. It is up to you to decide whether paying more upfront as well as on repair and insurance is worth it based on how much you save on fuel each year.
How To Get a Good Price on Your Hybrid Insurance
Thankfully, as the popularity of hybrids grows, insurance companies are more likely to consider offering discounts. For example, if you use Geico, you get 5 percent off for a hybrid, while Travelers and Farmers have 10 percent off for those who drive them.
There’s good news on the horizon based on the latest data: Hybrid drivers usually cover fewer miles and are generally safer drivers, so sooner or later, insurance companies are going to pass on the discount.
You will also have to choose a model that has been around for a while and has a good safety record. The reason why insurers charge more is that they have limited knowledge about the car. The more common the model is, the more likely you will get a good price.
Sources Used:
https://www.nerdwallet.com/article/insurance/quotes-hybrid-gas-vehicles
https://auto.howstuffworks.com/are-hybrid-cars-more-expensive-to-insure.htm
https://cdginsurance.com/why-insurance-for-hybrid-cars-is-more-expensive
https://www.autoinsurance.org/how-your-hybrid-just-might-cost-you-more-in-auto-insurance/
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