It is important to understand the factors that go into determining the price of your auto insurance premiums. The type of vehicle you drive has a big impact on the price you pay for insurance every month. Many Americans have been trying to make the switch to an HEV. HEV is a common abbreviation used by insurance companies to mean Hybrid Electric Vehicle. This abbreviation describes a specific type of car that classifies the car beyond just make and model. There are key differences between this type of vehicle and other automobiles sold today. These differences can affect the prices of your insurance premiums.
This classification is needed for insurance companies because many car companies have been making more hybrid vehicles in recent years. An HEV is a car that has been designed to run on both fuel and batteries to improve gas mileage. Some hybrid model vehicles can get over 40 miles per gallon of gasoline, providing a much lower average fuel cost for the drivers. This upgrade in fuel efficiency comes with a few strings attached, though. An HEV is typically a bit more expensive to insure than a standard combustion engine automobile. The abbreviation is necessary for insurance companies so that they understand when a policy is being set up or placed on a hybrid vehicle.
Many car companies that produce hybrids use an existing model of a specific car and build in the hybrid technology to the car. This keeps the make and model the same, but adds the fact that it is a hybrid car. Hybrid cars are usually smaller and more expensive than their counterparts. Smaller and more expensive cars carry an increase in insurance rates because they are more likely to sustain serious damage on American roads. There are cars being produced currently that are entirely electric. An electric vehicle does not use any gasoline at all and runs on batteries charged at home or a charging station.
An electric vehicle is generally even more to insure than a hybrid vehicle. This is because an electric car is even smaller and more expensive than a hybrid, so it is also more likely to sustain serious damages in an accident. A HEV classification on your insurance policy just means that you have a hybrid or electric car instead of a car with the standard engine. These cars generally come smaller than their counterparts and cost more. The price and size of the vehicles is what drives the insurance cost up slightly. The increases in insurance rates for driving a HEV are not very large, but they will have an impact on your monthly costs. Speak with your insurance agent about electric vehicle insurance rates.