August 8, 2011

Hybrid Vehicles And How They Can Help Lower Insurance Rates

Hybrid vehicles have been promoted as the future of the car insurance industry. They provide excellent mileage per gallon, and with advancements in engine technology, many hybrids are as powerful as standard gasoline vehicles. Buying a hybrid can also lead to a lower auto insurance quote, although there are many factors to consider when trying to lock in a low premium with decent coverage.

The good news for hybrid drivers is that most car insurance companies now offer some type of hybrid discount. Hybrid vehicles are less likely to be involved in an accident, because their owners tend to be older individuals who are married, fiscally responsible and generally safe. Hybrid vehicles can also be difficult to steal, particularly if they don't have a common ignition system. Most car insurance providers will provide a discount of about 10% on a hybrid owner's auto insurance quote. Of course, auto insurance discounts vary greatly by insurer and by state, so hybrid discounts may not be available to all drivers. In general, hybrids will cost less to insure regardless of whether a discount is applied.

However, it's important to note that hybrid vehicles aren't necessarily less expensive to insure than gas guzzlers. There are many factors at play. The value of the vehicle will play a major role in setting insurance rates, as expensive vehicles are more likely to be involved in an expensive claim. While a hybrid vehicle may be less expensive to insure than a "normal" vehicle if both vehicles cost about the same, hybrids are necessarily more expensive than non-hybrids on average. There are also dozens of additional factors involved in an auto insurance quote, and things like a driver's record can have a much greater effect on rates than whether or not the policy holder's main vehicle is a hybrid. Insurance companies offer dozens of discounts, and while a hybrid discount is certainly notable, it's on par with safe driver discounts and good student discounts. Hybrids don't guarantee the lowest possible rate, although they're certainly less expensive to insure.

To get the lowest possible rates on auto insurance, drivers should gather a variety of quotes and look into discount programs before buying. When considering hybrids, it's especially important to look for quotes for different types of vehicles, as insurance quotes can make it much easier to gauge whether an energy-efficient car is worth the extra cash. Hybrid vehicles can certainly save a lot of money, both at the pump and in insurance premiums, but the best tactic is to carefully consider all of the costs of driving a new car before making a purchase.