Hybrid Car Insurance Discount

Car insurance discounts are all the rage these days. Everybody’s looking for a way to save a few bucks, ideally without sacrificing coverage. Of course, price isn’t the only factor when choosing an insurance company. The more specialized your vehicle, the more factors come into play. For example, if you drive a restored classic car, there are select few companies that will value your car with all the upgrades and work. The typical insurance company just looks at the age of your car. So if something happened to it, low costs would not balance out actual losses.

The same can be said in a way for hybrid vehicle insurance. Many used hybrids sell for more than they do when you take them off the lot brand new. Parts can be more challenging to find for older hybrids, and cheap car insurance that also covers your most important needs isn’t the same.

Companies like State Farm claim you can save up to 40% via discounts, but that doesn’t mean a whole lot if the starting price on the insurance premium is much higher than competitors. Presentation isn’t everything. No matter what you drive, you should always look at the final package. What is the final price on your liability coverage, collision coverage, etc.? Does the coverage make sense for your car and family situation?

At the same time, you should always be sure to inquire about any and all possible discounts (such as good student discounts, good driver discounts, etc) to ensure you receive the lowest possible price.

For example, if you drive a Hybrid or similar low-emission vehicle, you may be able to get a discount, depending on who you obtain your car insurance from.

Are hybrid cars cheaper to insure with the right carrier?

Hybrid cars aren’t necessarily cheaper to insure than standard vehicles, but car insurance companies are able to offer a discount for hybrid vehicles. Research has shown that their drivers fall into a lower-risk category (how car insurance rates are determined). Your auto policy rates are based on risk factors ranging from your driving record and credit score to how many safety features your car has and the replacement cost. When combined with the fuel savings and conservative driving habits, the savings add up quickly. Insurance costs are just one aspect. (For more information, read our “Is insurance cheaper if you own the car?“)

Farmers Insurance offers a 10% discount on car insurance to drivers of “Alternative Fuel Vehicles,” available for both electric-and-gasoline hybrid vehicles and dedicated-fuel vehicles that use qualifying alternative fuel. It’s automatically calculated into your insurance quote when you put in your VIN.

That’s on top of many other possible auto insurance discounts including good driver, safe driver, multi-car, and the presence of anti-theft and/or antilock brakes. Clean driving records go a long way. But if that’s the only way you save, you’re missing out on competitive rates with your auto insurance.

Travelers also offers a 10% discount to the owners of hybrid cars and boats, and Geico offers a 5% discount on certain coverages for insured hybrid vehicles.

Keep in mind that not all car insurance companies offer a hybrid discount, but it doesn’t hurt to ask – the savings could be significant, especially if you’ve got a few hybrids in the driveway.

Read More:

• Car Insurance Discount for Having a Dash Camera
• Car Insurance Discounts: The Best Ways to Save Money
• Is insurance cheaper for cars or trucks?
• How to Get Cheap Car Insurance

Tip: If you’re working with an independent insurance agent, be sure to remind them that you may qualify for a hybrid discount when they compare insurance quotes from multiple companies.

(photo: joi)