Car Insurance for Hybrid Cars: What You Need to Know

Hybrid cars are becoming more popular every year, as more drivers are looking for ways to save money on gas and reduce their environmental impact. According to Statista, hybrid electric vehicles accounted for 4.8% of new car sales in the U.S. in 2020, up from 3.3% in 2019 1. Hybrid cars offer many benefits, such as better fuel efficiency, lower emissions, and tax incentives.

But what about car insurance for hybrid cars? How does it differ from car insurance for conventional cars? How much does it cost and what does it cover? And how can you find the best car insurance for your hybrid car?

In this article, we’ll answer all these questions and more. We’ll explain the main types, costs, and discounts of car insurance for hybrid cars. We’ll also give you some tips on how to compare quotes and find the best car insurance for your hybrid car.

Types of Car Insurance for Hybrid Cars

Car insurance for hybrid cars is similar to car insurance for conventional cars in many ways. You still need to have the basic types of car insurance that are required by law or by your lender or leasing company, such as:

• Liability insurance: This covers the damage and injuries you cause to others if you’re at fault in an accident. It includes bodily injury liability and property damage liability.
• Collision insurance: This covers the damage to your car if you’re involved in an accident with another car or object, regardless of who is at fault.
• Comprehensive insurance: This covers the damage to your car caused by events other than collisions, such as fire, theft, vandalism, hail, flood, or animal strikes.
• Personal injury protection (PIP) or medical payments (MedPay): These cover the medical expenses for you and your passengers if you’re injured in an accident, regardless of who is at fault.
• Uninsured/underinsured motorist (UM/UIM) coverage: These cover the damage and injuries you suffer if you’re hit by a driver who has no insurance or not enough insurance.

However, there are also some specific types of car insurance that are designed for hybrid cars, such as:

• Hybrid battery coverage: This covers the cost of replacing or repairing your hybrid battery if it’s damaged or fails due to an accident or a defect. Some insurers include this coverage as part of their comprehensive or collision policies, while others offer it as an optional add-on.
• Mechanical breakdown coverage: This covers the cost of repairing or replacing your hybrid system components if they break down due to normal wear and tear or a defect. This is similar to an extended warranty, but it’s offered by your insurer instead of your manufacturer or dealer.
• Gap insurance: This covers the difference between what you owe on your car loan or lease and what your car is worth if it’s totaled in an accident. This is especially important for hybrid cars, which tend to depreciate faster than conventional cars.

Each type of car insurance for hybrid cars has its own benefits and limitations. For example, hybrid battery coverage can save you thousands of dollars if your battery fails, but it may not cover damage caused by improper maintenance or installation. Mechanical breakdown coverage can help you avoid costly repairs, but it may not cover routine services or tune-ups. Gap insurance can protect you from being underwater on your loan or lease, but it may not cover any fees or penalties associated with ending your contract early.

Therefore, before you buy any type of car insurance for hybrid cars, you should read the policy details carefully and understand what is covered and what is not. You should also compare different policies and providers to find the best deal for your needs.

Costs of Car Insurance for Hybrid Cars

One of the most common questions that hybrid car owners have is: How much does car insurance for hybrid cars cost? The answer is: It depends.

There are many factors that affect the cost of car insurance for hybrid cars, such as:

• Your vehicle value: The more expensive your car is, the more it costs to repair or replace it, and the higher your premium (the amount you pay for your insurance).
• Your repair costs: The more complex and specialized your car parts are, the more they cost to repair or replace them, and the higher your premium.
• Your safety features: The more safety features your car has, such as airbags, anti-lock brakes, or blind spot detection, the lower your risk of getting into an accident or getting injured, and the lower your premium.
• Your theft risk: The more attractive your car is to thieves, the higher your risk of losing it to theft or vandalism, and the higher your premium.
• Your driving record: The more accidents or violations you have on your record, the higher your risk of filing a claim, and the higher your premium.
• Your location: The more traffic, crime, or weather hazards in your area, the higher your risk of getting into an accident or suffering damage, and the higher your premium.
• Your mileage: The more miles you drive, the more wear and tear on your car, and the higher your risk of getting into an accident, and the higher your premium.

According to NerdWallet 2, car insurance for hybrid cars is generally more expensive than car insurance for conventional cars. On average, hybrids cost around 7% more to insure than gas-only cars, but there are variations based on the make, model, and year of the car. For instance, drivers who own a Tesla Model Y pay an average of $1,128 per year for collision coverage, while drivers who own a Honda CR-V pay only $423 per year 2.

However, there are also some ways to lower the cost of car insurance for hybrid cars, such as:

• Choosing a higher deductible: The deductible is the amount you agree to pay before your insurance kicks in. The higher your deductible, the lower your premium, and vice versa. However, you should only choose a deductible that you can afford to pay in case of a claim.
• Driving less: The less you drive, the less you expose yourself to potential accidents or damages, and the lower your premium. Some insurers offer low mileage discounts or pay-per-mile policies for drivers who drive less than a certain number of miles per year.
• Shopping around: The best way to find the cheapest car insurance for hybrid cars is to compare quotes from different insurers. You can use online tools or agents to help you find the best deal for your situation.

Discounts of Car Insurance for Hybrid Cars

Another question that hybrid car owners have is: Are there any discounts for car insurance for hybrid cars? The answer is: Yes.

There are several types of discounts that are available for hybrid car owners, such as:

• Green vehicle discounts: Some insurers offer discounts for drivers who own hybrid or electric vehicles, as a way to reward them for being environmentally friendly. These discounts can range from 5% to 10% off your premium, depending on the insurer and the state.
• Low mileage discounts: Some insurers offer discounts for drivers who drive less than a certain number of miles per year, as a way to reward them for saving fuel and reducing emissions. These discounts can range from 10% to 40% off your premium, depending on the insurer and the mileage limit.
• Safety feature discounts: Some insurers offer discounts for drivers who have safety features on their cars, such as airbags, anti-lock brakes, or blind spot detection. These features can reduce the risk of getting into an accident or getting injured, and lower the cost of claims. These discounts can range from 5% to 30% off your premium, depending on the insurer and the feature.

According to Forbes 3, car insurance discounts for hybrid cars are not as common or as generous as they used to be. This is because hybrid cars are becoming more mainstream and less expensive than before. Also, some insurers have found that hybrid car owners tend to file more claims than conventional car owners, due to their higher mileage and repair costs.

However, there are still some ways to qualify and apply for discounts for hybrid car owners, such as:

• Checking with your insurer: The best way to find out if your insurer offers any discounts for hybrid car owners is to ask them directly. You can call them or visit their website to see what discounts they have and what requirements you need to meet.
• Maintaining a good driving record: The best way to lower your premium and qualify for discounts is to maintain a good driving record. This means avoiding accidents, violations, or claims as much as possible. You can also take a defensive driving course or install a telematics device to prove your safe driving habits.
• Installing anti-theft devices: The best way to protect your car from theft or vandalism is to install anti-theft devices, such as alarms, locks, or trackers. These devices can deter thieves or help you recover your car if it’s stolen. They can also lower your premium and qualify you for discounts.

Conclusion

Car insurance for hybrid cars is similar to car insurance for conventional cars in many ways. You still need to have the basic types of car insurance that are required by law or by your lender or leasing company. However, there are also some specific types of car insurance that are designed for hybrid cars.

Car insurance for hybrid cars has its advantages and challenges. On one hand, it can protect you from paying out of pocket for repairs or replacement of your vehicle if it’s damaged in an accident. It can also give you more flexibility and control over your claim process. On the other hand, it can cost more than car insurance for conventional cars due to higher vehicle value repair costs, and theft risk. It can also be harder to find discounts for hybrid car owners.

However, there are also some ways to lower the cost and maximize the benefits of car insurance for hybrid cars. You can choose a higher deductible, drive less, shop around, check with your insurer, maintain a good driving record, and install anti-theft devices.

If you own or plan to buy a hybrid car, you should compare quotes and find the best car insurance for your needs. You can use online tools or agents to help you find the best deal for your situation. You can also read reviews and ratings of different insurers and policies to see what other hybrid car owners have to say.

Car insurance for hybrid cars is not as simple or as cheap as it may seem. But it can be worth it if you want to save money on gas and reduce your environmental impact. By understanding the types, costs, and discounts of car insurance for hybrid cars, you can make an informed decision and find the best coverage for your hybrid car.