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Hybrid cars have gained popularity in recent years. The rising gas prices make their fuel efficiency very attractive, and as hybrid car technology develops and improves the cars will become more popular among drivers. The government has even offered tax credits to people who purchase hybrid cars. If you are considering buying a hybrid vehicle, you may be wondering how your car insurance rates will be affected by the hybrid vehicle.
Do hybrid cars have cheaper insurance rates, or are they more expensive to insure? The answer to this question is not as simple as “yes” or “no.”
What goes into Car Insurance Rates?
Car insurance rates are calculated upon dozens of factors, including a person’s driving history, their credit score and where they live. The type of vehicle being insured also plays a large role in the cost of the policy. Generally, an insurance company looks at two factors when determining how much a vehicle should cost to insure: How likely is that vehicle to be involved in an accident, and how much would it cost to repair or replace?
Vehicles with high safety ratings are less expensive to insure than those with known safety issues. Because they are less likely to be involved in a car accident, they are less of a risk for the insurance company. Additionally, some cars sustain less damage in car accidents than others do; vehicles that are built sturdily will sustain less damage in an impact.
If a vehicle is involved in a car accident, the cost of repairs plays a major role in the insurance rates charged for that vehicle. If a car is very expensive to repair, the insurance company will pay more for that claim settlement than they will for a car that is cheap to repair. Cars could be difficult to repair due to the cost of parts or difficulty of labor.
Some of the most expensive cars to insure include sports cars and luxury vehicles because both car types tend to be very costly to own and repair. Foreign-made vehicles will often be more expensive to insure than domestic since parts might be more difficult to obtain.
How do Hybrid cars fare compared to traditional gas vehicles?
Hybrid vehicles fall in the middle of the determining factors for car insurance rates. On the one hand, hybrid cars tend to have excellent safety ratings. They are slightly heavier than regular fuel-driven cars and substantially heavier than electric cars. This added weight can make them sturdier and less likely to get into certain types of accidents.
People who drive hybrid vehicles also tend to be safe drivers. As a demographic, hybrid drivers are conscientious; they often have a better driving record than people who choose to drive other sorts of vehicle.
On the other hand, hybrid vehicles are expensive to work on. Because they work differently than fuel-driven cars, many mechanics are not able to work on these types of vehicles. Depending on the type of repairs required, you may need to take the car to an expensive specialist.
Additionally, hybrid cars often cost more than standard fuel-driven cars of a similar kind. Because the technology is new, these cars are more expensive than other vehicles on the market. If a hybrid car is totaled out as a result of an accident, the insurance company will need to pay more to reimburse the vehicle’s owner than if they owned another type of car.
The Bottom Line
Overall, hybrids may be more expensive to insure than some cars, but they will be less expensive than others. Ultimately, the cost of the vehicle is only one factor involved in car insurance calculations. As technology improves and these vehicles become more mainstream, repair costs will go down; the popularity of these vehicles will also cause their price to drop in some cases.
Eventually, hybrid cars may become some of the least expensive vehicles to insure. In the meanwhile, the money saved on gas is still enough incentive for many people to choose to purchase them. If you are considering buying a hybrid vehicle, you can call your insurance agent and get a quote for the new insurance rates. By knowing in advance what kind of effect a new vehicle may have on your policy, you can decide what the best option for your family is.
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