Compare hybrid insurance

One of the main perks of owning a hybrid is its high fuel economy, which can save you big money over the life of the car. Unfortunately, the savings can stop there without shopping around for insurance.
The higher sticker price, higher cost to repair and the need for specialty mechanics can result in higher insurance premiums. And while some carriers offer green driver discounts, the discount doesn’t apply to your entire premium.

What kind of hybrid coverage do I need?

Your state’s insurance requirements may vary, but the following coverage options are often required to drive your hybrid:

• Liability. This insurance covers damages for a third-party if you crash your hybrid into another car or object. Most states require this coverage.
• Uninsured motorist. The state often requires uninsured or underinsured motorist coverage. But even if it’s not, you don’t want to be left having to pay expensive repair bills on your hybrid out-of-pocket.
• Comprehensive. Usually optional, a comprehensive policy covers damages to your hybrid that happen while you’re not driving it, such as theft, weather damage and vandalism.
• Personal injury protection (PIP). PIP provides coverage for medical costs regardless of who’s at fault in an accident.

What hybrid add-on coverage should I consider?

Consider these insurance add-ons for more coverage on your hybrid:

• Collision. Though this coverage is only required if you have a car loan, you might want it if you drive your hybrid a lot. This covers repairs to your car in an at-fault accident.
• Gap insurance. A new hybrid will start to depreciate the minute you drive it off the lot. Having gap insurance covers you so you’re not left paying off a loan that’s worth more than the depreciated value of your car.
• Roadside assistance. This provides help with a flat, a battery jump or a tow if you have trouble with your hybrid out on the road. You’ll want to make sure your roadside assistance covers towing to the specialty mechanic you’ll need to work on your hybrid.

Do different kinds of hybrid have different insurance requirements?

There aren’t many different categories of hybrids, but the hybrids listed below may come with higher insurance premiums.

• Luxury hybrid. Luxury brands cost more and have higher repair costs. If you choose a luxury brand hybrid, you’ll likely pay a higher insurance premium.
• Plug-in hybrid. Insurance premiums for plug-in models tend to be slightly higher than for other hybrids because they are more expensive cars. Plug-ins usually have larger batteries and more high-tech software and hardware.
• Hybrid SUV. Small cars tend to cost more to insure, so in theory, the SUV hybrid should have lower premiums. But the newness of the SUV hybrid models makes insurance rates difficult to predict.
  Hybrid coupe. Coupes usually come with a higher premium because insurance companies associate them with sports cars and riskier drivers.
• Hybrid coupe. Coupes usually come with a higher premium because insurance companies associate them with sports cars and riskier drivers.

How can I get cheap hybrid insurance?

Because rates on hybrids tend to be higher, look for savings where you can.

• Avoid luxury brands. Luxury cars come with a larger sticker price and a larger insurance premium. To keep your costs down, buy a standard-brand hybrid.
• Stick with trusted models. History and data make the longest-available hybrid models some of the cheapest to insure. Buying a brand new model may come with a higher premium as insurance companies try to figure out the risk.
• Go basic. Because hybrids can be more expensive to repair, sticking with the base model ensures you’re not adding high-end features to your hybrid that could raise your insurance premiums.
• Safety first. Safety and antitheft features go a long way to reduce your insurance rate, which puts you in good standing, especially if your hybrid has high safety ratings from organizations like the Insurance Institute for Highway Safety.

What should I watch out for?

• Higher deductibles. The advice to raise your deductible to save on your premium can be good. But for a hybrid with typically more expensive repair costs, having a higher deductible means having to pay much more out of pocket.
• Green discounts. Only a few carriers offer discounts on eco-friendly vehicles. But make sure you read the fine print before signing up. If the discount only applies to certain aspects of your premium and not the whole thing, you may find a better deal with a carrier who doesn’t offer a discount at all.

Bottom line

You will likely pay more for insurance on a hybrid than on its gas-guzzling equivalent. But as more hybrid models come out every season, and more studies prove that hybrids and their drivers are lower risk, the premiums on hybrids should start to come down. Make sure you get the right coverage at the right price now by comparing your car insurance options.

Frequently asked questions about hybrid insurance

• Will buying a used hybrid lower my insurance?

  Yes. Used cars tend to have lower insurance rates. But you’ll want to make sure to have the used car checked out by a specialized mechanic who knows about hybrids before purchase.

• Do hybrid cars require more maintenance?

  No. Hybrids need the same amount of maintenance as any other car, but some of your maintenance costs may be higher if it revolves around the vehicle’s eco-technology features.

• Are there other ways to save by buying a hybrid car?

  You may qualify for federal, state and local tax incentives on your purchase. And some states offer incentives to purchase hybrid and electric cars. For example, California has a Clean Rebate Vehicle Program, which offers eligible state residents up to $7,000 towards the purchase or lease of a plug-in hybrid or electric car to help offset the higher sticker price.