Can a Hybrid Car Reduce Your Insurance Premiums?

There are many reasons one can decide to buy and drive a hybrid vehicle. It may be due to concern over climate change issues, or a means of reducing dependency on fuel.  It may also be a way to reduce overall gas costs or it could be that the driver doesn’t want to contribute to local pollution problems, regardless of climate change concerns. Another reason could be that drivers want to lower their insurance premiums.

Hybrid Drivers Less Risky

It is unlikely that a driver who chooses a hybrid vehicle does so to be flashy or to drive a car able to race down the highway at the speed of sound. Insurance companies generally see hybrid car drivers as a safer bet than drivers who have other types of vehicles, such as sports cars and other non-hybrids. If a driver’s actual record supports this impression, that driver could end up with significant discounts from insurers.

Less Hybrid Theft

Institutions that study stolen vehicle figures in the U.S. notice that a higher percentage of stolen vehicles are older because technology makes it more difficult to steal newer models. Hybrid cars, which are relatively new to the auto world, are definitely benefiting from this trend. Of the top 10 types of vehicles stolen in 2010, none were hybrid models.

Newer Cars, Newer Technology

As noted above, the newer your car is the more it benefits from new technology, but that can be a double-edged sword. When hybrids first hit the road, they were difficult and expensive to fix or replace, prompting higher insurance limits and premiums. Newer hybrid vehicles are more mainstream and not as costly to repair or buy.

The good side of the technology sword is that it introduces many more safety features than had previously been available. From back-up cameras to blind spot detection, discounts abound when insuring a new hybrid vehicle based on the safety-oriented technology.

Nothing matters as much as your own driving record when an insurer evaluates you for a policy. Luckily, you can control your driving record from this point forward by following traffic laws and driving your new hybrid vehicle with caution. If you have questions about other ways to reduce premiums or to get a free Austin auto insurance quote, give us a call at 512-518-6292.

 JG