Are Hybrid Cars More Expensive to Insure?

The biggest advantage of owning a hybrid car is, it can run both gasoline and battery powered electricity. Typically, hybrid cars are more eco-friendly, and energy efficient. But do these advantages make hybrid cars more expensive to insure?

If you own a hybrid car, or if you’re on the verge of purchasing one soon, you might be wondering ‘are hybrid cars more expensive to insure?’ Generally, hybrid cars are more expensive to insure mainly because they’re relatively more expensive than standard cars, and they also require specialized parts and expert mechanics to repair.

Why are Hybrid Cars More Expensive to Insure?

Hybrid cars are typically a fusion of standard cars, and the next generation electronic vehicle (EV). Typically, a hybrid car has both internal combustion engine (ICE) which is the standard car engine that runs on gasoline, along with electric battery powered technology.

This dual power system makes hybrids more complex to manufacture and repair, leading to higher insurance costs. Here’s a detailed breakdown of the reasons why hybrid cars are more expensive to insure.

Also Read: Why is Auto Insurance SoExpensive in Michigan?

Hybrid Cars are Costlier to Repair and Replace

When it comes to repairing a hybrid car, it can be a lot more expensive than a standard car that runs on gasoline. For instance, the replacement cost of a new EV battery ranges from $5,000 to almost $20,000, whereas the cost of replacing an ICE car battery is roughly around $100 to $200.

Apart from the drastic difference in the cost of battery replacement, the cost of engine, and other spare parts of hybrid cars is significantly more expensive. Hybrid car repair costs are also more expensive especially because only specialized, and highly skilled mechanics can fix hybrid cars.

Car insurance is typically a financial backup to cover repair, and replacement costs up to your coverage limit. So, repair and replacements costs are significantly higher for hybrid cars that’s why insurance rates are relatively more expensive compared to standard cars.

Risk of Theft

Although the risk of theft is much lower of hybrid cars especially due to enhanced security features, and GPS tracking system, the cost of repaying the actual cash value of a stolen hybrid car can be significantly more expensive for insurers.

So, considering the risk of car theft your insurer may charge a higher premium for your hybrid car’s comprehensive car insurance, and gap insurance. According to the NHTSA, more than 1 million cars are stolen each year in the US.

Typically, the risk of theft varies significantly from one location to another, yet due to substantial risk your insurer will consider it is a concerning factor for determining your hybrid car’s insurance rate.

Hybrid Cars Have a Higher Purchasing Price than Standard Cars
Ultimately, the purchasing price of your car has a significant influence on the cost of your auto insurance premiums. In general, the purchasing price of hybrid cars can cost up to 20% more than gas powered cars.
Typically, the price difference between standard cars and their hybrid counterparts can range from a few thousand dollars to over $10,000.

For example, the price of the standard gas-powered Toyota 2022 RAV4 is $26,975, whereas its hybrid model RAV4 Hybrid is $29,575, and the plug-in hybrid model RAV4 Prime is $40,300.

Just like the Toyota 2022 RAV4, the price of standard gasoline and hybrid cars significantly vary. For some cars the price is the same, or the difference is quite negligible, whereas for others it can vary significantly.

Since hybrid cars are generally more expensive, their parts also cost more to repair and replace, contributing to higher insurance rates.

Evidently hybrid car insurance is more expensive compared to gas powered cars. So, it is essential to explore insurers that offer the cheapest and the most affordable rates with the best coverage limits.

If you’re looking for a reliable auto insurance agency in Michigan offering hybrid car insurance at reasonable rates with special discounts, consider exploring our car insurance solutions. Also, if you’re located in Flint MI, Saginaw MI, or MT Pleasant MI, you can even visit our regional office to consult with our insurance experts.

Are Hybrid Cars Safe or More Prone to Accidents?

When it comes to safety features and the chances of accidental collisions, hybrid cars are safer and are less prone to accidents compared to gas powered cars. However, some of the features and technologies used in hybrid cars also lead to substantial risks of accidental damage, and injuries.

For instance, according to a recent study it was found that pedestrians are twice as likely to get hit by hybrid cars as they are a lot quieter than gas powered cars. So, it’s harder to notice and evade a hybrid car that may accidentally hit a pedestrian.

On top of that, the batteries that are used in hybrid cars may explode upon a very hard impact. Although lithium-ion batteries are generally safe and aren’t prone to explosion, the possibility increases significant risks.

Also, as hybrid cars are heavier, it acts as a double-edged sword. It can absorb more damage in the events of accidental collisions with another vehicle or object, this drastically reduces the risk of bodily injuries.

But at the same time, it can cause greater damage to the other vehicle, which can severely injure the other driver and any other person in that vehicle. So, this can substantially increase your liability compensation.

Overall, hybrid cars are safe, but factors such as pedestrian risks, battery concerns, and their heavier build contribute to their higher insurance rates compared to gas-powered cars.

Average Insurance Rate of Hybrid Cars vs Gas Cars
Based on the average car insurance rates of hybrid cars are 7% more expensive compared to gas powered cars. Typically, it ranges from 5% to 10% or more! According to Zebra, here’s the average cost of gasoline and hybrid cars insurance in the US as follows.

• Average Gasoline Car Insurance Cost: $33,797

• Average HybridCar Insurance Cost: $39,040 (before tax and rebates)

The average car insurance rate can significantly vary whether it’s for your gas powered or hybrid car. Typically, your car insurance rate can vary based on factors such as,

• Age
• Driving Record
• Occupation
• Vehicle You Drive
• Insurance Claims History
• Driving License Status
• Location
• Credit History Marital Status

Tips to Lower Hybrid Car Insurance Costs

Many insurance companies offer special discounts of up to 10% for hybrid car insurance. But to be eligible for these discount offers it is also essential for you to have an active driving license, a clean driving record, and zero insurance claims.
Apart from these you can also consider the following tips to lower your hybrid car insurance cost as follows.

• Maintain a Clean Driving Record

• Apply Safe Driving Practices to Avoid Accidents

• Obey and Follow Traffic Rules

• Complete a Defensive Driving Course

• Opt for Telematics Car Insurance (Mileage Based Insurance)

• Bundle Insurance Policies

Final Remarks

In most cases hybrid car insurance is more expensive than gas powered cars, especially because hybrid cars are costlier to repair and replace. However, due to integration of superior technology and safety features, hybrid cars are generally safer which qualify for special insurance discounts.

So, while hybrid cars are generally more expensive compared to gas powered cars, with these special discounts the costs can go down significantly. Moreover, as hybrid cars are more eco-friendly, you can save more with tax rebates.

If you’re looking to explore hybrid car insurance at a reasonable rate here in Michigan, you can contact us to get a free quote and consultation today. One of our insurance experts will get in touch with you soon to understand your auto insurance needs and based on that we will offer you the most suitable auto insurance policy for your hybrid car within your budget.

FAQs

Is insurance more expensive for a hybrid car?

Yes, generally insurance is more expensive for a hybrid car especially because it’s more expensive to repair and replace. Typically, hybrid cars have a higher purchasing price compared to gas powered cars, leading to costlier spare parts and increased repair costs.

Why is my hybrid insurance so high?

Hybrid car insurance rate significantly varies based on its estimated repair and replacement costs. So, depending on the price of your hybrid car, its engine, battery, and other essential spare parts, your insurer will determine the insurance rate, along with many other factors of course. Hybrid cars require specialized parts and repair services, so that’s why it’s generally more expensive compared to gas powered cars.  

Do you actually save money on insurance with a hybrid car?

Well, it’s possible to save a substantial amount on insurance with a hybrid car, especially because many insurance companies provide special discounts for hybrid cars. Hybrid cars are eco-friendly, and they are built for safer driving compared to gas powered cars. So, it’s possible to get an affordable car insurance premium for your hybrid car.