Hybrid Cars Have Cheaper Car Insurance?
Reader’s Question:
I live in Las Vegas, Nevada and is it true that hybrid cars are cheaper on insurance because they have less power?
Donna
Las Vegas, NV
Hybrid cars may or may not be cheaper than vehicles with a normal gas or diesel powered engine. It depends on the underwriting rules and guidelines of an individual car insurance company to determine rates for vehicles, such as hybrids.
There are some insurers in Las Vegas, NV that offer discounts if you have a hybrid vehicle. Once such company is Travelers car insurance, in 2006 they became the first car insurance company to offer a discount for hybrid drivers through the whole US. They rolled out a state by state discount and thus by 2007 have 44 states in total that they offer this discount in.
Travelers offers the discount to hybrid owners because their studies has shown that hybrid drivers typically are lower risk drivers. Their research shows that many hybrid buyers are married, between the ages of 41 and 60 and safer on the road then many drivers. They are mature, experienced drivers that are trying to save on gas costs and thus are not typically known to be “lead” foots or risky drivers. There are other car insurance providers though that may actually charge more to insure a hybrid. This is because of the cost of repairs being higher than the same model with a gasoline engine. There are also more components to replace if certain areas of a hybrid car are damaged or inoperable.
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