Hybrid Car Insurance

We all know hybrid vehicles are generally more expensive to buy than their gasoline counterparts. In exchange they are cheaper to operate because the gas mileage is so much better. But what about insurance rates?

Some insurance companies offer discounts for hybrid vehicles. Travelers Insurance has offered a 10% discount. CarInsurance.com writes:

Travelers offers the discount to hybrid owners because their research has shown that hybrid drivers typically are lower risk drivers. Their statistics show 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 normally known to be "lead" foots or risky drivers.

However, some insurers actually charge more for hybrids because they are more expensive to repair is they are damaged, or replace if they are totaled.

According to insurance giant Allstate (the good hands people), a report released by Mitchell, a company providing information for property and casualty claims, said hybrids average a 6.5% higher claim rate than regular vehicles.

"Powering these higher hybrid claims costs is a significant change in the hybrid driver profile - from the eco-conscious consumer to a new base of buyers interested in cutting fuel expenses associated with long commutes," says Mitchell vice president of industry relations Greg Horn. "The result is an entirely new risk profile for hybrid vehicle drivers, who will likely see their insurance rates continue to increase."

So the best advice is the usual advice -- shop around for the best insurance rates.

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