Why is hybrid car insurance more expensive?
Hybrid car insurance is more expensive because the technology that makes it more environmentally friendly also makes the vehicle more expensive to repair.
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UPDATED: May 3, 2022
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Manufacturers have touted the benefits of hybrid cars, but is hybrid car insurance more expensive than non-hybrid vehicles? Many consumers are surprised when they get their hybrid auto insurance bill and see higher-than-average rates.
Oftentimes, insurance rates for hybrid cars are more expensive than the same coverage for traditional vehicles. However, many factors impact what you pay for car insurance. That is why car insurance rates by state can vary drastically.
Read our comprehensive guide to better understand the reasons for the price discrepancy and to learn a few tricks to save money.
When you buy hybrid car insurance, make sure you’re getting the best deal. Save money on hybrid car insurance by entering your ZIP code into our FREE tool above.
Insurance For Hybrid Cars
After receiving hybrid car insurance quotes, many drivers of hybrid vehicles are left asking, are hybrids more expensive to insure? Using premiums for seven popular hybrid vehicles, we found the average hybrid car insurance rates to be around $124 per month or $1,486 annually.
So, is it more expensive to insure a hybrid car? According to the Insurance Information Institute, the national average cost of car insurance in 2017 was $83 per month or $1,004 annually.
In the battle for lower insurance costs for hybrid versus conventional gas cars, conventional vehicles win by $41 each month.
Take a look at the following table to see average annual car insurance rates for different hybrid vehicles.
Hybrid Car Make and Model Average Annual Full Coverage Car Insurance
Toyota Prius $1,306
Subaru Crosstrek Hybrid $1,320
Honda Insight $1,372
Hyundai Sonata Hybrid $1,498
Toyota Camry Hybrid $1,550
Ford Fusion Hybrid $1,644
Chevrolet Volt $1,712
What is the most cost-effective hybrid car to insure? Good news for those wondering if a Prius is more expensive to insure. By our calculations, the Toyota Prius proves to be one of the cheaper green vehicles for car insurance. However, Prius owners still pay $25 more per month than average.
Some drivers wonder, does car insurance cover hybrid batteries? Unfortunately, car batteries are not usually included in insurance policies.
Fortunately, there are still ways to lower your premiums. We recommend you start by comparison shopping and looking for hybrid car insurance discounts.
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Why is car insurance for hybrid cars so much higher?
Now that you know insurance is more expensive on hybrids when compared to the national average, let’s figure out why.
Surprisingly, the same features that make hybrid and electric vehicles environmentally friendly and give them excellent gas mileage also make them more expensive to insure.
Hybrid technology is expensive. While the market has grown over the past few years, the assortment of parts for a Toyota Prius, Honda Civic Hybrid, or other vehicles are not as widespread and standardized as with gas-powered cars.
Another reason why hybrid vehicles are more expensive is because of their price. Part of the insurance premium is based on your vehicle’s sticker price. New hybrids often cost more to insure than economy sedans.
Are repairs on hybrid cars more expensive? Yes, often, these vehicles require specialized training and equipment. The number of mechanics who have the knowledge and skills to work on a hybrid car is limited, so hourly service charges are higher.
The insurers pass these extra expenses onto the drivers through higher hybrid car insurance prices.
Hybrid owners like to drive. Due to the substantial fuel savings, people who choose hybrid and electric vehicles tend to clock more driving hours than the public.
Hybrid drivers also tend to live in urban areas, and insurance rates are more costly in populated cities. Cities mean more gridlock traffic, longer commutes, more accidents, and more traffic tickets. That also leads to higher insurance rates.
However, a handful of hybrid vehicles have been named as 2022 top safety picks by the Insurance Institute for Highway Safety. Both the Subaru Crosstrek Hybrid and the Honda Insight appear on the list.
Learn what a top safety pick means in more detail in the following video from the Insurance Institute for Highway Safety.
Insurance rates for the Subaru Crosstrek and Honda Insight will likely be lower due to the impeccable safety ratings.
Ultimately, insurance companies pay more to repair a hybrid vehicle that has been in an accident or vandalized. Therefore, the hybrid car insurance rates are also higher.
Best Car Insurance for Hybrid Cars
According to a recent survey commissioned by a major automotive site, 18 out of the 20 least expensive hybrids to insure still cost more than their gasoline counterparts.
For 2011 models, the Toyota Camry, Ford Fusion, and Toyota Highlander hybrid models cost $250 to $350 more to insure each year.
Only the Toyota Sequoia and GMC Sierra have been distinguished as better insurance bargains than their gasoline versions.
While insuring hybrid and electric automobiles may be more expensive than gas-powered vehicles, savvy consumers can use these tips to slash their rates:
Shop Around. By conducting a hybrid car insurance comparison, drivers can save hundreds of dollars per year. Because every comparison is based on the same coverage limits and deductible, a customer can make an informed decision about the low-cost car insurance for his or her needs.
Ask for Discounts. While most insurers automatically apply relevant discounts to their customers’ policies, asking for additional savings can never hurt. Hybrid car insurance discounts are commonly granted for crash safety and theft prevention devices, new customers, returning customers, and safe driving.
Raise the Deductibles. A policy’s collision and comprehensive deductibles are the amounts a policy owner would have to pay out of pocket in the event of an accident, wind, hail, fire, vandalism, or theft claim.
Lower the Coverage Limits. Each state mandates its minimum insurance requirements, but as long as those levels are met, drivers can insure their vehicles for as much or as little as they can afford.
Hybrid car insurance rates are predicted to fall by 2020 as the number of hybrid SUVs, trucks, and cars on the road increased. The trend appears to be happening slowly but surely.
So, do hybrid cars really save you money? Unfortunately, hybrid vehicles tend to cost consumers more than other car models. However, you will save upwards of 30 percent on fuel costs.
Are hybrid cars cheaper to insure than other vehicles? No. Currently, owners of fuel-efficient cars need to rely on discounts and insurance comparison sites to find the most affordable deals.
Before making any final decisions about your insurance company, it is important to learn as much as you can about your local insurance providers, and the coverage they offer. Call your local insurance agent to clear up any questions that you might have. Questions to consider asking include, “What is the best coverage plan for me/my family/my situation?” “What are the minimum coverage requirements in my state and what form of coverage do you recommend?” “Do you guys offer any bundle discounts if I take out both my auto insurance and home insurance with you?” and “What is the average rate of insurance quotes you guys offer?”
Before making any big insurance decisions, use our free tool to compare insurance quotes near you. It’s simple, just plug in your zip code, and we’ll do the rest!
Find affordable hybrid car insurance near you — Start comparing cheap hybrid car insurance rates by entering your ZIP code into our FREE quote tool.