Insurance Discounts for Hybrids?

Insurance Discounts for Hybrids?

While the tax credits for hybrids are fast disappearing as more and more people are going green (and saving money on gas), there are still other financial advantages of hybrid ownership.

Hybrid auto insurance discounts vary greatly from company to company, and are not applicable to all coverage. Farmer’s was the first company to offer a generic “hybrid discount,” and their reduction is about 5%, but is limited to California residents. Traveler’s was the first to advertise a national discount program. It’s a reduction of up to 10%, but there are specific requirements. Other major insurers have since jumped on the hybrid discount bandwagon, and offer “hybrid discounts” of 7-10%.

Other Discounts Available

Despite these hybrid discounts, insuring an “alternative fuel” car is still pretty pricey, because there are fewer accident statistics available to insurance industry analysts, and because of the specialized parts that require equally specialized repair shops.

Hybrid drivers, however, tend to be safe, experienced drivers from upper-middle-class socioeconomic backgrounds, and it is that trend that allows for savings. Translation: while you may not get a huge discount just because of your car’s eco-friendly status, you can add to the hybrid discount with others, to increase your savings.

What are those other discounts? Here is a representative sample:

  • Auto/Home/Life Bundling: If you bundle all of your insurance policies with one insurance company, you’ll save some money (2-3% ) on all of them. If life insurance isn’t part of your package, don’t despair. You’ll still save money by bundling just auto and home coverage.
  • Anti-theft Devices: If your hybrid is fitted with an alarm system, engine immobilizer, or a tracking device, like LoJack, you may qualify for a discount on your insurance.
  • Low Mileage: Hybrids are hardly meant for routine long-haul treks. If your mileage is lower than 14,000 miles/year, you probably qualify for a low mileage discount.
  • Mature Driver/Good Student: Since hybrid drivers tend to be well-established in life, and in their professions, it’s quite possible your age will earn you a “mature driver” discount. If you’re the parent of teen drivers, you can capitalize on their good grades with a “good student” discount as well, but be aware teen insurance is still expensive no matter what powers the vehicle.
  • Defensive Driving: Did you know you can get cheaper insurance by taking a class? Most insurance companies offer a 3-year/3% discount for clients who take defensive driving classes when they do NOT have a traffic ticket to erase, and after the three years are up, you’re allowed to repeat the course, and reinstate the discount.

Of course, the discounts listed above are just some of the ways hybrid drivers can maximize their savings. You can also raise your deductible, which will lower the premium you pay, for example. When you are next shopping for new insurance, or negotiating a renewal with your existing provider, be sure to ask what other discounts and credits they offer.

View Comments (1)

1 Comment

  1. Cathy L. Oliver

    November 20, 2009 at 10:51 am

    Well between you, I and the brick wall. The Lowest Priced Auto Insurance Policy is not always the Best . However it does pay to shop around and get numerous auto insurance quotes.

Leave a Reply

Your email address will not be published. Required fields are marked *


More in Hybrids

Chevy Volt

Discover the Range of Hybrid Car Options

adminApril 10, 2013
Acura RLX

Honda Goes Hybrid With the Acura RLX

adminApril 9, 2012
2012 Toyota Prius V

The 2012 Toyota Prius V Five

adminMarch 1, 2012

On a Budget? The Affordable 2012 Toyota Yaris Hybrid

adminFebruary 20, 2012
Ford C-Max Energi Wins 2012 Green Car Vision Award

2012 Green Car Vision Award Goes to Ford C-Max Energi

SarahFebruary 2, 2012
Chevy Volt Car Pool Lane Access

Carpool Lane Access Granted to California Chevy Volt Drivers

adminFebruary 2, 2012
Chevy Volt Plugged In

Canadian Condo Owner Not Allowed to Charge Chevy Volt Electric Car

adminFebruary 1, 2012
ford-toyota hybrid drivetrain agreement

Ford and Toyota Partner for Hybrid Trucks and SUVs

JakeAugust 22, 2011
leonardo dicaprio fisker karma

Lenoardo DiCaprio Buys Fisker Karma Hybrid Supercar

JakeAugust 19, 2011
2012 Toyota Prius Plug-in

2012 Prius Plug-in Details

JakeAugust 8, 2011
SUV plugin hybrid

Mitsubishi Launching Outlander Sport Plug-in Hybrid SUV

JakeJuly 11, 2011
Ford Fusion Hybrid

Expect 48 MPG City from Next-Gen Ford Fusion Hybrid

JakeJune 14, 2011