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Will my hybrid help me save money on my auto insurance?

by Anita Johnston on 12/27/2010 07:37 AM

If you want to rush out and purchase a hybrid to get better rates on auto insurance, you had better do some research first, or you may not be as pleased as you might imagine.

In October of 2005, Farmers Insurance Group of Companies released a press release stating they were offering a 5 percent discount for all of their policy holders that drove hybrids. In February of 2006, Travelers Insurance Group announced a 10 percent discount for their policy holders that drove hybrids. This seems to be a growing trend today, however, not every insurance company has jumped on this band wagon as of yet.

You may be able to receive a discount by driving a hybrid according to the insurance company that is covering your car. You must also remember that if the person driving the hybrid is a teenage male, the insurance rates are still going to be more. Insurance companies take many factors into play when determining the rates of insurance for each person individually.

The insurance company will still look at a person’s age, driving record, credit rating, and where they live before they offer discounts. Even with a discount for driving, a hybrid if you are in the high risk category you will still be paying more for insurance than some with an excellent driving record.

Some insurance companies will offer discounts for driving a hybrid while others will not offer a discount at all. In most cases, hybrid drivers are placed into a less risky category and are considered to be more safety conscious. Along with this, hybrid drivers are often older married individuals, which receive discounts for other factors as well.

There are some insurance companies that will not lower rates for hybrid owners at all. The main reason this is true is that these cars are pretty new on the market and on the roadways. They are more likely to need more repairs and have electrical components that cost more to be repaired. State Farm for one believes that the electrical components used in the creation of hybrid cars may cause more damage in the case of a wreck.

The answer to the questions, will my hybrid help me save money on my car insurance really depends on the insurance company you choose. In order to find the best insurance rates offering discounts for hybrids is by comparing rates and remembering to ask about discounts. Most people do not know what discounts are available as they do not ask the agent and the agent will not offer these discounts unless you ask if they are any available for your situation.