Deciding to drive a hybrid or eco-friendly car can be a tough decision. While it can seem more costly, it can also save you a significant amount of money in the long run. While, it’s more money on upfront costs, and repairs–when it comes to tax credits, gas and lifespan, you can save money when choosing an eco-friendly car.
Did you know you could even save on your auto insurance? The actual increase (or decrease) will depend on the car you’re driving now, and other factors such as your driving history and coverage selected.
The reason for this is that hybrid drivers tend to be more responsible, more educated, have stable jobs, and are less likely to be involved in accidents (because they drive less). In addition, most hybrid owners tend to be men and women in their 40s and 50s, which happens to be another “plus” in the eyes of insurance companies. Drivers like these end up in the “preferred” category, which receives the best insurance rates.
These following companies offer discounts:
You’re probably thinking that this discount doesn’t seem significant. However, realize that the average insurance rate for families in America is over $400 per month (close to $5,000 per year). Which insurance rates increasing each year, that 10% discount from Travelers, for example, could be significant. If your family hovers around the average insurance rate in the USA, you could be looking at $400 or more in savings per year.
It’s important to realize that these cars are much more expensive to purchase than an average gasoline powered vehicle. They also cost more to repair due to their technology used. Yes, you may save 5%-10% on your insurance rate because it’s a hybrid, but your actual base insurance might be high. Expensive cars are usually more expensive to insure than inexpensive cars.
Keep in mind, just because you’re driving an eco-friendly car, it doesn’t mean you will automatically be paying less. If you’re interested in serious savings on your auto insurance, there are more factors that come into play such as:
Usually people who drive eco-friendly cars aren’t driving them for the insurance discount – they are driving them because they are environmentally conscious and are looking to help keep Mother Earth safe and healthy. However, one of the perks of driving them, is an auto discount. Safe driving record, however, is going to play the biggest role in your insurance rates, no matter what car you drive.
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