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Are Hybrids More Expensive to Insure Than Other Cars?

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by Nick Versaw Updated April 22nd, 2022

Are hybrids more expensive to insure: happy man driving a car

Figuring out the true cost of ownership of a hybrid car can be tricky. On the one hand, you can expect to pay less in repair costs and fuel costs if you drive a hybrid vehicle compared to a traditional car — but you may end up paying higher car insurance rates. That’s because hybrid vehicles tend to have a higher sticker price and use advanced hybrid technology that can be expensive to repair or replace.

Still, the question “Are hybrids more expensive to insure?” doesn’t have a simple yes or no answer. That depends on factors like your age, the state you live in, and your driving history, all of which can be used to determine your auto insurance premiums.

Here’s everything you need to know about whether or not hybrids are more expensive to insure than other cars, and what you can do to find cheap car insurance.

Are Hybrids More Expensive to Insure Than Other Cars?

Hybrid cars have a lot going for them: They have lower emissions than traditional cars, but more flexibility than fully electric vehicles because they have both an electric motor and an internal combustion engine. If you get a plug-in hybrid, you can even charge it  directly from a wall outlet or a home charging station.

But are hybrids more expensive to insure than other types of cars? Let’s take a look at car insurance for hybrid cars, and what hybrid drivers can do to find the best rates and car insurance discounts.

Hybrids vs. Electric Cars

According to the Insurance Information Institute, the average car insurance policy in the U.S. costs $1,056.55 per year. Electric cars and hybrids don’t require a special type of policy, but you can expect insurance companies to charge more to insure them.

Why is that? Mostly, because the cars themselves are more expensive. Car insurance companies charge more to insure expensive cars — whether it’s a conventional sports car or an electric car like a Tesla — because they cost more to repair or replace.

Are hybrids more expensive to insure than electric cars? That depends on the make and model. While expensive parts tend to raise auto insurance rates, the advanced safety features that many electric cars come with could lower them. Auto insurance companies take all of these factors into account when offering you a quote.

You may want to compare car insurance quotes before choosing between an electric car or a hybrid. Just enter your ZIP code here to find the best rates for you:


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Hybrids vs. Traditional Cars

When it comes to hybrids vs. gas cars, the answer is a little more clear-cut. Yes, hybrids are more expensive to insure than traditional cars, but a hybrid model could cost less to insure than a gas-powered model in some circumstances.

If you buy a used hybrid car, for example, you may end up paying less to insure it than you would for a newer gas model. You can use our handy comparison tool here to look for great deals on used hybrids near you:


Find Used Hybrid Cars Near You


Within the hybrid category, some models have lower insurance prices than others. The Honda Insight and the Honda Civic Hybrid are less expensive to insure than the Toyota Prius, but prices may still vary depending on other factors like your driving record.

BMW EVs and hybrids are more expensive to insure because of their high sticker price and luxury components, making them more susceptible to theft.

Other Factors That Affect Insurance Costs

Happy woman driving a car

The impact that driving a hybrid has on your insurance premiums may actually be less than the impact of other factors, such as your age and your driving record. That’s why it’s important to shop around and get multiple quotes before buying car insurance.

Let’s take a look at some of the factors that determine your insurance costs:

Your Age and Driving History

Your age and experience behind the wheel is one of the biggest factors that determines the cost of car insurance. Teens and new drivers might be charged significantly more to drive the same car as an experienced adult driver.

Likewise, adults with multiple accidents or speeding tickets on their record may see their auto insurance rates go up.

You may be able to reverse this increase by taking a defensive driving course or signing up for usage-based insurance. These types of policies typically require you to install a GPS device in your car which tracks your speed and driving habits.

Where You Live

Your residential address can also have a big impact on the cost of car insurance. The III reports that the cost of car insurance in Louisiana is more than twice as high as the cost of car insurance in Maine — $1,557.22 vs. $696.37. Moving to a city can also raise your insurance premiums due to a higher risk of accidents and car theft.

While we can’t all pick up and move to a new state just to pay less for car insurance, it’s worth keeping in mind if you happen to be relocating anyway for work or college. Some insurance companies offer “distant student discounts” for college students who leave their car at home or only drive their parents’ car occasionally when they visit.

Whether You Buy or Lease

A third factor that can determine the cost of insurance for hybrid vehicles is whether you buy the car outright, take out a loan, or lease it. If you’re leasing or financing a new car, you may be required to maintain higher levels of insurance coverage than you would otherwise, which can result in higher monthly rates.

With a used car, you may be able to lower your insurance costs by dropping collision or comprehensive coverage, especially if the value of your vehicle is less than what you’re paying each year in premiums.

Your Make and Model

Finally, although hybrids cost more to insure than traditional cars, the kind of fuel your car uses may not be as big of a factor as the make and model of the vehicle.

Luxury cars and sports cars are some of the most expensive models to insure, whether or not they’re hybrids. SUVs tend to be more expensive as well, meaning it will cost you more to insure a Toyota Highlander Hybrid than a hybrid hatchback or sedan.

Other factors such as your credit score, marital status, and gaps in insurance coverage can also have an impact on the cost of insuring your hybrid.

Find the Best Used Hybrids Near You

Happy woman inside a car

Buying a hybrid car can have an impact on your car insurance costs, but it shouldn’t be the only factor you consider when deciding which type of car to drive. If you’re set on driving a hybrid, then you can always look for models with lower insurance costs or choose a plan with a higher deductible.

And if you’re considered a new or high-risk driver, then you may face higher insurance costs no matter what kind of car you drive. You can always shop around or ask your insurance provider if there are any discounts that can lower your premium.

Browse our electric car guides to learn more about your options, then enter your ZIP code here to find the best deals on used hybrids near you:


Find the Best Used Hybrids Near You

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