On average, the purchase price of a hybrid is $2000 to $4000 higher than a standard fuel vehicle.
In terms of insurance, research shows that most hybrid owners are safe drivers and are a lower risk. The majority of consumers who are willing to pay more to own a hybrid have a different mindset than the typical driver. They are eco-friendly people, married, usually in their 40′s and 50’s and are more likely to be conscious about safety both on and off the road.
Early indications show that the majority of people who own and operate hybrid cars are the same people who qualify for low-risk insurance. Therefore, some insurance companies are offering a discount of anywhere from 5% to 15% to hybrid owners.
Some states offer a tax break of up to $5,000 for purchasing a hybrid. Also, some states allow hybrid owners to drive in the High Occupancy Vehicle lane even if there is only one passenger. Before making a decision, check to see if the city and/or state where you live offer these perks.
Remember that age may be an additional factor. Younger drivers under age 25 usually pay more for insurance. At the same time, many insurance companies offer a small discount to students with good grades.
Since hybrids have not been around that long, it is difficult to truly determine the insurance costs of owning a hybrid.
Given the continuously steady rise in gas prices, these estimates could change. Additionally, the average or typical type of hybrid drivers may change as more consumers start purchasing alternative fuel vehicles.
Overall, it is difficult to approximate the insurance cost that a given hybrid owner will pay due to the many variables of insurance pricing such as age, marital status, driving record, zip code, grades, kind of car driven, the amount of insurance coverage, etc.
In conclusion, owning a hybrid will most likely help lower your insurance premiums. Assuming that your driving record is accident free for at least 3 years, owning a hybrid will impact your insurance in a positive way.