Is car insurance cheaper for hybrid cars?

There are no special hybrid car insurance policies, although the higher price of hybrids may result in increased rates. To find the lowest hybrid car insurance rates, use our quote comparison tool.

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A former insurance producer, Laura understands that education is key when it comes to buying insurance. She has happily dedicated many hours to helping her clients understand how the insurance marketplace works so they can find the best car, home, and life insurance products for their needs.

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Joel Ohman is the CEO of a private equity backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Jo...

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Reviewed by Joel Ohman
Founder & CFP®

UPDATED: Jan 24, 2021

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Here's what you need to know...

  • You do not need special insurance coverage for your hybrid car
  • Because your hybrid most likely costs more, your insurance premiums will be higher
  • The same discounts that apply to regular cars are applicable to your hybrid as well
  • Currently, there are no companies that specialize in hybrid car insurance

If you purchase a hybrid car, you are probably looking forward to a reduction in your overall costs for running the vehicle.

Unfortunately, in the case of car insurance, you can expect to pay more for your rates. This is something that you need to consider when making your budget.

Enter your zip code now for FREE car insurance quotes on your hybrid car from multiple companies!

The thing about hybrid cars in the U.S. is that they are more expensive than comparable non-hybrid cars.

Since car insurance companies base part of your insurance rates on the value of your vehicle, if the value is higher, then your insurance is going to cost more.

While you aren’t going to pay hundreds of dollars more for your car insurance if you have a hybrid, you can still expect to pay more.

If you purchase a $30,000 car, and many hybrids fall into that price range, then you are going to pay 25% to 40% more for your insurance than someone who has a $15,000 car.

What’s more, the insurance company will also have to take into account how much it will cost to repair your vehicle if you have an accident.

If your hybrid car is part electric, then there are specialty parts to consider as well.

How do hybrid cars run?


Hybrid vehicles work by combining a motor that is electric with a gas-powered engine.

Hybrid vehicles also use a type of energy known as kinetic energy to help with functions such as recharging the battery.

Unlike some of the newer vehicles on the market, hybrid cars still take regular gas. Many models of hybrid vehicles can get up to 50 miles per gallon.

Today, there are hybrid vehicles that include a plug-in component. These vehicles run just on electric for a certain amount of time and then switch over to the regular gas engine.

An example of this type of car is the Chevrolet Volt. The Volt can get up to about 40 miles on the electric portion of the car and almost another 400 miles with the gas portion.

This is beneficial for drivers who only drive a limited amount of miles close to home and have the ability to charge their vehicle overnight.

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Is there a hybrid vehicle that is electric only?

The final type of hybrid car is the one that is completely electric. Known as Electric Vehicles (EVs), these vehicles run only on electric packs that are completely rechargeable.

Besides not needing any type of fuel, electric vehicles have very limited maintenance requirements and don’t need things like oil changes.

However, keep in mind that electric vehicles only have a total driving range of around 100 miles, and there are limited charging stations all over the country. So, if you are planning on driving an electric vehicle, make sure you stay close to home.

Are there companies that specialize in hybrid car insurance?

At this time, there aren’t any insurance companies that specialize in hybrid car insurance. In fact, any insurance company will insure your hybrid car.

There may come a time that insurance companies will offer a discount for insuring hybrid cars. Some states have programs in place that pay insurance companies a small stipend if they insure a certain amount of hybrid vehicles.

As more hybrid vehicles are sold, it will benefit the car insurance companies to lower the rates by that stipend amount, if it’s offered.

Do I need any special additional insurance for my hybrid car?

The good news is that you don’t need anything special to insure your hybrid car. The insurance that you need for your hybrid is the same insurance that you have to purchase for any other kind of vehicle.

You will probably want to purchase all of the extra insurance options for your hybrid car, however, because of the expense of the vehicle itself.

You will want to consider both comprehensive and collision insurance for your hybrid car.

Of course, if you are leasing the car or you finance the vehicle, then your insurance company will require you to purchase both collision and comprehensive insurance.

This is the same when you lease or finance a traditional vehicle.

Considering the cost of buying a hybrid car, if you do finance your car, you may also want to consider gap insurance as well. Gap insurance pays the difference between the value of your vehicle and what you owe on the vehicle.

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How can I get lower rates for my hybrid car insurance?

The good news is that you can get the same kinds of discounts for your hybrid car insurance that you can for a non-hybrid car.

In addition, the first year you own your hybrid you can get a tax credit for your purchase, which can negate some of the insurance cost.

Here are a few of the discounts you can take advantage of:

  • Safe driver discount
  • Good credit discount
  • Discount for defensive driving course certificate
  • Discount for extra safety features
  • Discount for anti-theft features
  • Higher deductible discount
  • Multiple policies discount

One of the best ways to get a lower premium for your hybrid car is to shop around for your insurance.

This seems to be a common mistake that people make, even with the access that is available via the Internet; people go with who they know instead of shopping around.

There are many instances where people save a significant amount of money on their car insurance by switching to a new company.

However, you need to do more than check out Geico or Progressive like their commercials claim. Instead, use a free quote tool like the one we offer here and compare the rates between several companies.

You can get FREE insurance quotes from multiple providers by entering your zip code below!



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