Can You Save on Insurance by Driving Hybrid Vehicle?
15
February
2011

A hybrid car is undoubtedly environmentally friendly, low on fuel consumption, and gives us the opportunity to save money in the long run. However, when it comes to insuring a hybrid car many people are of the opinion that insurance rates are very high. Agreed, insurance for hybrid cars may be a more at present but there are plenty of benefits and way to keep insurance costs to the minimum. Once you learn about ways to reduce monthly insurance bills, you will be able to save a significant amount.

To begin with, some car insurance providers do offer several benefits to those who drive eco-friendly cars. Cheaper premiums are offered to hybrid car drivers who are statistically considered safer, leading to a reduction in insurance costs. Environmental concerns cause these drivers to clock less miles on an average every year. As far as insurance providers are concerned, hybrid car owners are low risk drivers since they most likely to drive cautiously. Moreover, these drivers are in the married and middle aged group, which is another reason to attract lower premiums. Even with a reduction of 10% on insurance bills, hybrid car owners end up saving a significant amount when combined with lesser fuel consumption.

As automobile manufacturers continue to bring out cheaper hybrid based vehicles, insurance prices are set to drop even further. In addition, there is a tax incentive for hybrid car owners, which results in further savings which can be had as early as in the first year of ownership. Some states also have extra credits for cars using alternative energy sources, with tax credits as much as $7,000 and more. With an increasing number of hybrid cars on the road, insurance companies automatically tend to lower prices. The bottom line is that it makes economical sense to own a hybrid car when you combine all various benefits and incentives available.

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