Auto Insurance

Auto Insurance

Posted by Safe In4 Hub

Will I save money on my auto insurance by purchasing a hybrid vehicle?

Insurers such as St. Paul Travelers and other insurers offer discounts on auto insurance premiums for hybrid vehicle owners.

Yet other insurers such as State Farm refuse in offering discounts to hybrid owners since they claim repair costs of hybrids are simply too high and are concerned over risks the electric components provide that may pose in the event of an accident.

There were less than 10,000 hybrid vehicles sold in the year of 2000 while 212,000 hybrids were sold in 2005. Hybrids still increase in sale estimating by 268% to 780,000 among 52 models in 2012. After Hurricane Katrina, the growth in the hybrid market has increased. The car's tank fills fast and therefore can save consumers money.

Hybrid owners benefit from a tax credit ranging from $250 to $3,150. The discount needs to be approved by states since the insurance is regulated on a state level.

There are many auto insurers that disagree that hybrids deserve an insurance discount. A State Farm spokesman confirms his unwillingness to follow the idea on hybrids insurance discount. According to this State Farm spokesman, hybrid owners get into as many accidents as other drivers.  He also considers the price to fix a damaged hybrid simply too high.

The cost for repair can be greater depending on where vehicles get hit. State Farm does not believe the risk is workable.

There are experts who claim that the risks the electric components might pose in the event of an accident will cost a large sum of money. Other experts claim that hybrids pose no more danger than gasoline-powered vehicles and the electrical concerns are unfounded.

So far, many hybrids offer the best in newer safety technologies: stability control, antilock brakes and side air bags. It is however, laden with similar loads of gasoline, antifreeze, and other potentially dangerous fluids, hybrids don't pose any less danger, either.

The information on the 2006 models is not currently available; the exact credit each hybrid model car will receive is not known.

The demographics of hybrid buyers are very attractive. Before the tax credit, the average buyer needs to pay more up front and then drive the hybrid for five years to get the money back in savings on gasoline.

According to the research and the consulting firm of J.D. Power & Associates, new hybrids are expected to make up to 3.5% of car sales by 2012. The firm also said that manufactures will have to reduce the cost of hybrids to attract buyers who aren't motivated by concerns about the environment or trimming fuel consumption.

Hybrid car enthusiasts see nothing except strong growth ahead for their favorite type of vehicle. Every hybrid that's produced is sold quickly. Hybrid technology works and wishes to share their knowledge with others.

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