Hybrid cars may have high auto insurance premiums this year

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19As advertised to consumers, hybrid cars are less expensive because of its energy efficient quality. It uses less gas, is eco-friendly, and can have discounts in an auto insurance policy. However, recent studies have been conducted showing that despite its good quality, it is actually a more expensive liability than a regular gas-fueled car and the attitude of their drivers have something to do with it. Mitchell International Inc., an information provider for automotive industry, has conducted a research about how the cost of repair of hybrid cars and the change in their owner profile change auto insurance premiums.

When hybrid cars went out in the market a few years ago, Greg Horn, vice president to Mitchell International Inc., said that their owners tend to be more responsible because of the reputation of the car. It aims to reduce pollution and be more energy efficient and that was also the attitude of their owners back then. They drive safely and carefully.

Now, it seems that times have changed and the position of its owners may have changed as well. Their investigation showed that their drivers seem to receive increased number of driving and traffic violations like a driver of a regular car would. Also, owners of hybrid cars are more likely living in urban locations where the rate of car accidents is higher than rural areas. Because of this, car insurance premiums for hybrid cars have the possibility of rising according to auto insurance companies. If hybrid cars and regular cars have the same level of risk then they should be at the same premium rate. Car insurance companies monitor their policy holders as well as the cars that they drive as part their business strategies. With these studies, they are able to see whether to increase rates or not or to provide discounts or not.

Another factor that affected the probable increase of auto insurance premiums would be the cost of repair when hybrid cars are engaged in a car accident. Mitchell said that hybrid cars rarely use alternative parts. They usually prefer the original parts or parts from the same manufacturer to ensure its quality and its performance. The difference between hybrid cars and the regular gas-fueled cars in auto insurance claims is estimated to be up to $200 Greg Horn said.

Because there is no significant difference in insuring a hybrid from insuring a regular gas-fueled similar vehicle, auto insurance companies would prefer not to keep the discounts just because it has its energy efficient and eco-friendly quality. And because it can be equally risky on the road, car insurance companies, keeping business as they are, they would remove the privileges attached to the auto insurance policy of a hybrid car.