How Hybrid Cars Are Changing Premium Structures Globally

Hybrid Car Insurance Premiums: What is Changing?

Hybrids are transforming the way you drive, and they are also redefining how insurance policies and their premiums are priced worldwide. Continue reading to learn more about hybrids and their impact on premium structures.

Its Initial Purchase Value is High

One of the primary reasons insurance premiums for hybrid cars are higher is that they are worth more. This also means that in the event of damage or loss, the insurance company covers a higher cost, increasing the premiums.

Here’s an example. The petrol variant of Honda City costs about ₹12.38 lakhs, while the hybrid costs ₹19.90 lakhs (these are Delhi ex-showroom prices). The price gap highlights how hybrid cars are more expensive than petrol models.

Involves Complex, Advanced Technology and Repair Costs

Hybrids are designed with advanced technology and parts like electric motors, sensors, and much more. Such specialised technology means higher repair or replacement costs in the event of damage.

However, as hybrids become increasingly popular, repair networks are expanding, and more parts are becoming available through garage networks. Plus, some cars also come with warranted components, which can help lower the premiums in the long run.

Specialist Services

Hybrids are gaining huge popularity; however, they are still not as common as you think. This means that in case of repair, you might need to pay for specialist services, which can increase your car insurance premiums.

Government Incentives

Government incentives, such as the “green car” program, benefit drivers with green vehicles. For instance, the government of India has announced a discount of 15% and 7.5% on base premiums of third-party liability insurance for electric and hybrid electric vehicles, respectively.

Tips to Save Money on Car Insurance Premiums

Thinking about buying a new hybrid or already own one and are worried about the high insurance costs? Here are some easy tips and tricks to help you reduce your car insurance premiums.

Check the Component Warranty

Make sure you check the warranty for different components of your hybrid car, such as the battery, electric motors, and other key components. A solid warranty reduces the risks, which in turn lowers the premium prices.

Pick a Model with Proper Support

Select models with a strong supply of their parts. With the easy availability of car components and local mechanics, the premiums may be reduced.

Drive Safe and Responsible

Keep a safe driving record and consider installing safety devices in your hybrid. This way, you earn the insurer’s trust and may receive rewards in the form of premium discounts.

Use Green Discounts

Some insurance companies offer green vehicle discounts, which are passed on to the customers. Consult your insurer about this and ensure you ask all relevant questions.

Regularly Maintain Your Hybrid

Regularly maintain your hybrid with proper and timely servicing. This way, you reduce the chances of garage visits.

Stay Updated

Keep a watchful eye on the changing tax breaks and incentives for environmentally friendly models. Reach out to check if your insurer is making the same adjustments.

Compare, Compare

Before buying car insurance for your hybrid, make sure you compare the quotes of different insurers.

Jio Insurance Broking offers you the best car insurance options from the best insurance companies all across the country.

Wrapping Up

Hybrid cars are making their way into the automobile industry all over the world. These are especially preferred in regions with solid or decent hybrid infrastructure, where individuals can leverage the warranties and have a decent service network.

As far as the insurance premiums go, more and more insurers are using telematics and AI risk scoring to predict the risks and price accordingly, which may transform the pricing structure in the future. Also note that insurance premiums are not static; given the advancements, popularity, and data shifts, the prices might change.

Before buying car insurance, make sure to ask the right questions and compare your options. Jio Insurance Broking gives you easy access to the most popular insurers. You get detailed insights on their quotes, policy features, coverage, and benefits. Compare wisely to choose a car insurance that best fits your car model and budget.