Can You Get an Insurance Discount for Owning a Hybrid Car?
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Written byMandy Sleight
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Mandy Sleight has over 15 years of insurance knowledge and expertise in auto, home, life, health, pet, supplemental benefits, and other insurance products. She’s a sought-after insurance expert, appearing in Bankrate.com, Moneygeek.com, U.S. News & World Report, Reviews.com, CNET, and other publications, and she's been writing for Compare.com since 2023.
Mandy uses her background and experience working for well-known insurance companies like State Farm and Nationwide Insurance to create engaging and easy-to-understand content that helps readers make smarter insurance choices that have a positive effect on their budgets and finances.
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Edited byNick Versaw
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Nick Versaw leads Compare.com's editorial department, where he and his team specialize in crafting helpful, easy-to-understand content about car insurance and other related topics. With nearly a decade of experience writing and editing insurance and personal finance articles, his work has helped readers discover substantial savings on necessary expenses, including insurance, transportation, health care, and more. As an award-winning writer, Nick has seen his work published in countless renowned publications, such as the Washington Post, Los Angeles Times, and U.S. News & World Report. He graduated with Latin honors from Virginia Commonwealth University, where he earned his Bachelor's Degree in Digital Journalism.
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Due to higher repair costs and more advanced safety features, hybrid vehicles typically cost more to insure than gas-powered cars. But some insurance companies offer discounts for hybrid and electric vehicles to help offset the higher cost.
You can generally save between 5% and 10% with a hybrid vehicle discount with companies like Farmers, Liberty Mutual, and Travelers, but specific discount amounts can vary by insurer and state.
Let’s take a look at how to get a green vehicle discount, which insurers offer it, and why hybrid drivers usually pay more for auto insurance.
Do Insurance Companies Give Discounts for Hybrid Cars?
A few insurance companies give discounts for hybrid and electric cars, though savings vary by state and insurance company. Discount savings range from 5% to 10%, and Arbella Insurance offers the most savings, with a 10% energy-saving vehicle discount, according to our research.
It’s worth noting that this discount may have different names depending on the insurer. For instance, Farmers calls it an alternative fuel discount, while Lemonade calls it a hybrid/EV discount. The Hartford offers the vehicle fuel type discount.
How to Get a Hybrid Car Insurance Discount
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The Honda Insight and Toyota Prius were the first mass-produced hybrid vehicles in the United States. Green cars have only increased in popularity since their introduction in the late 1990s. Hybrid and electric cars made up over 16% of light-duty vehicle sales in 2023, with crossovers being the most popular, according to the Energy Information Administration (EIA).
If you own an electric or hybrid vehicle, you can get the green energy discount if your insurance company offers it. The companies we found offer discounts for both vehicle types, but Mercury gives this discount only to electric vehicle owners.
The discount should automatically lower your auto insurance rates when you add a qualifying hybrid or electric vehicle to your insurance policy. If it doesn’t, reach out to your insurance agent or company to get the savings.
Where to Get a Hybrid Car Insurance Discount
The hybrid car insurance discount is a rare savings opportunity that only a few insurers offer. But as hybrid and electric car ownership continues to gain popularity, green vehicle discounts may become more common.
These seven companies offer a discount to hybrid car and EV owners, according to on our research.
Company  | Advertised Discount |
|---|---|
| Arbella | Up to 10% |
| Farmers | 5% |
| Travelers | Up to 5% |
| Mercury | Varies |
| Lemonade | Varies |
| Liberty Mutual | Varies |
| The Hartford | Varies |
Disclaimer: Table data sourced from real-time quotes from Compare.com's 50-plus partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.
Next, we’ll explore a few of these companies in more detail.
The Best Hybrid Car Insurance Companies
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The best car insurance company can differ for everyone. Rates can vary widely by company because of factors like your age, driving record, ZIP code, type of hybrid, and the insurance coverage you choose.
It’s a good idea to compare auto insurance quotes regularly to see which insurer offers the best price for a hybrid insurance policy. The following insurers may be a good start.
Arbella Insurance
Average discount amount: Up to 10%
Compare.com Rating: Not rated
Arbella offers customizable coverage, including a disappearing deductible, gap insurance, pet protection, and new-car replacement coverage. You can get additional discounts as a new customer if your hybrid has an anti-theft device, you pay your policy in full, you take a driver training course, or you have a full-time student with good grades on your policy.
Lemonade
Average discount amount: Varies
Compare.com Rating: 3.4 out of 5
Lemonade’s hybrid car insurance policies offer special coverage for your vehicle’s portable charger and home charging station. You also get free emergency crash assistance through the mobile app and roadside assistance service, which provides a tow to the nearest charging station or a charging truck to your location if you run out of juice on the road.
Travelers
Average discount amount: Up to 5%
Compare.com Rating: 4.57 out of 5
Travelers’ discounts include homeownership, multi-policy, loyalty, new car, safe driver, affiliation, hybrid, and good payer savings. You can also tailor your policy with coverage options like rental car coverage, accident forgiveness, gap insurance, rideshare insurance, and new-car replacement coverage.
Other Ways Owning a Hybrid Car Affects Insurance Rates
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Hybrid cars are more expensive to insure than vehicles with an internal combustion engine, despite their better fuel economy and lower carbon footprint. A variety of factors go into the cost of hybrid auto insurance, including:
Purchase price: The more expensive a vehicle’s purchase price, the higher your insurance costs will be. Hybrid models usually cost more because they have expensive advanced technology, batteries, and electric motors.
Repair costs: Labor and replacement parts also affect car insurance rates. Hybrid cars typically have fewer specialized repair shops, and only some mechanics can work on them, so you’ll pay higher labor costs. Parts are also generally more expensive.
Safety features: Hybrids have more advanced safety features. Unlike the other factors on this list, these features help you get lower rates because they reduce your risk of theft and accidents.
Other Common Car Insurance Discounts
Though hybrid-car drivers usually pay more for insurance coverage, applying discounts to your policy can help offset higher premiums. Here are some common auto insurance discounts you may qualify for:
Multi-policy: Bundle at least two insurance products, like car with home, renters, or life insurance, and get the multi-policy discount.
Good driver: Insurers reward a clean driving record with a safe driver discount.
Paperless: Make an even lower environmental impact by going paperless to qualify for the paperless discount.
New customer: Switch insurers to get an additional discount for being a new customer.
Early shopper: Get a car insurance quote before your current policy expires to get this discount.
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Hybrid Car Insurance Discount FAQs
Hybrid car insurance can be expensive, but the right information can help you find the best deal on insurance coverage. We answered the most common question about insuring hybrids to help you choose.
No. Car insurance for electric and hybrid cars is, on average, 8% more expensive than for gas-powered vehicles, according to our research. The average full-coverage policy for gas-powered cars costs $210 per month, while hybrid car insurance premiums average $227 per month.
It depends. Car insurance may cover hybrid batteries if damaged in an accident, fire, or other qualifying claim. But if the batteries need to be replaced due to normal wear and tear, your auto insurance probably won’t cover it.
It depends. Some hybrid vehicles have a faster payback period — the time it takes for your fuel savings to make up the price difference — than others when comparing fuel prices and mileage. For example, a new Lexus hybrid has a payback period of seven or eight months. But one model of the 2024 Ford Escape hybrid has an 8.5-year payback period, according to Fueleconomy.gov.
Yes. As of this writing, you can get a federal tax credit of up to $7,500 on a fuel cell vehicle (FCV) or plug-in electric vehicle (EV). Some states also offer tax incentives for electric and hybrid cars. For example, Maryland provides a $3,000 excise tax credit for qualifying FCVs and EVs.
Sources:
Energy Information Administration, “Electric vehicles and hybrids surpass 16% of total 2023 U.S. light-duty vehicle sales,” accessed November 25, 2024.
U.S. Department of Energy, “Can a Hybrid Save Me Money?,” accessed November 25, 2024.
Internal Revenue Service, “Credits for new clean vehicles purchased in 2023 or after,” accessed November 25, 2024.
Maryland Department of the Environment, “Zero Emission Vehicles,” accessed November 25, 2024.
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Mandy SleightInsurance Writer
Mandy Sleight has over 15 years of insurance knowledge and expertise in auto, home, life, health, pet, supplemental benefits, and other insurance products. She’s a sought-after insurance expert, appearing in Bankrate.com, Moneygeek.com, U.S. News & World Report, Reviews.com, CNET, and other publications, and she's been writing for Compare.com since 2023.
Mandy uses her background and experience working for well-known insurance companies like State Farm and Nationwide Insurance to create engaging and easy-to-understand content that helps readers make smarter insurance choices that have a positive effect on their budgets and finances.
Nick Versaw leads Compare.com's editorial department, where he and his team specialize in crafting helpful, easy-to-understand content about car insurance and other related topics. With nearly a decade of experience writing and editing insurance and personal finance articles, his work has helped readers discover substantial savings on necessary expenses, including insurance, transportation, health care, and more. As an award-winning writer, Nick has seen his work published in countless renowned publications, such as the Washington Post, Los Angeles Times, and U.S. News & World Report. He graduated with Latin honors from Virginia Commonwealth University, where he earned his Bachelor's Degree in Digital Journalism.
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