How Hybrid Cars Qualify for Auto Insurance Discounts
Insurance carriers and the IRS offer incentives to buy and drive a hybrid
DENVER, September 1, 2008 — Although the sales of hybrid cars has continued to rise steadily over the past few years, this summer’s $4 a gallon gas prices and expectation of $6 a gallon has increased the popularity of alternative fuel vehicles. In addition to saving money on gas, the added benefit to owning a hybrid car is saving on your auto insurance.
Hybrid Car Owners Save Money
A number of auto insurance carriers are offering up to a 10% discount on hybrid car insurance premiums, which puts more money in your pocket every year, whether you own or lease your more fuel-efficient vehicle.
What people may not know is that the government also wants to increase hybrid car sales. The IRS has been offering tax credits to hybrid car owners that range from a few hundred dollars to over two thousand dollars, depending on the make and model.
Although some hybrid tax credits are being reduced on certain foreign made hybrid cars, as more American made models are introduced into the market, the IRS has responded with new tax credits for the Mercury Mariner 4WD Hybrid, GMC Sierra hybrid trucks and Chevrolet Silverado hybrids, along with the Ford Escape Hybrid 2WD and 4WD models, the Saturn Vue Green Line and the Aura Hybrid.
Progress in Hybrid Cars Brings Down Price
Evolution in hybrid technologies has not only increased efficiency, its helping to reduce production costs, making the hybrid cars more affordable. For example, Honda announced that the hybrid powertrain in their new Honda Civic Hybrid 2009 will cost half of the original model, which will bring down the MSRP as they go after the Toyota Prius marketshare.
As more auto makers introduce new hybrid models, competition will increase and car buyers will have more options for retaining their current lifestyle while driving a more fuel-efficient vehicle.
See how much you could save today on your car insurance. Get your free auto insurance quotes today!