Choosing an electric vehicle or a hybrid can cost less overall in the long run, but the initial cost of purchase – possibly combined with a higher-than-expected insurance premium – can make affordability seem like a far-away dream. Before you make the switch, reach out to your broker to get a handle on costs and to ask if there are any discounts available. Many times, insurers offer discounts for combining multiple policies or for making automatic payments.

If you‘ve been looking at that shiny new hybrid or electric vehicle, it‘s time to talk about insurance. In fact, no matter which type of vehicle you‘re considering, it‘s worth a chat with your broker to understand the insurance costs. You might be surprised at the difference in the cost of insuring one vehicle over another vehicle – even of the same size and type.
Sometimes – but not all the time – hybrids or electric cars can cost more to insure than their gas-powered brethren. To understand what drives premiums higher, it‘s important to understand how vehicle features can affect costs.

Replacement cost
At the heart of the matter are repair and replacement costs. Electric cars and hybrids usually cost more than an equivalent sized gas-powered car. For a newer car, it‘s likely that you‘re carrying collision and comprehensive coverage. Both coverages take the replacement cost of the vehicle as well as the repair costs for the vehicle into account when determining a premium. We tend to expect higher premiums for sports cars or for high-end cars and while electrics and hybrids might not always be fast or flashy, they tend to cost more than average to replace – and that‘s a big part of what drives the insurance costs.

Safety features and performance
From a safety standpoint, insurers also consider safety features of vehicles, including smart car technology, as well as passenger safety, stopping distances, etc. As you might expect, these factors vary from one vehicle to the next, and whether your vehicle is electric, gas-powered, or a hybrid likely has little bearing. However, many electric vehicles or hybrids are heavier than their gasoline counterparts, which can affect stopping distances.