Times have changed, and you can now buy either a hybrid or conventional car. As a result, when it comes to the best car insurance, nothing is the same. Hybrid and conventional vehicles are different in many ways. This also applies to their insurance plans, premiums, benefits, and procedures.
It is essential to understand the differences that exist when insuring a hybrid car vs a conventional car. This is a move that will help you in several ways which include:
- Understanding all the details involving insurance of either of the vehicle.
- Know about the risks attached to the insurance of either of them.
- Understand the cost figures for insuring each type of car and which one to go for.
- It will also influence your decision when buying a car.
- Get to know the benefits of each type of car when it comes to insurance.
What is a Hybrid Car?
It is a type of car that uses more than one type of power source. Most of them use both an internal combustion engine and an electric motor. The internal combustion engine is used to drive an electric generator to power an electric motor.
As a result, it uses both combustion and electrical power source integrated into each other to work together.
Such cars are designed with the latest technology of electric motor use to reduce emissions from fuel consumption. As a result, the electric motor reduces the amount of time the internal combustion engine is running.
What is a Conventional Car?
This is your normal traditional type of car that uses one source of power, which is an internal combustion engine. As a result, it makes use of fuel to run the combustion engine hence generating drive power.
7 Differences of Insurance Worth Noting
#1. Conventional Premiums are Competitive
Insurance premiums for conventional cars are more competitive than those for hybrid cars. The situation is attributed to the fact that conventional cars are more in numbers than hybrid cars.
As a result, there is a majority of insurers who are more willing to cover conventional cars as compared to hybrid ones.
Due to the high demand for insurance for conventional cars, there are many players in the market, which leads to competitive premiums. You can easily move from one company to the other and land a very nice premium deal for your conventional car.
#2. Hybrid Cars are More Expensive to Insure
When you compare premiums for hybrid and conventional cars, you will find out that hybrid cars are more expensive to insure.
Here is why
Hybrid cars are generally worth more than conventional cars. They come with new technology that is not known to many people. As a result, it becomes a huge challenge to repair them in case of an accident.
In some cases, a hybrid car may need a specialist mechanic to do the repair, which will demand more resources from the insurance company. Since they are difficult to repair, in some cases, it leads to replacement.
As a result, insurance companies take it as a precaution; hence insuring the car can be more expensive than a conventional one.
On the other side, conventional cars are easy to repair. They do not have any complicated technology. As a result, it is easy to find a mechanic who can fix the car after an accident. It is also easy to get spare parts. They are hence attracting lower premiums.
#3. More Policy Options
Conventional cars have been around for a very long time. As a result, it is easy for many companies to insure them as compared to hybrid cars.
This leads to many companies’ willingness to offer more options to choose from whenever you want to insure your conventional car as compared to hybrid cars.
In some countries, you will also find out there are very few companies that are offering insurance for hybrid cars. This is because many insurance companies do not understand do not want to take so much risk on a hybrid vehicle.
#4. Claim Settlement Time
One of the things that you should expect in case you buy an insurance policy for your hybrid car is that there are high chances that your claim will take longer to be settled.
Hybrid cars are more complicated as compared to conventional ones. As a result, it will take a longer time for the insurance company to get the right mechanic to fix your car.
Spares can also be a problem. It may take some time before the right spares are acquired. As for conventional cars, it is easy to find a mechanic and spares.
#5. Often Better Opportunities
There are several countries that are working to embrace green energy technology. In case you are in such a country, and you have a hybrid vehicle, then you are lucky. In such areas, even insurance companies are more welcoming to insure hybrid cars as opposed to conventional cars.
However, the biggest challenge is that you may not be living in a county where such situations apply.
The best thing to do is a study and understand the type of country you are living in and their reaction towards hybrid cars. If they are welcoming and insurance companies are interested, then you are good to go.
Some insurance companies are even offering discounts on hybrid cars in countries where the technology is encouraged.
#6. Insurers Prefer Conventional Cars
There are many cases where insurance companies end up shying away from hybrid cars. According to statistics, hybrid cars have the latest expensive technology. However, many people do not understand enough about the technology.
As a result, there are more claims from hybrid cars. At the same time, to settle the claims turns out expensive for the insurance companies. This is one of the main reasons that some insurance companies may shy away from hybrid cars and opt to insure the conventional ones.
Hybrid cars have also been blamed for causing multiple minor accidents. Some researchers claim that hybrid cars are silent hence more likely to hit a pedestrian or a cyclist. From the insurer’s perspective, this attributes to higher risks of insuring a hybrid vehicle.
#7. Insurance Procedure
When it comes to insuring a car, an insurance company has to study everything about the vehicle before they can offer the coverage. As a result, conventional vehicles have very few details which are already known since they have been there for a long time and no new technology to be concerned about.
However, when it comes to a hybrid car, an insurance company is going to take more time to study the details before offering the cover. Many companies have to take more consideration into the technology used in the car as well as the systems.
Insurance companies will also consider the availability of spares parts and mechanics to repair certain hybrid cars before they can set premiums. This is because most of the hybrid vehicles have new and sophisticated technology and systems that can be difficult to handle.
Factors Affecting Premiums
When a company is setting insurance premiums for a car, they consider several factors.
They include the following.
- Type of car. The type of car you have will determine the premiums. Some cars will cost more, while others will cost less. Expensive cars will attract higher premiums as compared to the cheaper ones. Vehicles that are also expensive to repair will attract higher premiums.
- Age. Your age is also a key factor for insurance companies when setting premiums. Young people are considered to take more risks and are charged higher.
- Your driving record. Based on your driving record, your premiums can be adjusted. People with several accident cases and moving violations are considered a higher risk hence higher premiums charged.
- Credit history. If you have a bad credit history, then you better expect to pay more on insurance premiums. This is because insurance companies have reduced trust in you if you have a poor credit history.
Car insurance is a vital factor whenever you buy a car. It does not matter what type of car you have, but it is a must to have insurance.
As a result, it is important to know as much as possible about car insurance since it is a must-have factor for a car. Whenever you are buying a car, make sure you have details of how insurance companies work.
Whether you are going to buy a conventional or hybrid car, ensure that you understand the differences between the two when it comes to insurance.
It will enable you to easily find out which one is better to have and which one is not. It is also easy to plan yourself in advance before you take an insurance plan.