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Environmentally Friendly Cars – Hybrid Car Insurance

Article: Environmentally Friendly Cars – Hybrid Car Insurance

So you have been thinking of buying a Hybrid Car lately, with all those celebrities like Tom Hanks, Arnold Schwarzenegger, and many other jumping on to the green bandwagon. And there is absolutely no reason why you should not, what with the government giving away green tax incentives of about $7,500 and the potential long term savings on gasoline. And of course you would really like to leave behind a green legacy for your children for generations to come. Fuel efficiency is of course, the order of the day, as our household budgets shrink in tandem with our ailing economic situation. But before you too jump onto the bandwagon of owning environmentally friendly cars, there are a few issues you need to find out, like the cost of maintenance, hybrid car insurance, repairs, hybrid car accessories etc. This is especially true in terms of hybrid car insurance.

As in all advanced and new technology in the market, the debut of commercially manufactured hybrid cars comes with a high repair costs as it would require an almost entirely new set of technical skills to manage the repair works of hybrid cars. These skilled manpower would in turn cost money to groom and grow.

Take for instance, compare the cost of repair for a Hybrid sedan and a gasoline guzzling one when they both need similar types of repair. The hybrid car will still cost more due to the fact that there is only one engine to deal with in the gasoline sedan, while the hybrid car has an electric motor as well as a gasoline powered one. The hybrid car entails more complex and components requiring additional work to complete the repair.

The repair and maintenance costs are directly correlated to the numbers of hybrid cars sold in the market, as hybrid car insurance is priced based upon the normalcy of the claiming behavior of hybrid car owners. The claiming experiences of the insurance companies would help determine the price of hybrid car insurance premiums. The lesser the claims for repairs the lower will be the premiums payable. Hence it is largely dependant on the good driving habits of the hybrid car owners.

Currently, with about a million hybrid car insurance sold, the statistical accuracy correlating to predictable claims may not yet be conclusive, unlike the traditional car or auto insurance in the market. Insurance companies will being closely observing accident rates for hybrid cars as compared to conventional cars to help them derive more statistical relevance in hybrid car insurance claims.

But that said, the green tax incentives and long term gasoline savings probably far outweighs the cost of hybrid car insurance premiums. And not to forget, you get to pay at a discount in some states for maintaining an accident-free record over a period of time too.

Source: cngcar.org

Website collected information from http://www.carcrash.org

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