Green Vehicle Car Insurance Discount

Some companies charge more to insure a green vehicle. However, there are a few national insurance companies that do offer discounts on environmentally friendly vehicles, and there are plenty of other financial benefits to driving green.

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UPDATED: Jun 13, 2022

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Written By: Chris TepedinoReviewed By: Laura WalkerUPDATED: Jun 13, 2022Fact Checked

The Rundown

  • Green vehicle insurance discounts are available from a few select companies
  • In most cases, however, it will cost more to insure an electric or hybrid car
  • The savings at the gas pump should help make up for any increase in car insurance premiums

When you decide to buy a hybrid or electric car, you are probably looking forward to saving a significant amount of money on gasoline. On the flip side, however, you might be wondering “do hybrids cost more to insure?” In addition, you might wonder if your new “green” vehicle will qualify you for a discount on your car insurance.

Have a quick read through the following points relating to green vehicle insurance discounts, as well as additional money-saving tips about green cars.

Can I get a green vehicle car insurance discount?

While electric and hybrid car insurance discounts are available from select companies, it is generally not that common. Farmers and Travelers both offer green vehicle car insurance discounts to their customers, and some local providers may do the same. 

Even if you are not covered by one of these companies, it is still worthwhile to give them a call and inquire about what types of savings may apply to you. If you learn that you cannot save anything through your current policy, you could then arrange to get free Farmers, Travelers, and TD Insurance quotes. It never hurts to get free auto insurance quotes from other companies to see if you could be saving more money.

What defines a vehicle as green?

If you own a hybrid car that can switch between electric and gasoline, a 100% electric vehicle, or one that runs on hydrogen or even solar power, you are officially the owner of a “green” vehicle. While fuel economy in strictly gasoline cars has become a lot better over the years, hybrids and other green cars are still more efficient and environmentally friendly so you can lower your car’s carbon footprint

Do hybrids cost more to insure?

Unfortunately, many car insurance companies actually charge higher rates for green vehicles. This is because of the following: Hybrid and electric cars are more specialized, so they tend to cost more to repair than gas-powered vehicles. Not as many mechanics are trained in repairing green vehicles, so the parts and the labor are more expensive than a traditional car. Also, hybrid and electric vehicles typically have a higher price tag than gas-powered cars. Since car insurance rates are calculated based on the value of the vehicle, this will typically result in higher rates for a green car.

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You Can Still Save Money With Your Green Vehicle

While you might not save money on your car insurance when purchasing an environmentally friendly vehicle, there are still definite financial benefits to owning an electric or hybrid car. For instance, the cost to charge up an electric vehicle is much lower than filling your car with gasoline. Hybrid vehicles will still use less fuel than gas-powered vehicles, which will add up to some significant savings. 

Depending on where you live and what you drive, your electric vehicle may qualify you for a tax credit of up to $7,500; call a local accountant or check online to see if this is the case for your area. Also, because green car insurance costs vary so much from one insurer to another, it is worth the time to shop around and compare car insurance quotes and rates from a number of top insurance companies. 

You may find a company that will give you a discount for your electric or hybrid car, or at the very least, you may get a lower quote than you are currently paying for your policy.

A Final Word on Green Vehicle Car Insurance Discounts

Whether or not you qualify for a car insurance discount for your green car, owning this kind of vehicle does have its perks. Your electric or hybrid car will save you significantly at the gas pumps, and as you drive around from Point A to Point B, you can be secure in the knowledge that you are doing your part towards a cleaner environment.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about insurance. Our goal is to be an objective, third-party resource for everything insurance related. We update our site regularly, and all content is reviewed by insurance experts.

Chris Tepedino is a feature writer that has written extensively about home, life, and car insurance for numerous websites. He has a college degree in communication from the University of Tennessee and has experience reporting, researching investigative pieces, and crafting detailed, data-driven features. His works have been featured on CB Blog Nation, Flow Words, Healing Law, WIBW Kansas, and C...

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Written by Chris Tepedino
Insurance Feature Writer Chris Tepedino

Laura Walker graduated college with a BS in Criminal Justice with a minor in Political Science. She married her husband and began working in the family insurance business in 2005. She became a licensed agent and wrote P&C business focusing on personal lines insurance for 10 years. Laura serviced existing business and wrote new business. She now uses her insurance background to help educate...

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Reviewed by Laura Walker
Former Licensed Agent Laura Walker

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