So the price of gas is making you seriously consider purchasing a hybrid car next time around. You’re not alone. The cost of gas has a lot of Canadians miffed at the pump and reconsidering their next new vehicle.
A hybrid is a vehicle powered by a combo of gasoline and electricity. The first hybrid introduced in Canada, was the Honda Insight in 2000. Since then we’ve seen the introduction of the Toyota Prius in 2001, the Honda Civic Hybrid in 2002, the Chevrolet Silverado Hybrid and the Ford Escape Hybrid in 2005, to name just a few. Although still relatively new to the Canadian market there’s been a lot of buzz about how much these vehicles can save you in gas because of their fuel efficiency. But do savings appear anywhere else, like your insurance rate?
What other costs or savings are there with a hybrid?
Sure, hybrids are marketed as an environmentally-friendly way to save you money when it comes to the cost of gas, but what about other costs? Or better yet, savings? The following is a snapshot of the costs or savings you might find when buying a hybrid.
Hybrid auto insurance
After comparing online quotes at www.kanetix.ca for the Toyota Camry Hybrid, Ford Escape Hybrid, and the Honda Civic Hybrid it appears there is no one particular trend when it comes to the insurance rates for hybrids. When compared to their gas-powered alter-egos, the cost to insure a hybrid vehicle was neither consistently higher nor lower across the country.
The good news for hybrid drivers is that some Canadian insurers offer an insurance discount for drivers of hybrids usually around 10%. The fact that this discount is available suggests insurers like the drivers of hybrids as a group and believe they are low-risk.
Ticket price
While fuel efficiency is certainly a bonus in your pocketbook, it typically comes at the expense of a slightly more expensive vehicle compared to the non-hybrid version.
Maintenance
There is a perception that hybrids cost more to maintain. To offset this perception—and to put their money where their mouth is so to speak—some hybrid manufactures offer warranties that extend beyond the basic coverage on their hybrids. Toyota for example, offers 160,000 km warranty coverage on their Prius and Highlander hybrid-related components. Warranty aside, it’s also been reported that a hybrid’s regular preventative maintenance costs are comparable to its gas-powered counterpart.
Government incentives
What about incentives from the Federal or Provincial governments to encourage consumers to buy green? On the provincial level, there is good news if you live in British Columbia, Manitoba, Ontario, Quebec or Prince Edward Island. These five provinces offer a tax rebate or credit (depending on the province) varying from $1,000 to $3,000.
For a list of provinces that offer a rebate, visit:
Plus, in March 2007 the federal government introduced a ‘Vehicle Efficiency Incentive’ that will offer Canadians a rebate of up to $2,000 for the purchase of an eligible new fuel-efficient vehicle. (Update: The ecoAUTO rebate program is no longer available as of December 31st, 2008.)
Looking out for future trends
While hybrids are still in their early days, interest in these vehicles continues to grow. Auto makers are coming out with more hybrids every year and Canadian consumers are buying them. The www.kanetix.ca snapshot of hybrid vehicles show there is also activity afoot among insurers. Recent announcements about insurance discounts for hybrid drivers suggests you’ll likely see more activity, and hopefully more savings, as insurers and the public learn more about hybrids. We’ll keep you posted as changes happen.
Buying a hybrid? Compare quotes
The only way to know if you can save money on your insurance by buying a hybrid car is to compare quotes online at www.kanetix.ca. Compare quotes online today to see if you could be saving money on your auto insurance premiums with a fuel-efficient vehicle.
Looking for more on hybrid car trends, fuel efficiency, and auto insurance rates?
Over the years, Kanetix® has compiled a series of articles and news bytes that you might find of interest:
Top 10 most popular hybrids quoted online, in Winter/Spring 2006, for auto insurance through Kanetix.
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