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What is a hybrid car?

A hybrid car is a vehicle that uses two or more distinct power sources to move, such as gasoline engines and electric motors.

Pros and Cons of Hybrid Cars

Pros of Hybrid Cars

Cons of Hybrid Cars

Fuel-efficiency
According to the U.S. Department of Energy, a plug-in hybrid electric vehicle typically uses 30 to 60% less fuel than traditional automobiles. [1] Fewer trips to the pump can save you a significant amount of money over time, especially if you have a long commute.
Less greenhouse emissions from the vehicle
Hybrids that plugin generally produce less greenhouse emissions than gas-only vehicles. However, the type of power plant in your area is also a part of the larger greenhouse gas emissions equation. Recharging a vehicle requires electricity, and the source and cleanliness of that electricity may differ greatly. [1]
Tax breaks
Various income tax credit programs motivate drivers to buy hybrid cars. [1a] Other incentives may include vehicle registration savings, discounts on excise taxes, and extra income tax rebates.

Higher purchase cost
While you may save on gas, the initial cost of a hybrid is generally higher than a traditional gas-only vehicle. [2]
Expensive maintenance
Hybrids are generally more costly to repair because of complex dual combustion systems. Not all repair shops have the proper equipment; services may have to be performed by the manufacturer. [2]
Less power
Hybrids’ smaller internal combustion engines and lighter weight help maximize efficiency but can reduce acceleration. [2]
Gasoline is required
Depending on the type of hybrid you purchase, only some can travel long distances without refueling. [3] Some may perceive this as a disadvantage vs the alternative full-electric vehicles.

What is an electric car?

An electric vehicle has a battery as its power source, as opposed to a gas tank. And the battery powers an electric motor, not an internal combustion engine, as in a traditional vehicle.

Pros and Cons of Electric Cars

Pros of Electric Cars

Cons of Electric Cars

Energy efficient
According to the U.S. Department of Energy, electric vehicles typically convert 77% of the electrical energy from the grid to power the wheels, compared to conventional gas vehicles, which typically convert 12% to 30% of the energy stored in gasoline to power at the wheels. [4]
Less maintenance
Electric motors have fewer moving parts than internal combustion engines, so they’re often easier to maintain. They also don’t require oil, so no more oil changes. And brakes wear much slower thanks to regenerative braking systems. [5]
Direct Emissions
With no exhaust system, electric cars typically have zero emissions. Their rechargeable batteries are also almost 100% recyclable. However, recharging a plug-in electric vehicle requires electricity, and the source and cleanliness of that electricity may differ greatly. [1]

Shorter driving distance and fewer charging locations
The range of EVs has improved greatly, but it’s still generally lower than gas-powered vehicles with larger tanks. And with fewer charging locations, it can be more difficult to plan a longer trip.
Long recharge time
Recharge time and how much of a charge a vehicle needs depends on a number of variables. But several hours can be needed to fully recharge an EV compared to filling up at the gas pump in a few minutes.
Anxiety
Due to the limited range and shortage of recharging stations, you may be constantly concerned about running out of power.
Expensive battery
The cost of a typical battery replacement could reach $10,000 or more, which is on par with a gas engine in traditional cars. [6]

In choosing the right vehicle, consider budget, passenger load, and geographic location. Whatever type of car you choose, ensure you have the right car insurance to help protect yourself and your car. Have peace of mind while you’re on the road and get a free car insurance quote today.

Sources:

[1] “Plug-in Hybrids,” fueleconomy.gov/feg/phevtech.shtml (accessed Sept. 19, 2022).

[1a] “Federal Tax Credits for New All-Electric and Plug-in Hybrid Vehicles,“ fueleconomy.gov/feg/taxevb.shtml (accessed Nov. 23, 2022).

[4] “All-Electric Vehicles,” fueleconomy.gov/feg/evtech.shtml (accessed on Sept. 9, 2022).

[5] “Maintenance and Safety of Electric Vehicles,” afdc.energy.gov/vehicles/electric_maintenance.html (accessed Nov. 23, 2022).

Disclaimer:
The information included here is designed for informational purposes only. It is not legal, tax, financial, or any other advice, nor is it a substitute for such advice. The information may not apply to your specific situation. We have tried to make sure the information is accurate, but it could be outdated or even inaccurate in parts. It is the reader’s responsibility to comply with any applicable local, state, or federal regulations. Nationwide Mutual Insurance Company, its affiliates, and their employees make no warranties about the information nor guarantee of results, and they assume no liability in connection with the information provided. Nationwide and the Nationwide N and Eagle are service marks of Nationwide Mutual Insurance Company. © 2022 Nationwide and Shield Insurance Agency.

Tips to cut Car Insurance Costs

Posted on May 24, 2021January 23, 2025 by Shield Insurance Agency

15 Tips and Ideas for Cutting Car Insurance Costs

By GLENN CURTIS Updated Apr 16, 2021

Car insurance is necessary to protect you financially when behind the wheel. Whether you just have basic liability insurance or you have full auto coverage, it’s important to ensure that you’re getting the best deal possible. Wondering how to lower car insurance?

Here are 15 strategies for saving on car insurance costs.

KEY TAKEAWAYS

One of the ways to lower car insurance is through a discount bulk rate for insuring several vehicles and drivers at once.
Lower car insurance rates may also be available if you have other insurance policies with the same company.
Maintaining a safe driving record is key to getting lower car insurance rates.

How Much Does Car Insurance Cost?

Car insurance costs are different for every driver, depending on the state they live in, their choice of insurance company, and the type of coverage they have. But when trying to save money on car insurance, it helps to know what the typical driver pays.

On average, the typical person spent $1,190 on car insurance in 2018, based on the latest figures available from the National Association of Insurance Commissioners (NAIC)¹. According to the NAIC data, car insurance premiums rose 30% between 2014 and 2018, despite the number of insured vehicles only rising by 7%¹.

Data from AAA put the average cost of car insurance for new vehicles in 2020 slightly higher, at $1,202 annually². The numbers are fairly close together, suggesting that as you budget for a new car purchase you may need to include $100 or so per month for auto insurance.

NOTE
While some things that affect car insurance rates–such as your driving history–are within your control others, costs may also be affected by things like state regulations and state accident rates

How to Save on Car Insurance Costs

There are a number of strategies you may use to save on car insurance. Once you know how much is car insurance for you, you can put some or all of these tactics to work.

1. Take Advantage of Multi-Car Discounts

If you obtain a quote from an auto insurance company to insure a single vehicle, you might end up with a higher quote per vehicle than if you inquired about insuring several drivers or vehicles with that company. Insurance companies will offer what amounts to a bulk rate because they want your business. Under some circumstances, they are willing to give you a deal if it means you’ll bring in more of it.

Ask your insurance agent to see if you qualify. Generally speaking, multiple drivers must live at the same residence and be related by blood or by marriage. Two unrelated people may also be able to obtain a discount; however, they usually must jointly own the vehicle.

If one of your drivers is a teen, you can expect to pay more to insure them. However, if your child’s grades are a B average or above or if they rank in the top 20% of the class, you may be able to get a good student discount on the coverage, which generally lasts until your child turns 25. These discounts can range from as little as 1% to as much as 39%, so be sure to show proof to your insurance agent that your teen is a good student.

Incidentally, some companies may also provide an auto insurance discount if you maintain other policies with the firm, such as homeowners insurance. Allstate, for example, offers a 10% car insurance discount and a 25% homeowners insurance discount when you bundle them together, so check to see if such discounts are available and applicable.³

2. Pay Attention on the Road

In other words, be a safe driver. This should go without saying, but in today’s age of increasing in-car distractions, this bears mentioning as much as possible. The more mindful you are, the more accidents or moving violations you’ll be able to avoid—events that raise your insurance rates. Travelers offers safe driver discounts of between 10% and 23%, depending on your driving record.⁴

For those unaware, points are typically assessed to a driver for moving violations, and more points can lead to higher insurance premiums (all else being equal).

3. Take a Defensive Driving Course

Sometimes insurance companies will provide a discount for those who complete an approved defensive driving course. Drivers may also be able to reduce the number of points they have on their licenses by taking a defensive driving, accident prevention, or other course.

Make sure to ask your agent/insurance company about this discount before you sign up for a class. After all, it’s important that the effort being expended and the cost of the course translates into a big enough insurance savings. It’s also important that the driver sign up for an accredited course. Every state has its own rules about accredited defensive driving courses.

4. Shop Around for Better Car Insurance Rates

If your policy is about to renew and the annual premium has gone up markedly, consider shopping around and obtaining quotes from competing companies. Also, every year or two it probably makes sense to obtain quotes from other companies, just in case there is a lower rate out there.

Remember, cheap doesn’t always mean good, and going with the lower-priced company isn’t always the wisest decision. That’s because the insurer’s creditworthiness should also be considered. After all, what good is a policy if the company doesn’t have the wherewithal to pay an insurance claim?

To run a check on a particular insurer, consider checking out a site that rates the financial strength of insurance companies. The financial strength of your insurance company is important, but what your contract covers is also important, so make sure you understand it. Insure.com’s site bases its insurance company ratings on data assembled by Standard and Poor’s.⁶

In general, the fewer miles you drive your car per year, the lower your insurance rate is likely to be, so always ask about a company’s mileage thresholds.