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Electric cars could spark insurance discounts

Buy now, you probably know you may be able to reduce your carbon footprint and lower your insurance costs. Hybrid vehicle drivers are eligible for a discount on their auto rates. Many auto insurance companies offer hybrid car owners a 10 percent reduction on their premiums. Some insurers are now offering to give similar breaks to owners of all-electric vehicles. If you’re considering buying a battery-fueled car, ask about discounts when you apply for auto insurance quotes.

3 ways electric cars could get you discounts

1. Tax credits

The first all-electric cars from major auto makers are scheduled to be in dealerships by the end of 2010. Nissan is introducing its Leaf and GM is offering the Chevrolet Volt. (Both vehicles will be introduced in a few states, at first.) Unlike hybrids, which run on gas part of the time, the Leaf and the Volt are battery powered. Both vehicles will cost somewhere between $30,000 and $40,000, but buyers are eligible for $7,500 in federal tax credits. Leaf owners will also get a federal tax credit of $2,000 to help them pay for a $3,000 home recharging station. The Volt does not require a similar unit; its gasoline engine creates electricity when its battery power is low. No matter what kind of car you own, find out about discounts when you apply for auto insurance quotes.

electric cars insurance discounts 2. Insurance discounts

In California, a major auto insurer is offering owners of alternative fuel vehicles a 10 percent discount. Many insurance companies already offer hybrid car owners discounts based on their risk profiles. Insurers determine what kind of claims you are likely to file in the future based on the vehicle you drive. Insurers consider hybrid drivers safe, cautious drivers. If you own a hybrid or electric vehicle, make sure you ask about this discount when you get auto insurance quotes.

3. Low mileage

If you are considering owning an electric car to get around, you may not drive that many miles. If that’s the case, you may be eligible for a low-mileage discount. Insurers give drivers a break if they don’t put many miles on their vehicles. In addition, you live in a state where insurers offer pay-as-you-drive (PAYD) auto insurance, you can buy a policy based on the actual miles you drive rather than an on estimated number of miles. More than 30 states offer some form of PAYD insurance. Check with your auto insurance provider to see if a program is available in your state, before you obtain auto insurance quotes.

When you are ready to buy a new car policy, you can call agents in your local area, contact insurance companies directly or use to instantly get a competitive auto insurance quotes from the nation’s leading insurance providers. Simply fill out an online form on to find the right insurance coverage at the best possible price. Take the time to protect you and your family today.

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