Hybrid Claims, Premiums Slightly Higher Than Conventional Counterparts - Study

Hybrid Claims, Premiums Slightly Higher Than Conventional Counterparts - Study

By Scott Doggett August 18, 2010

By Danny King, Contributor

Pricier repair components are likely spurring slightly higher car-insurance premiums for hybrid owners, though a surprisingly heavy foot on the part of Toyota Prius owners may also have something to do with it.

A hybrid-vehicle owner's propensity to favor car dealerships over the local mechanic for accident repairs is boosting the average cost of a car-insurance claim and may lead to higher insurance premiums for people buying alt-fuel cars such as the Chevrolet Volt and Nissan Leaf later this year, according to one report.

The average insurance claim by a hybrid owner is $182 higher - or 6.5 percent more - than the average non-hybrid claim, insurance-claim research firm and processor Mitchell International said in its third-quarter Industry Trends report. The average Honda Civic Hybrid (pictured) claim is 6.9 percent more expensive than that of gas-powered Civics, while Ford Escape Hybrid owners make claims that are on average 9 percent more than those of conventional Escapes, according to the report.

The pricier claims illustrate how hybrid owners are less likely to trust independent mechanics when it comes to properly repairing the more complex hybrid-car components, and more apt to simply get the car fixed at the dealer, especially if an insurance company is footing the bill. About 92 percent of components used to repair a hybrid are from the original equipment manufacturer, compared to about 87 percent for conventional vehicles, the report said.

"The parts needed to repair hybrid vehicles are generally more expensive than a conventional vehicle," said Christina Tyler Loznicka, spokeswoman for Allstate Insurance Co. "Also, because most hybrids are new to the repair market, there is a higher reliance on manufacturer parts."

Additionally, a Prius owner is 65 percent more likely to get a speeding ticket than a non-hybrid owner driving the same amount of miles, the Mitchell International report said, citing insurance-ratings research firm Quality Planning.

Either way, hybrid owners are likely paying marginally higher insurance premiums, which may also apply to those who start buying cars such as the Chevrolet Volt extended-range plug-in hybrid vehicle and Nissan Leaf battery-electric vehicle later this year.

For Allstate, the hybrid/non-hybrid difference is "as little as one cup of coffee a month," said Loznicka. A query on Geico's Website for a single, professional 40-year-old woman who lives in Los Angeles reveals an annual premium on a 2010 Prius of about $1,430, or about 4 percent more than the $1,376 annual premium for a 2010 Camry.

Loznicka declined to speculate what kind of premiums would be charged for the Volt or Leaf. Neither car could be queried for rates on the Geico Website.

Scott Doggett:  is an AutoObserver.com Associate Editor.