AZEqualizer
10-25-2008, 03:19 PM
Wall Street Journal (http://online.wsj.com/article/SB122471188978360023.html) had some interesting insight about insuring more fuel-efficient vehicles.
http://www.blogcdn.com/www.autobloggreen.com/media/2008/10/100_dollars.jpg
This year's higher gasoline prices are prompting drivers to switch to smaller, more fuel-efficient cars. The trouble is, some of the money they save may be going to higher insurance premiums.
Small cars generally cost more to insure than larger ones because they're involved in more accidents and incur bigger claims, especially for injuries. That's true regardless of the driver profile, though younger and less-experienced drivers tend to buy smaller, cheaper cars.
Small cars also tend to have higher theft rates, and some are used more often in street racing, both of which add to insurance costs. Four of the top 10 most-stolen vehicles in the U.S. are compact cars, according to the National Insurance Crime Bureau, a nonprofit organization funded by property-casualty insurers, including 1990s-era Honda Civics and Accords. (See www.nicb.org (http://www.nicb.org/) for a list of the most-stolen vehicles.)
A recent study by the Highway Loss Data Institute, an affiliate of the IIHS, found that overall insurance costs for crash damage were higher for 11 of 12 hybrid cars and SUVs than for their gas-only counterparts.
"Hybrid cars cost more to insure because they can't [always] use after-market parts, the labor charges per hour are higher, and the they take longer to repair," says Amy Danise, a spokeswoman for Insure.com.
Edmunds had this to say: (http://blogs.edmunds.com/greencaradvisor/2008/10/higher-insurance-costs-and-repair-bills-tend-to-erode-fuel-savings-of-hybrids.html)
We've reported on the "hybrid premium" -- the additional cost you can expect to pay to buy a hybrid instead of a comparable non-hybrid model in the same automaker's lineup.
If you're thinking of buying a hybrid, it might interest you to know that the money you'd hope to save on fuel you might end up spending on bigger automotive repair and insurance bills.
http://blogs.edmunds.com/greencaradvisor/Toyota_Prius_cutmodel-400.jpg
http://www.blogcdn.com/www.autobloggreen.com/media/2008/10/100_dollars.jpg
This year's higher gasoline prices are prompting drivers to switch to smaller, more fuel-efficient cars. The trouble is, some of the money they save may be going to higher insurance premiums.
Small cars generally cost more to insure than larger ones because they're involved in more accidents and incur bigger claims, especially for injuries. That's true regardless of the driver profile, though younger and less-experienced drivers tend to buy smaller, cheaper cars.
Small cars also tend to have higher theft rates, and some are used more often in street racing, both of which add to insurance costs. Four of the top 10 most-stolen vehicles in the U.S. are compact cars, according to the National Insurance Crime Bureau, a nonprofit organization funded by property-casualty insurers, including 1990s-era Honda Civics and Accords. (See www.nicb.org (http://www.nicb.org/) for a list of the most-stolen vehicles.)
A recent study by the Highway Loss Data Institute, an affiliate of the IIHS, found that overall insurance costs for crash damage were higher for 11 of 12 hybrid cars and SUVs than for their gas-only counterparts.
"Hybrid cars cost more to insure because they can't [always] use after-market parts, the labor charges per hour are higher, and the they take longer to repair," says Amy Danise, a spokeswoman for Insure.com.
Edmunds had this to say: (http://blogs.edmunds.com/greencaradvisor/2008/10/higher-insurance-costs-and-repair-bills-tend-to-erode-fuel-savings-of-hybrids.html)
We've reported on the "hybrid premium" -- the additional cost you can expect to pay to buy a hybrid instead of a comparable non-hybrid model in the same automaker's lineup.
If you're thinking of buying a hybrid, it might interest you to know that the money you'd hope to save on fuel you might end up spending on bigger automotive repair and insurance bills.
http://blogs.edmunds.com/greencaradvisor/Toyota_Prius_cutmodel-400.jpg