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Car Insurance for Hybrid Cars
Car Insurance for Hybrid Cars
Written by
Kervin Mathew
Edited by
Ellie Garran
Reviewed by
Adrian BennettCompare car insurance policies the easy way
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What are hybrid cars and how do they work?
Long story short
Hybrid cars run on a combination of electricity and traditional fuel
Growing in popularity, hybrids made up 14% of all new vehicle sales in 2024 – up from 8% in 2023.
You don’t need special hybrid car insurance, but pay attention to the level of cover
Comprehensive car insurance is the only type that will cover damage to your own car.
Hybrids come with higher repair costs because of their rarer and more complex tech
Therefore, car insurance for a hybrid vehicle can turn out to be more expensive.
What are hybrid cars and how do they work?
Put simply, hybrid cars are vehicles that can run on both electricity and traditional fuels such as petrol and diesel.
Hybrids are typically powered by both an electric motor and an internal combustion engine, allowing motorists to experience the best of both worlds without having to pick a side. Known for their fuel efficiency and lower running costs, hybrids are gaining traction with road users Down Under.
In 2024, hybrid car sales in Australia kicked into a higher gear, making up 14% of total vehicle sales, and beating 2023’s 8% of total sales by a country mile.1Drive.com.au – Australia’s best-selling hybrid cars in 2024 revealed
Currently, you might come across the following types of hybrid vehicles:
- Full hybrids – These run on their internal combustion engine and electric motor, either one at a time or both at once.
- Plug-in hybrids – These require an external power source like a power point or charging station to charge their batteries (just like a smart watch).
- Mild hybrids – These have a smaller electric motor designed to make the main engine more fuel efficient, rather than powering the car by itself.
The main difference between a hybrid and an electric vehicle (EV) is that EVs don’t have an internal combustion engine and can only be powered by electricity.
Do I need special car insurance for a hybrid?
Hybrids certainly are a special breed of vehicle, but you don’t need special car insurance to insure one. Any insurance policy that covers a petrol- or diesel-powered vehicle can also cover a hybrid car.
Here are the types of car insurance you could consider for your hybrid.
Comprehensive car insurance is the only type of insurance that covers damage to your own car, regardless of who’s at fault. It also covers other people’s cars and property.
Third-party fire and theft insurance covers damage to other people’s cars and property, as well as theft and fire damage to your car.
Third-party property insurance covers damage you cause to other people’s cars and property, but it doesn’t cover damage to your own car.
Does a hybrid cost more to insure?
Yes, a hybrid car typically costs more to insure than a vehicle that runs purely on traditional fuels. Here are some potential reasons for that.
A hybrid vehicle can be more expensive to replace than a traditional car if it’s written off or stolen. And the higher the replacement cost, the higher the insurance premium.
The advanced gizmos and gadgets on a hybrid can sometimes be hard to repair or replace. There’s also a shortage of repairers specialising in hybrid vehicles.
Hybrid car batteries are a crucial part of any hybrid vehicle. And each of them can fall within a price range of $2,000 to $20,000 each. That’s a lot more than a traditional 12-volt car battery!
As well as hybrid-specific factors, there are a few other things that go into calculating your car premiums:
- driving and claims history
- age and gender
- where you park your car
- how much you drive
- your excess
- payment frequency (annually or monthly)
- level of cover, including optional extras.
Helpful tip
After looking at car insurance pricing options, it might be easy to settle on a cheaper third-party policy. But if you factor in the costs of repairing or replacing a damaged hybrid vehicle, you might find that comprehensive cover is a no-brainer. Comprehensive car insurance can provide far more coverage and value, as well as options like having your hybrid insured for an agreed value, instead of its typically lower market value. This and other perks are generally only offered with comprehensive car insurance.
Adrian Bennett
General Manager for General Insurance
What should I consider when choosing car insurance for a hybrid?
So, you’ve looked at the lot and picked out the hybrid that suits you best. Good on ya! Time to do the same with car insurance.
When narrowing down car insurance options for your hybrid, it helps to consider some of these features.
Battery repairs and replacement
Because batteries do a lot of the work in hybrid cars, they can occasionally overheat and catch fire. You might want your policy to cover battery damage, especially from fires.
Charging equipment
Plug-in hybrid electric vehicles (PHEVs) require cables or charging stations to recharge their batteries. If you have a PHEV, you might want your policy to cover charging equipment.
Choice of repairer
Hybrid car technicians can be hard to find. Some policies can cover repairs done by your preferred hybrid car repairer, even if they’re outside the insurer’s repairer network.
New car replacement
Say your hybrid is written off or stolen. If your policy offers new car replacement, you can sleep easy knowing your car will be replaced with the same or a similar make and model.
How can I try and save on car insurance for a hybrid?
Given that car insurance works the same way for hybrids and traditional vehicles, there’s no secret code to reducing premiums for your hybrid car. Instead, just like for a traditional car, you may be able to save on car insurance by following these tips.
- Increase your excess – a higher excess typically reduces your premium because you take on more risk.
- Pay your premium annually instead of monthly or fortnightly to try and bag a discount from your insurer.
- Keep your car secure with anti-theft features and, if possible, in a lock-up garage or under cover.
- Go out-of-pocket for repairs that cost around the same as your excess – your claim history will thank you.
- Limit the age and number of drivers listed on your policy. Younger drivers can up the risk factor.
- Consider a pay as you drive policy for reduced premiums if you drive within a certain kilometre-limit per year.
- Use a comparison tool to shop around for policies to help ensure you’re getting a good deal.
Frequently asked questions
Does car insurance cover charging equipment?
It depends on the insurer and the policy you choose. Some policies may not cover the charging equipment that’s essential for plug-in hybrids. Be sure to read the product disclosure statement (PDS) so you don’t find yourself powerless if a cable is damaged or a charging station goes poof!
Does car insurance cover battery replacement?
A comprehensive car insurance policy typically covers replacing your battery if it’s damaged due to an insured event such as a collision, storm, or fire, or if it’s stolen. Anything outside of these events, such as battery replacement due to wear and tear, won’t be covered by car insurance.
You can read the product disclosure statement (PDS) to get a better picture of what’s covered (and not covered) under a policy.
How do hybrids differ from EVs in terms of car insurance?
Hybrids are generally cheaper to insure than their slightly more advanced cousins, electric vehicles (EVs). Here are some reasons why:
- Hybrids use more conventional, less advanced components than EVs, making them cheaper to repair.
- Hybrids generally have a lower price tag than EVs, which is reflected in insurance premiums.
- Hybrids can have lower battery replacement costs because they require smaller batteries than EVs.
- Unlike EVs, most hybrids don’t require external charging equipment (aka more stuff to insure).
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