You can get a discount on your car insurance if you drive a hybrid car. Currently two insurance companies offering this discount and discount amount is up to 10% of your insurance cost. These discounts not only apply to hybrid vehicles but may also apply to alternative fuel vehicles.

The Farmers Insurance Group of Companies was the first company that announced it is to offer an insurance discount to customers who own alternative-fuel or hybrid vehicles. The discount amount will be 5% for auto customers in California. The other company currently offers discount is Travelers Insurance. Travelers’ discount will equal 10%.

There is good reason for insurance companies offering this discount. Normally insurance premiums are calculated based on a number of factors including type of vehicle, vehicle price and driver characteristics. Research found that most hybrid drivers fall into a “preferred group” that is typically married with ages ranging between 41 and 60. It also found that hybrid drivers are Cautious driver and likely to have less claims. No wonder insurance companies offering discount to good driver.

But some other companies think otherwise such as State Farm says they will not offer these discounts to hybrid owners, because increased repair costs of hybrids and concern over risks the electric components might pose in the event of an accident.

It is likely that more and more companies will offer discount on hybrid auto insurance because of steady increasing hybrid and alternative cars owners and highly Competitive Insurance market.