The Greenest Car You Can Buy Isn't an EV -- It's This

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Recently, the American Council for an Energy Efficient Economy (ACEEE) assessed hybrid and electric vehicles to determine the most environmentally friendly. The result was surprising.

The group looked at a handful of factors, including vehicle emissions and pollutants generated when the cars are being assembled and manufactured, and found that the 2024 Toyota Prius Prime, a hybrid, was more environmentally friendly than many pure EVs.

Hybrid vehicles are having their day in the sun right now, with many Americans preferring them over EVs because they're cheaper and you don't have to hunt for charging stations on long trips.

But there's one thing that hybrid buyers could still pay a hefty price for: car insurance. Here's what you need to know.

A few benefits of hybrid vehicles

The ACEEE evaluated vehicles from this year's models based on air pollution created from vehicle manufacturing and disposal, production and distribution of fuel and electricity used to power the vehicles, and tailpipe emissions.

Based on its findings, the 2024 Toyota Prius Prime, a plug-in hybrid, was the greenest vehicle. Hybrids have grown in popularity recently because they're much cheaper than EVs.

In 2023, the average hybrid was about $17,000 cheaper than an EV. While traditional vehicles are cheaper than hybrids, a hybrid is a great choice if a consumer wants an eco-friendly car that's not as expensive as an EV.

Many consumers also prefer them because there is still a lack of adequate EV charging infrastructure in many places. Even when fast-charging stations are available, refueling an EV with electricity to 80% takes between 20 minutes and 1 hour, which is still too long for many consumers.

It's also more expensive to repair many EVs right now because of the lack of EV technicians and higher costs for replacement parts. Batteries are the most costly part of an EV, accounting for up to 40% of the car's cost. Hybrids use batteries as well, but they're much smaller and typically cost about half as much to replace.

One downside for hybrid owners

One drawback of buying a hybrid is that you'll likely pay more to insure it than for a traditional vehicle, though it may still be cheaper than an EV. Hybrids have more complex powertrains than conventional vehicles do, making them more expensive to repair and, as a result, to insure.

If you bought a hybrid recently, here's how to lower your rates.

Improve your credit score

Many insurance companies use your credit score to help determine your premiums. One way to boost your credit score is to lower the amount you owe. For example, paying your credit card balance down so you use less than 30% of your available credit could help improve your score.

Look for discounts

Most insurance companies will apply available discounts to your policy, but there are additional steps you can take to get even more of them. For example, taking a defensive driving course can lower your premiums by up to 10%. Some companies also offer usage-based discounts that track your driving habits and adjust your premiums based on how well you drive.

Bundle home and auto

As the commercials suggest, bundling your auto insurance with your home (or renters) policy can usually save you money. The more coverage you have, the more your savings, which can be up to 7%.

Compare insurance companies

Sticking with your current car insurance provider may be convenient, but it could cost you. A recent survey found that 60% of drivers who shop around for car insurance find cheaper car insurance.

Unfortunately, auto insurance prices aren't expected to come down anytime soon, so it might be a good idea to consider one or two of these suggestions. If nothing else, comparing your current premiums to one or two other car insurance companies will let you know whether you're getting a good deal.

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