Every year, millions of drivers might want to try to find the most affordable auto insurance possible, and the reason why is obvious. However, a small subset of those bargain-seeking Americans is likely to find very little wiggle room in this regard, depending upon the types of cars they own, because it’s often far more expensive for those with electric and hybrid cars to cover their vehicles. The more insurance agents can do to clarify why this is, and what owners might be able to do to better understand their policies overall, the better off they’re both likely to be going forward.
One of the biggest reasons that it costs more to insure a hybrid or totally electric vehicle is relatively simple: When they need repairs, that work costs a lot more to complete, according to a report from the consumer financial advice site Nerdwallet. And because they tend to be smaller vehicles, the percentage of the cars that get into accidents tend to be larger. Of course, the difference here is not always especially big, but it’s usually large enough that drivers of those types of vehicles will have some concerns about finding the most affordable coverage.
What else is a factor?
Further, these vehicles are also more likely to get into accidents that involve cyclists or pedestrians, leading to more claims as well, the report said. The generally accepted reason for this is that hybrid and electric vehicles run very quietly, at least in comparison with gas-powered cars and trucks, so they’re more likely to sneak up on people, so to speak. However, at the same time, it’s important to note that people who get into accidents are 25 percent less likely to be hurt themselves when they’re in a hybrid car than a traditional vehicle.
The more that insurance agents can do to help their clients – regardless of their coverage situations or the vehicles they drive – better understand their policies, the more likely they will be to engender good relationships with their clients. In fact, solid communication has often been shown to be a driver of customer satisfaction over even being able to provide occasional discounts for clients. Therefore, when agents take greater steps to help people in this way, they’re far more likely to have increased client retention rates.