Auto Insurance - 5th Most Popular Cash For Clunkers Buy Is A Hybrid, But What Are The Auto Insurance Costs?

The AP has reported here that the fifth most popular cash for clunkers purchase (what buyers bought with their rebate) is the Toyota Prius. Because of federal tax credits, insurance discounts, and cost of ownership figures, hybrid cars are further proving themselves to be a wise consumer buy.

Hybrid cars are more expensive off the lot than their traditional counterparts, but the benefits are many-fold:

Federal Tax Credits
The federal government offers an income tax credit for Americans that purchase hybrid cars. Credits range from $450 to $3,000 depending on the make and model of the car. Time is running out on many of the credits, but savvy shoppers can still find great deals while this credit is available.
Insurance Discounts
Most insurance companies are offering discounts up to 10% for hybrid car owners. Car shoppers should compare auto insurance quotes before they purchase their new vehicles to get an idea of what their new premiums will cost.
Cost of Ownership
With low depreciation, fuel savings, and tax credits, the cost of ownership on a hybrid is lower than a conventional vehicle. Some take as little as a year to pay for themselves, others over five. Sooner or later, the break-even point is reached, and surpassed.
Fuel Savings
The fuel savings of a hybrid car is the gift that keeps on giving. Well after the break-even point, hybrid cars will save owners money on gas.
Environmental Impact
While there are some potential disposal problems with the batteries of hybrid cars, driving a hybrid reduces carbon emissions is often personally satisfying.
As fuel costs rise and incentives become available, the initial investment of purchasing a hybrid car over a traditional model is taking less time to pay for itself. If you're thinking of purchasing a new car (even if you can't trade-in a clunker) consider a hybrid.

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