Are Hybrid Cars Worth Paying Extra? Here’s What You Need to Know, and How to Tell

The upfront cost of a hybrid can add anywhere from $1,400 to $3,000 over the gas-powered version of the same car. And many hybrids are sold as premium or top trims only, meaning the starting price is higher.

And while you save on gas and maintenance, Insurance tends to be more expensive, depending on the company, due to added technology and potentially high repair costs, such as replacing a hybrid battery in the event of a crash. These are details to consider when thinking about purchasing a hybrid.

Then, there’s the “payback” value, or the time it’ll take to recoup the extra cost of a hybrid. This is a pretty basic formula: Using the fuel economy of the hybrid and the gas model, calculate the total cost of driving per year, then divide the difference in the price of the two to see how many years it’ll take to ‘pay back’ the added cost.

For instance, the Toyota RAV4 XLE carries an MSRP of $30,760 and averages 30 MPG. The hybrid version is priced at $33,810 and averages 40 MPG.

Assuming a gallon of gas costs $3.25, the annual cost to drive 12,000 miles is $1,258 in the XLE. It would cost about $975 to drive those same 12,000 miles in the XLE Hybrid, a savings of $283 a year. This means it’ll take 10.78 years to realize the payback of the price of the hybrid versus the non-hybrid model.

However, differences in gas prices and miles driven can make all the difference. Drivers who drive 18,000 miles a year can see a payback period of just 6 years if gas is priced at $3.25; if gas is $4.60 a gallon, that payback period drops to 4 years.

Just about anyone can benefit from some extra miles per gallon. However, there are a few people who would benefit from a hybrid more than others. Commuters are top of the list, both those who are stuck in stop-and-go traffic and those who travel a distance, simply because better MPG means less money spent at the pump.

A hybrid can be even better for city drivers, though since it uses battery power to move the car at lower speeds, and all that time on the brakes adds up to a regenerated battery.

Drivers who commute long distances and do a lot of highway driving may not see the savings from a hybrid since they should be getting the best fuel economy from their car—lead-footed drivers excepted.

In a word, no. Standard hybrid technology works to charge the battery while you’re driving so no plug is necessary. Plug-in hybrid electric vehicles, or PHEVs, have a charge port and need to be plugged in to function as intended.

PHEVs are more of an electric car with a gas engine, versus a conventional hybrid that assists the gas engine with battery technology to increase fuel economy and reduce emissions. Buyers who simply want better MPG and emission-free driving and don’t mind getting gas should look for a hybrid rather than a PHEV.

Thankfully, the utilization of electric motors or batteries and a gas-powered motor means the two power plants are sharing the load. Less wear on both systems means both systems last a lot longer than they would if they were the sole source of propulsion.

While most rational people worry about having to replace the hybrid battery or other related components, many companies offer comprehensive warranties on their hybrids. For instance, all companies offer eight-year/100,000-mile or 10-year/150,000-mile warranties to cover the hybrid system.

Toyota‘s hybrid system is known to last much longer than 180,000 miles in testing. Ford Escape hybrids and Toyota Priuses in New York used as taxis have logged well over 200,000 miles without needing battery replacements, according to Edmunds.

Additionally, the outlet reports that the cost of hybrid battery replacements is dropping as hybrid technology becomes more mass-produced. For instance, the cost of a battery replacement for a 2005-2011 Honda Civic hybrid has dropped from $2,400 in 2009 to $1,700 today.

As a bonus, a hybrid’s regenerative braking system uses magnets to both charge the battery and slow the vehicle, saving on brake pads. The only time the brake pads are used is when you need to make a quick, hard stop. Believe it or not, most hybrids can go well over 100,000 miles before needing the brake pads changed.

Aside from oil changes, there’s nothing extra buyers have to worry about when buying a hybrid.

That’s another “it depends” answer, as it truly depends on the insurance company. Some insurance companies will charge just as much as they would a gas-powered model, others will give incentives, while others may charge more due to the “high risk” or increased maintenance costs should the hybrid system become damaged and need replacing in an accident.

It all depends on previous claims from the same model you own, how much the vehicle is worth, and if there are known risks of fire.

Because there are so many variables, it’s important to clarify with your agent before pulling the trigger—especially if the potential extra cost will put you in a bind.

The answer to that one is clear: Yes! Buying a used hybrid doesn’t pose any extra risks over buying a used gas-powered car; maintenance and longevity is about the same. You’ll still need to do the cost/benefit math to understand which will better serve your driving needs and budget. Less overall wear, lower maintenance costs,and insurance costs are all factors to consider, too.

However, for all those reasons, hybrids tend to hold their value and can command a premium on the resale market. And the market for used hybrids is actually going up since most buyers today lean towards used hybrids. So, keep that in mind if resale value is important to you when it comes time for a new vehicle.

If you’re a commuter, a short-distance driver, or an environmentally conscious person, you can certainly justify the higher up-front costs and potentially higher insurance costs.

Still, there’s no such thing as a person who wouldn’t benefit from driving a hybrid in some capacity. Whether it’s for fuel savings, savings on general maintenance, or longevity, the list of reasons why you shouldn’t buy a hybrid is very short in comparison to why it’s wise.

Ultimately, we’re seeing more brands turning to hybrid technology to meet customer demands, emission standards and fuel economy requirements. Pretty soon it may not be worth comparing a hybrid to a conventional gas model; they may simply be one in the same.