Hybrid vs. EV: Which Is Right For You?

If you're in the market to buy a new car, choosing between hybrid vehicles and electric vehicles (EVs) could be part of your decision process. EVs have gotten a lot of headlines in the past few years, with generous EV tax credits helping buyers get an immediate discount at the dealership. New EV charging stations are being built nationwide to help EV drivers fuel their vehicles with the power of electricity.

But not everyone is ready for the "range anxiety" that can come with a fully battery-powered car. If you'd rather have the simplicity of a gas-powered car -- while still saving money on gas -- buying a hybrid car can be a good option to tide you over until the fully electrified future of transportation.

Let's look at a few situations where buying a hybrid vs. EV can be the right choice for your driving style.

Who should buy a hybrid car instead of an EV

If any of these examples sound like you, you'd probably be better off buying a hybrid vehicle.

You can't charge an EV at home

Probably the biggest deal breaker for when to buy a hybrid instead of an EV is if you don't have a garage or other access to an outlet to charge your EV at home. Yes, you can still use nearby public charging stations, but most people prefer to charge their EVs at home, so it's a convenient part of their everyday (overnight) routine.

You need to make long drives through rural areas

EV charging stations are getting more common across America, but they're still often easier to find in densely populated urban areas, where lots of people drive EVs. If you just want an EV for everyday city driving or suburban commuting, you might have plenty of charging stations nearby to avoid "range anxiety."

But if you drive a lot in the countryside, small towns, or sparsely populated rural areas with few EV chargers, you might need the reassurance of good ol' gasoline in the engine. This would make a hybrid car a better choice.

You don't want to pay extra for EV car insurance

EVs are more expensive than regular gas-powered cars, and they can be more expensive than hybrid cars. Sometimes by thousands of dollars. The extra costs of EVs are also reflected in the cost of EV car insurance. EV car insurance might cost about 10% extra compared to a regular car insurance policy -- or about $320 more per year.

Hybrid car insurance might also be more expensive than a typical gas-powered vehicle of the same make and model -- maybe around 7%-11% more costly, according to the insurer Lemonade. Shop around for cheap car insurance before you start shopping for a new car (hybrid or EV). And think carefully about your options to get a cheaper car insurance premium by raising your deductible, pursuing discounts, or other strategies.

Who should buy an EV instead of a hybrid

Hybrid vehicles can be a good "bridge" to the future of fully-electric cars. But what if you want the future to come today? Here are a few examples of people who might be well-suited to EV ownership.

You never want to buy gas again

Because EVs cost more than regular cars, most people who buy an EV are probably not worrying each month about whether they can afford gasoline. But it's the principle of the thing: if you just hate burning gas, hate spending money on gas, and never want to do that again…buying an EV can liberate you from even noticing the price at the pump.

You want to fight climate change

One of the best money moves you can make to fight climate change is to buy an electric vehicle. Driving an EV reduces your carbon emissions by 78% compared to a gas-powered car. Over the lifetime of your car ownership, especially as electric grids get greener with more electricity coming from renewable sources like wind and solar, the carbon footprint of your EV will be substantially lower than that of a gas-powered car.

You want EV tax credits

One of the best ways to get a discount on the purchase of an EV is to qualify for EV tax credits. If you choose the right vehicle and have qualifying income, you can get new EV tax credits of up to $7,500, and used EV tax credits of up to $4,000.

There is one type of hybrid vehicle that can get EV tax credits: plug-in hybrid electric vehicles, or PHEVs. A few examples of PHEVs are the Toyota Prius Prime (which I own and love) and the Chrysler Pacifica Plug-in Hybrid minivan. Check out FuelEconomy.gov for more details on which cars qualify for EV tax credits.

Bottom line

If you want to burn zero gasoline and make the biggest impact to fight climate change, buying an EV instead of a hybrid is the better choice. But if you want to save some money on the purchase price of your car (and possibly on car insurance) while avoiding the limitations of EV batteries, a hybrid car could be better for your budget.

Want a more detailed, personalized look at the cost of ownership of EVs vs. hybrids and gas-powered cars, based on your local gas prices, electricity costs, and how much you drive? Check out this great free tool from the U.S. Department of Energy to compare multiple makes and models of cars -- Alternative Fuels Data Center: Vehicle Cost Calculator.