Though we’re coming out the economic recession of the last few years, Americans seem to have adopted a much more frugal sensibility. The overindulgence and lush lifestyles that were popular during the 80s and 90s have waned. These days, Americans are much more likely to be looking for deals and pinching pennies, especially when it comes to bigger and longer lasting expenses. If you’re in the market for a new car, here are three ways that owning a hybrid can save you money:

Save money on gas
One of the things that everyone knows about hybrid cars is that they have great fuel economy. Hybrid fuel economy is so impressive because the car runs from two different power sources — one is the gasoline you pump into the car at the gas station, and the other is an electric battery. This means that the car does not run from a gas source all of the time like traditional vehicles do.

Get tax breaks
Hybrid owners are also often eligible for tax breaks in the United States. Owning a hybrid could save you up to $3,400 in taxes per year.

Save on car insurance
One of the long lasting expenses related to car ownership is having to pay for insurance. Since research shows that hybrid owners are less likely to get into car accidents, some insurance companies offer discounts for hybrid owners.

The one problem with these cars is that hybrid batteries often fail, and since they are essential to the vehicle’s function, a hybrid owner will inevitably be looking at hybrid battery repair or replacement; however, all of the money you’ll save on gas, taxes, and insurance will more than make up for it. This is a great source for more.