What are the different types of hybrid cars?

Many Canadians are choosing to make a hybrid their next vehicle. According to Statistics Canada, new hybrid registrations increased by 24.6% in 2024, while plug-in hybrid (PHEV) registrations increased by 52.8% compared to the year before.

If you’re not quite ready to go fully electric, a hybrid can be the perfect middle ground. You get better fuel efficiency, fewer emissions, and you don’t have to change your driving habits too much. But with several types of hybrids out there, series, parallel, and even blended hybrid systems, not to mention plug-in hybrids and mild hybrids, it’s easy to get overwhelmed.

So, how do you figure out which one fits you and your lifestyle best? In this guide, we’ll break down the different types of hybrid vehicles, how they work, and where each one stands out.

What is a hybrid vehicle?

Before we dive into the different types of hybrid cars and systems on the market today, we’re first going to explain what a hybrid car is. Many people like to compare hybrid vs. gas cars and hybrid vs. electric cars. The reality is that hybrid vehicles are a mix between the two. Hybrid electric vehicles utilize two unique driving technologies:

• An electric motor, which is run by an electric car battery

• An internal combustion engine, which runs on gas

A distinctive feature of hybrid cars is their regenerative braking systems, which work to recharge the electric car battery. A regenerative braking system works by using the heat that is generated from regular friction braking and distributing that energy to the battery rather than wasting it.

Due to this advanced system, hybrid vehicles don't consume nearly as much gas as regular vehicles, even when they are running on their internal combustion engine. This translates to fewer emissions and can also save drivers money at the gas station.

That said, hybrid vehicles are generally more expensive than gas-powered cars, which is one of the disadvantages of hybrid cars. However, several provincial governments offer incentives to drivers that may make owning certain types of hybrid cars cheaper.

Overall, a hybrid might be a great choice for a driver who wants to reduce their carbon emissions but has only ever driven gas-powered cars up to this point. Unlike with a fully-electric car, you don’t have to be as worried about how far the electric car can go since a hybrid vehicle also contains a combustion engine that will take over should the electric motor run out of battery.

Series hybrid systems

In a series hybrid system, only the electric motor drives the wheels, while the gasoline engine acts solely as a generator to charge the battery or supply power to the electric motor when needed. In this system, the gas engine never directly powers the wheels.

This setup makes a series hybrid feel more like a fully electric vehicle in everyday driving. The gasoline engine turns on only when the battery runs low or during high-demand situations to help extend the range. Unlike traditional engines that rev up and down with your speed, because the engine is used only to generate electricity, it can operate at a consistent, fuel-efficient RPM. In what follows, we examine a set of examples related to series hybrid systems:

Examples of hybrid vehicles with series hybrid systems

• BMW i3 REx (Range Extender)

• Nissan e-POWER (Note, Serena, etc.)

Series hybrids are especially efficient in urban settings. At lower speeds and in stop-and-go traffic, the electric motor does all the work, providing smooth and quiet acceleration. Since the gas engine isn't constantly turning on and off, you also enjoy a quieter ride and better fuel economy in city conditions. When the battery charge gets low, the gas engine kicks in seamlessly to generate electricity, keeping the car going without needing to plug it in.

Parallel hybrid systems

A parallel hybrid system is one of the most common types of hybrid drivetrains, and it’s used in many of the most popular hybrid electric vehicle (HEV) models available in Canada. Unlike series hybrids, where only the electric motor drives the wheels and the gas engine acts as a generator, parallel hybrids use both the gasoline engine and the electric motor to power the wheels, either together or separately.

In a parallel hybrid, the gas engine and electric motor are connected to the drivetrain in such a way that they can both propel the vehicle at the same time. The vehicle automatically switches between power sources depending on what’s most efficient for the current driving condition.

At low speeds, the electric motor does most of the work, especially during stop-and-go city driving. At higher speeds or when extra power is needed (like climbing a hill or merging onto the highway), the gas engine kicks in to assist or take over entirely. The battery is charged through regenerative braking and by the engine itself when needed, so there’s no need to plug in. We now review selected examples of series hybrid vehicles with parallel hybrid systems:

Examples of hybrid vehicles with parallel hybrid systems

• Toyota Prius (non-plug-in models)

• Hyundai Ioniq Hybrid

• Honda Accord Hybrid

• Kia Niro Hybrid

Parallel hybrids tend to do great in city driving, where the electric motor can handle much of the load, helping reduce fuel consumption. On highways, where the gas engine operates more efficiently, the hybrid system optimizes power use for better mileage compared to traditional gas-only cars. For Canadian drivers dealing with urban commutes and long rural stretches, this balance makes parallel hybrids especially practical.

Series-parallel hybrid systems

Series-parallel hybrids also known as power-split hybrids are designed to give you the fuel efficiency and smoothness of a series hybrid while also offering the power and versatility of a parallel system. In a series-parallel hybrid, the vehicle can be powered by:

• The electric motor

• The gas engine

• Or both working together

What makes this system smart is that it automatically decides which setup is the most efficient for your driving situation. At low speeds, it might rely mostly on electric power. When you need more power, say, merging onto a highway or climbing a hill, the gas engine kicks in to help. And when cruising, the system may use the gas engine more, since it’s more efficient at higher speeds. These hybrids also use regenerative braking to charge the battery, and in some models, you can even drive short distances in EV-only mode. The following examples illustrate series hybrid vehicles with series-parallel hybrid systems:

Examples of hybrid vehicles with series-parallel hybrid systems

• Toyota Highlander Hybrid

• Ford Escape Hybrid

• Toyota Prius

• Toyota RAV4 Hybrid

For Canadian drivers facing a mix of urban traffic and highway stretches, not to mention our harsh winters, series-parallel hybrids strike a perfect balance between performance, fuel savings, and all-season practicality. They might just be the most versatile hybrid option on the market.

Plug-in hybrids (PHEVs)

Plug-in hybrid electric vehicles (PHEVs) are hybrid vehicles with a twist. Like traditional hybrids, they combine a gasoline engine with an electric motor. What makes them different is that you can plug them in to charge the battery, giving them the ability to drive on electricity alone for short distances before switching over to gas.

Like a regular hybrid, a plug-in hybrid car has both a gas engine and an electric motor. But what sets it apart is the larger battery, which can be charged by plugging into a wall outlet or charging station.

PHEVs start out using electricity stored in a larger battery than a regular hybrid. This lets PHEVs drive short distances using electricity only before the gas engine kicks in. According to Consumer Reports, that short distance, on average, equals around 20 to 40 miles (roughly 32 to 64 kilometres). Then, once that electric range is used up, the gasoline engine kicks in, and it drives just like a regular hybrid from there. You can recharge the battery by plugging it into a standard household outlet, a Level 2 charger, or using regenerative braking. In what follows, we present PHEVs types alongside examples:

Examples of PHEVs

• Toyota RAV4 Prime

• Ford Escape PHEV

• Hyundai Tucson PHEV

• Mitsubishi Outlander PHEV

• Kia Niro PHEV

PHEVs are great for people who want to experience electric driving without fully giving up the convenience of gasoline. Many PHEV owners find they rarely use gas during city driving, especially if they recharge regularly at home or work. Charging overnight at home is usually more than enough to top up the battery for daily use.

Mild hybrid electric vehicles (MHEV)

You may have also heard or seen the acronym MHEV, which stands for mild hybrid electric vehicle. These are the most basic types of hybrid on the market. The biggest difference between conventional hybrids and MHEVs is that an MHEV can’t drive on electricity alone. Instead, it uses a small electric motor to assist the gas engine during tasks like acceleration, idling, or coasting, to help improve fuel efficiency and reduce emissions.

MHEVs use a 48-volt battery and a belt-driven starter-generator. The system provides a power boost when needed and allows the engine to shut off more frequently (like when coasting or stopped in traffic). While the electric motor can’t move the vehicle by itself, it lightens the load on the gas engine, especially in stop-and-go city traffic. The examples below pertain to MHEVs:

Examples of MHEVs

• RAM 1500 eTorque

• Audi A6 45 TFSI MHEV

An MHEV isn't as fuel-efficient as a HEV, but it does still help you save money on gas. MHEVs are also generally cheaper than a HEV or PHEV.

Ownership costs and insurance considerations for hybrids

When it comes to the overall cost of owning a hybrid vehicle, there are a few key areas to consider, such as fuel or electricity use, maintenance, insurance, and long-term resale value. Below, we analyze each factor in detail:

Fuel costs

Hybrids offer significant savings at the pump. Thanks to their fuel-efficient design and ability to switch between electric and gas power, many drivers see significant reductions in fuel costs, especially in city driving. Plug-in hybrids (PHEVs) go a step further, letting you drive short distances entirely on electricity before switching to gas.

For example, the Toyota dealership in Belleville, Ontario, compared a 2023 Corolla Hybrid LE and a 2023 Corolla LE CVT, showing that hybrid drivers who drive 20,000 kilometres a year could save as much as 30 litres per month. According to Statistics Canada, the average fuel price in Toronto, Ontario, in March 2025 was $1.534. If a hybrid driver saves 30 litres of fuel per month, and the average fuel price is $1.534 per litre, they could save approximately:

• $46.02 per month, or

• $552.24 per year

Maintenance costs

Hybrid vehicles pair both a gasoline engine and an electric motor to give you the best of both worlds. But because you’ve got both systems under the hood, there’s a bit more to keep up with when it comes to hybrid car maintenance.

You’ll still need to handle all the usual stuff: oil changes, coolant checks, brake and steering fluid top-ups, spark plugs, hoses, filters, suspension checks, and tire care.

But hybrids also come with additional parts to watch, like the high-voltage battery and its special cooling system. These parts don’t need attention all the time, but when they do, the repairs can be more involved and more expensive, especially since not every mechanic is trained to work on hybrid systems. That's why it's important to follow your manufacturer's schedule to see how often parts should be inspected or maintained.

For most routine maintenance, the cost will likely be similar to a regular gas-powered car. It’s only when you get into hybrid-specific repairs that things might cost a bit more, so it’s worth finding a trusted shop or technician who knows their way around electric drivetrains.

Insurance costs

Hybrid and plug-in hybrid (PHEV) vehicles often come with slightly higher insurance premiums than traditional gas-powered cars.

The main reason for this is that it typically costs more to repair or replace a hybrid than a conventional car. Since hybrids have both a gas engine and an electric motor, there's more going on under the hood. That can mean more parts to fix if something goes wrong, and in some cases, you’ll need a technician who’s trained to handle hybrid systems.

Plus, while HEV batteries are usually smaller (and less expensive) than those in a BEV (battery electric vehicle), they’re still valuable components. And in larger PHEVs, the battery can be closer in size and cost to a BEV battery. Insurance companies factor into your premiums how much it'll cost to replace that battery.

If the battery is damaged in a crash, the repair bill can climb quickly. For HEVs, it can cost between $2,000 and $8,000 to replace just the battery, but for a PHEV, you could be looking upwards of $15,000 or more. That’s why many hybrid owners choose to carry additional car insurance coverage, like collision and comprehensive coverage, just in case, so they're not left to cover those costs themselves. However, that extra coverage can also bump up your premium.

Thankfully, many insurers in Canada offer discounts for eco-friendly vehicles, so owning a hybrid could still help you save overall. To find out how your hybrid insurance premiums might cost or to get a free quote for hybrid car insurance, reach out to BrokerLink.

The environmental impact of hybrid vehicles

One of the reasons Canadians are choosing to switch to hybrid vehicles is to help reduce their environmental impact. Hybrid vehicles are often promoted as eco-friendly alternatives to traditional gasoline-powered cars. But how much greener are they, really? Below, we present detailed discussions of each environmental impact associated with hybrid cars:

Emissions on the road

Hybrids emit significantly less CO₂ than conventional vehicles. According to the Canadian Energy Regulator, in provinces with low-carbon electricity grids like Quebec, Manitoba, and British Columbia, electric vehicles can emit almost no CO₂. While hybrids still rely on gasoline, their improved fuel efficiency leads to lower emissions compared to traditional cars.

Manufacturing footprint

You've probably heard that producing hybrid vehicles, especially their batteries, requires more energy and resources than manufacturing conventional cars. That fact is true. In fact, one such study by the Union of Concerned Scientists found that manufacturing an electric vehicle results in about 15% to 68% more emissions compared to a gasoline-powered vehicle, depending on the size of the vehicle and its battery capacity.

However, this initial environmental cost is typically offset within the first few years of driving due to the vehicle's superior fuel efficiency and lower emissions during operation. The study suggests that the "carbon debt" from manufacturing is generally repaid within the first few years of driving an electric vehicle.

So, overall, yes, hybrids really are a greener choice compared to gas-only vehicles. And while yes, building them, especially the battery, has a bit more environmental impact upfront, once they’re on the road, their lower emissions and better fuel efficiency make up for it pretty quickly.

If you're looking to reduce your carbon footprint without fully switching to an electric vehicle, hybrids offer a safe middle ground. They’re a perfect balance between being environmentally responsible and still keeping things practical for everyday life.

How to choose the right hybrid type for you

With more hybrid options on the market than ever, it can be tough to know which one fits your needs best. Would you be better suited with a HEV? A PHEV? Or maybe even an MHEV? What it really comes down to is your lifestyle, driving habits, and even access to charging. Let's help you decide:

You spend most of the time in the city: Series or parallel HEV

If most of your driving is short, stop-and-go trips, like running errands or commuting in traffic, a traditional hybrid (HEV) might be a great option for you. You’ll benefit from improved fuel economy thanks to regenerative braking and electric-only driving at low speeds, and there’s no need to plug it in when you get home.

You spend most of the time in the city and have access to charging: PHEV

If you do mostly short daily trips and have access to a garage or a nearby public charging station, a plug-in hybrid could be ideal. You can drive on electricity for errands or short commutes to work, which can help you save significantly on fuel prices throughout the year. Plus, if you decide to take a longer trip, you'll still have the gas engine to cover you once the battery runs out.

You enjoy taking frequent road trips: Series-parallel HEV

If you’re often on the highway or travelling longer distances, a series-parallel hybrid gives you the flexibility of gas for long hauls with hybrid efficiency in the city. You'll still get to reap the benefits of great fuel economy without having to worry about finding public charging stations along your route. And while a PHEV can also be fine for long road trips, because an HEV is typically lighter, it will likely get better fuel economy.

You're concerned about cost: MHEV

If you'd still like to make the switch to a hybrid, but the purchase price is weighing on you, then a MHEV might be a good place for you to start, as they are often more affordable than conventional hybrids. While they don’t offer electric-only driving, they do still give you a fuel-saving boost. An MHEV can be a great option if you want better efficiency without the added cost of more advanced hybrid systems.

Learn more with BrokerLink

If you'd like to learn even more about the different types of hybrid cars available in Canada, or if you have any questions about insuring one, reach out to BrokerLink. We are a team of experts who can help you decide which type of hybrid is best for your lifestyle, and from there, we can help you properly insure it.

Making sure your new hybrid is properly insured is just as important as choosing the right car. At BrokerLink, we’ve been around the block when it comes to auto insurance, so you can count on us to look out for your best interests. We’ll walk you through the mandatory coverage required in your province and help you find a policy that fits your needs and your budget.

You can reach us by phone, email, or in person at any one of our locations throughout Canada. No matter how you choose to get in touch, a BrokerLink insurance advisor will be happy to assist you. We also encourage you to take advantage of our free online quote tool that can provide you with a competitive quote in minutes.

Get an auto insurance quote