WITH GASOLINE PRICES

hovering around $2.90 per gallon, many drivers are wondering: Is it time to buy a hybrid car?

Sales of gas-electric hybrids more than doubled last year, with nearly 200,000 vehicles registered, according to R.L. Polk & Co., an automotive market research firm. Still, the hybrid market is quite small, accounting for a little more than 1% of all vehicles on the road.

But while a hybrid car can dramatically cut your gasoline costs (particularly if you do a lot of city driving, which will largely rely on the electric component), it may not be a cost saver overall. Hybrids are, on average, about $3,000 more expensive than their gasoline-only counterparts, says Bradley Berman, editor of HybridCars.com. Thus far, that's been fine with most hybrid purchasers, who are largely motivated by doing good by the environment or are dazzled by the cool technology that hybrids employ.

Still, if you are thinking of going hybrid, there are plenty of perks and incentives out there to sweeten the deal. Tally these up, and you may indeed save by going this route. We found seven ways to save:

Federal Tax Credits
Hybrid cars do come with some nice tax breaks. Unfortunately, figuring out whether you can actually take advantage of these breaks requires more than just a healthy understanding of the U.S. tax code.

Here's the deal: Hybrid purchasers can supposedly enjoy a credit of up to $3,400, depending on which model you buy. That said, the IRS has only released exact credit amounts for Ford and Toyota models. Thus far, the heftiest credit you could get is $3,150 for a Toyota Prius. There's no word yet on when official amounts for other hybrids will be released.

If you want full credit for one of the more popular hybrids, like the Prius and the Honda Civic Hybrid, act fast, Berman advises. Credits begin to phase out after the manufacturer has produced 60,000 cars, and Toyota is reported to be near that mark. There are bills in Congress to extend or expand the incentives program, but immediate action is unlikely.

State Tax Credits
You can knock another $3,000 or so off the purchase price of your hybrid if you live in the right state. West Virginia is offering a credit of up to $3,750 off the purchase price of a hybrid, depending on its fuel efficiency and expense compared with a traditional automobile. Pennsylvania, meanwhile, has set aside $1.5 million for a flat-rate credit of $500, first come, first served.

Other states are knocking off sales tax instead. Washington, for example, is waiving its sales tax of 6.5%. And Tennessee is considering a bill that would cut the sales tax in half, to 3.5%, for purchases of a hybrid. For a list of programs and bills by state, click here.

Manufacturer Incentives
After federal tax credits, dealer cash and sales may seem like small peanuts, says Phil Reed, consumer advice editor for Edmunds.com. But don't forget to look for them. Right now, Ford is offering 0% financing on its hybrids, the Ford Escape and Mercury Mariner. You can also get $500 cash back on the Escape if you're active military personnel or, randomly, a member of the American Quarter Horse Association.

Employer Incentives

"I can't tell you how often I walk up to a [Toyota] Prius in the parking lot, thinking it's mine and it isn't," says Phyllis Davidson, a spokeswoman for software company Hyperion. That's because 120 employees have taken advantage of the company's "Drive Clean to Drive Change" program, which offers $5,000 toward buying or leasing a qualified hybrid vehicle.

You may be able to take advantage of employer incentives even if you don't work for a huge company like Google (which also offers $5,000). MOM's, an organic market in Rockville, Md., offers up to $3,000 to its employees. For a full list of employer programs, click here.

Auto Insurance Discounts
Two companies are currently offering auto insurance discounts to hybrid owners, says Berman: Travelers and Farmers Insurance Group. Farmers offers its 5% discount to California residents only, while Travelers' 10% discount applies to hybrid owners in 27 states.

Parking Privileges
You won't often see hybrid owners running out to feed the parking meter, says Don MacKenzie, a vehicles engineer with the Union of Concerned Scientists, a nonprofit that runs HybridCenter.org. Several major cities including Los Angeles, Salt Lake City and Albuquerque offer free metered parking for hybrids. Other cities are considering similar measures. Free parking doesn't mean you can't be ticketed, however, so abide by the meter restrictions no hogging that prime space all day in a two-hour spot. You'll also need to register your car. Albuquerque asks residents to register with the city's parking office, and place an identification sticker in the vehicle window.

Hybrid owners can also save on parking permits. Baltimore is offering discounted passes at 15 of its parking garages. At the garage on St. Paul Street, for example, you'll pay only $100 for a monthly pass, compared with $185 for regular vehicles. That's a savings of 46%. In Westchester, N.Y., hybrid owners get free parking at two commuter lots. Passes normally cost $75.

Access to Carpool Lanes
Solo drivers aching to get into the high-occupancy vehicle (HOV) lane during morning rush hour have tried everything from posing dummies in the passenger seat to claiming an unborn fetus as a car occupant. Thanks to a recently approved federal bill, states can allow more single commuters to enter the carpool lane if they are driving a hybrid that averages 45 miles per gallon or more.

But don't hit the gas pedal just yet. States require a special permit or sticker to avoid getting pulled over. Virginia, for example, requires participants to purchase $25 "Clean Special Fuels" license plates. You'll also need to know where you can travel. California's program is statewide while New York's is currently limited to the Long Island Expressway. (State House and Senate Transportation Committees are considering a bill to enact the measures statewide).