Insurance Co. offers hybrid discount - GreenHybrid

Schwa · #1 (**permalink**) 10-15-2005, 09:49 AM

http://www.greencarcongress.com/2005...s_insuran.html
http://www.greencarcongress.com/2005...insuran_1.html

Quote:

On Monday, Farmers Insurance will announce that it will begin offering a discount to California auto insurance customers who own hybrid or alternative fuel vehicles.
The insurance company will become the first in the US to offer this type of discount.
The announcement will be made at Los Angeles City Hall, with several council members present.

Hopefully this trend will continue to spread. It's nice to see a corporation pitching in to do their part in encouraging FE vehicle ownership through incentives.

EricGo · #2 (**permalink**) 10-15-2005, 10:46 AM

Why CA only ?

ralph_dog · #3 (**permalink**) 10-15-2005, 11:59 AM

The only insurance "break" we get here in Taxachusetts is when they send someone to break your legs for not paying....

Costs over 2.5 grand to insure two cars in the 'burbs here and we are both low risk, a 2001 accord and 2005 HCH. Sheesh.... As soon as the hybrids get more popular, they will cost more to insure because those are the ones that will get stolen first for parts...

Schwa · #4 (**permalink**) 10-15-2005, 08:27 PM

Honda's low risk??? That's a good one. Around here Civics are the #1 most stolen vehicle.

bar10dah · #5 (**permalink**) 10-16-2005, 08:54 AM

Quote:

Originally Posted by ralph_dog

...and we are both low risk...

Quote:

Originally Posted by Schwa

Honda's low risk???

Catskillguy · #6 (**permalink**) 10-16-2005, 12:06 PM

I believe he meant he & his wife were low risk drivers./.. no or long ago accidents &/or points on their license

David Harville · #7 (**permalink**) 10-21-2005, 06:36 AM

Quote:

Originally Posted by EricGo

Why CA only ?

(Auto) Insurance laws are state-mandated. In most states, a car insurance company can't do anything (raise rates, lower rates, offer new discounts, do away with old discounts, etc.) without the state's approval.

Farmer's probably decided to test the discount in a state where they thought it would do *them* the most good -- they think they will get more profit for the premium they're giving up in California than if they did this in a less-green state.

By doing it in a state where there are probably lots of eligible vehicles, they'll also have more experience to judge whether or not to extend it to other states. If they offered it in a state with very few eligible cars, then the small number of vehicles getting the discount would not give them reliable data for future analysis.