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Discount Hybrid Car Insurance- Greenwashing?
Hybrid vehicles are known for saving. Saving the environment, saving gas, but did you also know that you can save money on car insurance by purchasing a hybrid vehicle? These new plans offer a hybrid car discount for drivers and policy owners of hybrid vehicles
In over 40 states, Travelers Insurance offers discounted rates to drivers who purchase hybrid vehicles. Insured drivers can receive a 10% discount on their car insurance just by purchasing a hybrid vehicle. This program started in 2006 as a reward to those concerned with the environment and Travelers Insurance was the first nationwide insurance company to offer a hybrid car discount. The savings of 10% off the annual car insurance premium is a considerable savings.
According to the Travelers website regarding the hybrid car discount, “Our preliminary research indicates that hybrid owners tend to fall into the preferred insured category, and at Travelers, lower risk drivers are rewarded with lower premiums,” said Greg Toczydlowski, senior vice president of product management for Travelers Personal Insurance. “And considering the growth potential of the hybrid marketplace, we want to be well positioned to meet its needs.”
Travelers Insurance also has up-to-date information on their hybrid based website with up to date information regarding their hybrid car discount, http://www.hybridtravelers.com. This site provides information about federal and state programs designed around hybrid vehicles.
Some critics of hybrid vehicle insurance and hybrid car discounts believe that such discounts are purely a timely marketing ploy. Right now being green is “in” and thus companies from all product lines are trying to jump on the green bandwagon.
Skeptics of these hybrid car discount programs claim they are developed due to the characteristics of the driver, and that hybrid drivers typically are older, more conservative drivers. Travelers Insurance addresses these concerns on their website. “Our preliminary research indicates that hybrid owners tend to fall into the preferred insured category, and at Travelers, lower risk drivers are rewarded with lower premiums,” said Toczydlowski. “And considering the growth potential of the hybrid marketplace, we want to be well positioned to meet its needs.”
Travelers Insurance is not the only company offering the 10% hybrid car discount to hybrid vehicle drivers. Farmer’s Insurance Group of Companies offers Kansas residents who are owners of hybrid vehicles the same 10% discount.
Additional companies like State Farm have not jumped onto the bandwagon of offering hybrid car discounts to hybrid owners. The theory behind the lack of discounts is due to the cost of repairing hybrids in collisions and the expense covering the risks of accidents in the electrical components. However, if the driver is already in the preferred category as many hybrid drivers already are, they will automatically be given a priority premium rate.
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