Insurance Incentives Are On Their Way for Hybrid Owners
Hybrid owners tend to be rather pleased with their vehicles. Whether the environmental benefits, or the great amount of money they save annually on gasoline, they do indeed have something to be happy about. They drive just like a regular car, but without the deleterious effect to the air or the owner’s pocketbook. However, insurance rates tend to be the same or higher than for a comparable non-hybrid model, a fact which is a thorn in the side of some hybrid owners.
However, this is starting to change. Some insurance companies have begun to give discounts to hybrid owners on their premiums. While this could merely be a ploy to get drivers to switch their allegiances to their agencies, it does end up saving the consumer money. Farmer's Insurance led the way in discounted rates for hybrid owners, offering a 5% break on premiums. This has made quite a splash, and doubtlessly led some to consider purchasing a hybrid themselves. This discount applies to hybrids as well as other alternative fuel vehicles.
California is leading the way nationally on incentives for hybrid owners. Farmer's Insurance is a California based company, and claims that their discount is given in the interest of benefiting the environment. The city of Los Angeles waives parking meter charges for hybrid vehicles, and the state of California has over 25,000 hybrids registered at present. Obviously this is a trend which will continue to build, with many choosing to take advantage of these incentives.
Currently, Farmer's Insurance is the only agency offering an incentive for hybrid drivers, the growing popularity of hybrids is bound to lead other companies to follow suit and offer their own. many insurance companies are waiting to see where the SUV market goes before beginning to offer incentives of their own. In fact, most of these companies only insure a small number of hybrids at present. However, once the statistics are in, it is a certainty that they will take after Farmer's Insurance and begin reaching out to the hybrid owning market.
Insurance companies have yet to evaluate this, but the hybrid buyer is likely a safer demographic than the average. Because of their concern with fuel economy, they may perhaps be a more cautious group in general and lest likely to file claims. This is something the companies will be watching the statistics on in the months and years to come.
If these trends are borne out by the statistics, you can count on premiums going down on insurance policies for hybrids. Conversely, if the opposite is true, rates will rise for hybrid drivers. However, since hybrids are a relatively new phenomenon, there is simply not enough data yet for the insurance companies to make adjustments at this time. Only time will tell what will ultimately happen with hybrids and insurance rates.
California drivers will no doubt be getting in on the incentives offered by Los Angeles and by Farmer's Insurance. The incentives seem like a fitting perk for driving an environmentally friendly vehicle, but are unlikely to be the primary cause of a hybrid purchase. But with the combination of free parking, breaks on insurance, breaks on taxes and incentives offered by employers for the purchase of hybrid vehicles, it is easy to see how someone leaning towards a hybrid may be swayed.
All of the incentives now offered are certainly tempting.
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