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Farmers Insurance Extends Hybrid and Alt-Fuel Discounts to 37 Additional States
5 December 2006
Farmer Group of Companies is expanding its discount to its auto insurance customers who own a hybrid or alternative fuel vehicle to 37 additional states.
Farmers was first in the country to offer the hybrid vehicle discount beginning in California in October 2005, followed by Kansas (Sep 2006) and Ohio (November 2006).
The discount is up to 10% (currently 5% in California) and applies to all major auto insurance coverages—bodily injury and property damage liability, uninsured/underinsured motorist coverage, medical payments, comprehensive and collision coverages.
We recognize that with high gasoline costs, many of Farmers’ customers are opting to drive environmentally friendly hybrid automobiles like the number-one selling hybrid in America, the Toyota Prius. We applaud Toyota and our customers who are concerned about the environment and are happy to offer them a discount on their auto insurance.
Our research shows that drivers of hybrid vehicles are more mature, drive fewer miles and are more environmentally conscious than the average driver.
—Bill Martin, vice president of auto insurance for the Farmers Insurance Group of Companies
The discount is available for all Farmers’ customers who own a hybrid or alternative fuel vehicle. All new business customers will receive the discount as of the new business day of their insurance policy going into force, and existing customers will receive the discount upon their next renewal date.
The Farmers Insurance Group of companies is the US’ third-largest personal lines property and casualty insurance group. Headquartered in Los Angeles, it does business in 41 states. and doing business in 41 states.
December 5, 2006 in Hybrids, Policy | Permalink | Comments (12) | TrackBack (0)
Comments
Posted by: Scott | December 05, 2006 at 10:02 AM
More likely they are 15% less likely to be in a wreck :P
--Ash
Posted by: Ash | December 05, 2006 at 11:39 AM
_As well as less likely to speed, thus auto accidents and incidents that do happen tend to have less kinetic energy involved. Hence, fewer deaths, less severe injuries, and lower property damage numbers are expected.
_There is the small caveat, since most hybrids currently are B and C segment cars, and will likely suffer more physical damage in a crash vs heavier vehicles. That will change as more hybrid SUVs, trucks, crossovers, and minivans come online.
Posted by: allen_Z | December 05, 2006 at 12:24 PM
Woohoo!
I have Farmers and a Prius.
I read this and then walked down the hall where my agent works.
A few minutes later he confirmed that I'll be getting a discount starting at the next renewal!
Posted by: darwin | December 05, 2006 at 01:37 PM
I was informed of a prius hybrid discount from American Family Insurance when I purchased in May '06 - the demographics must be pretty clear.. don't tell them that staring down the consumption screen might be an obsessive distractive behavior..
Posted by: fyi CO2 | December 05, 2006 at 02:49 PM
The alt-fuel inclusion dilutes their position, however.
Posted by: fyi CO2 | December 05, 2006 at 02:50 PM
This might improve the economics of hybrids. Fuel prices currently dominate the discussion of how long it takes to for the hybrids' price premium to pay back in the form of reduced operational costs. Saving $100 to $300 on your insurance premium, will likely hasten the break-even date. This will definitely make hybrids and alternative fuel vehicles (biodiesel clean diesels?) more attractive.
_I wonder if other insurance companies will follow suit.
Posted by: allen_Z | December 05, 2006 at 04:21 PM
Great news!
Hopefully the other companies will follow soon
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Our research shows that drivers of hybrid vehicles are more mature, drive fewer miles and are more environmentally conscious than the average driver.
None of these seem like a reason for an insurance company to offer a reduced rate. People driving hybrids must cost the company at least 10% less. Perhaps "mature" is some sort of code for this, or maybe driving fewer miles is the main reason.