Ohio hybrid drivers get a discount from Farmers Insurance
Drivers in the buckeye state who own hybrids may want to shop around the next time their insurance comes up for renewal. The Farmers Insurance Group has announced that they will offer a 10 percent rate discount to drivers of hybrid and alternative fuel vehicles. The new discounts went into effect November 1, and affect new customers immediately and existing customers when they renew. Since insurance companies generally base their premiums on an assessment of the risk posed by the car and the driver, they must feel that hybrid drivers are more responsible in their driving habits as well as their purchase habits. So far the discount apparently only applies in Ohio.
[Source: The Auto Channel]
Reader Comments (Page 1 of 1)
Phil L. 1:04PM (11/03/2006)
This is just another example of outside entities trying to pick a winner (gasoline-hybrid technology, in this case) based on factors that don't include technical merit.
Insurance is (at its best) a risk-sharing mechanism. If hybrids prove themselves to offer lower risk in actual use, they should get lower premiums. If they don't (what does it cost to repair an accident-damaged hybrid vehicle if batteries or other hybrid components require replacement?), the cost should reflect real-life risk.
For green vehicles, let real performance and efficiency results stand on their own - and let's keep insurance companies (and the largest elephant in the room, governments) with their biased agendas out of it.
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Jimmy 3:52PM (11/03/2006)
Since hybrid owners tend to be older and wealthier than average they likely represent a lower risk.
Also, if you look at data from the Highway Loss Data Institute, the theft rates for hybrids are very, very low. The only cars less stolen than the Prius are Buicks. Cadillac Escalade is the most stolen (most desired?) vehicle.
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Phil L. 1:18PM (11/06/2006)
Fine. Then lower the rates for older, weathier individuals, whether they drive a hybrid or not.
And again, if some hybrid models show themselves to have low loss rates, lower the theft rates. But do the same thing to other vehicles with similar rates. By the way, if later on we discover that, for example, Prius models become theft targets for their expensive batteries, I'd expect insurance rates to reflect this.
My grief is an insurance company trying to create a green image by basing their rates on something besides real risk - and thereby hyping one technology (gas/hybrid drivetrains) over others without regard to factual basis.
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