A recent report has revealed that hybrid cars frequently receive discounts on their insurance policies, a move that not only save the environment but also results in saving for both the insurer and the policy holder.
That’s why Farmers Insurance Group created a 10% discount for hybrid cars. Officials at Farmers felt like it was the responsible thing to do. At first, the group only offered the discount in California, which was home to nearly 25% of all hybrid cars in the U.S. After studying the results, they began to expand the discount to each of the states in which Farmers operates.
Today, Farmers provides auto insurance coverage for nearly 100,000 hybrid cars across the US, which equals nearly 10% of all hybrid cars that have been sold in the last ten years.
Providing coverage for hybrids that have been involved in accidents can be up to 13% higher than when dealing with conventional gasoline-powered cars. However, research shows that hybrid car drivers are living up to the reputation they have as responsible drivers, so even though repair costs are higher, there are less repairs to deal with. So, offering discounts to hybrid drivers also proves to be beneficial on the insurer’s end, as well.
Research also shows that those who own hybrids drive more than those who own other types of cars. But the question is whether these were already frequent drivers or if they started driving more once they bought a hybrid.
Officials at Farmers suggest that it would be beneficial to both drivers and insurance providers if more drivers switched to hybrid cars. They are also looking into a green insurance policy for homeowners, which will help provide homeowners with rebuilding costs for green materials.