Travelers personal lines division announced today it will provide a 10 percent discount on auto insurance to U.S. owners of hybrid-powered vehicles.
Travelers, a member of St. Paul Travelers based in Hartford, Conn., said the discounts for owners of gas-electric hybrids, which combine a gasoline engine and an electric motor, will be put into effect next month.
In an announcement, Travelers said it believes it is the first auto insurance company to implement a discount for hybrid owners on a nationwide basis.
Describing the rationale for the discount, Greg Toczydlowski, senior vice president of product management for Travelers, said the insurer's research shows that hybrid owners tend to fall into the preferred insured category. At Travelers, he continued, "lower risk drivers are rewarded with lower premiums."
Mr. Toczydlowski also noted that hybrid vehicle sales have at least doubled every year since the first car was offered in the United States in 1999 and stressed Travelers' intention to serve a growing market.
No longer confined to those attracted to new technologies and the environmentally conscious, hybrid ownership now attracts consumers concerned with rising gas prices, Travelers said.
The insurer noted that other perks of hybrid ownership include tax breaks from government at all levels and incentives like access to high occupancy vehicle lanes in some areas.
In the announcement, Travelers provided the following statistics regarding hybrid vehicle ownership:
o As of August 2005, there were 328,157 registered hybrid vehicles.
o Most hybrid vehicles were registered in California, followed by Virginia, Washington and Florida.
o Cities topping the list for hybrid ownership were Los Angeles, followed by San Francisco, Washington, D.C., and New York.
o According to company data, hybrid owners insured with Travelers are typically married, aged 41-60, with both genders represented equally.
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