Hybrid Cars Capture the Fancy of Some Drivers

A Mercury Insurance Co. marketing representative waxes enthusiastic about her Honda Civic, which shouldn't come as a great shock because, after all, it is a popular model, but Debbie Perea's car is quite different than most you see on America's roadways. Perea proudly drives a hybrid, a car that uses a combination of gas and electric power.

"I love it," Perea says about her 2003 Honda Civic Hybrid. "It's a great little car, and it definitely saves me money on my daily commute to and from work. I drive 20 miles each way, five days a week, and I spend $20 a week on gas. I drop about $50 every time I fill the tank on my Sequoia (Toyota SUV)."

Hybrid tradeoffs
However, there are tradeoffs with hybrids. Perea says her Hybrid doesn't take off quick, say, when entering freeway traffic. "But it gets up to the speed of freeway traffic pretty quickly. I don't mind giving up a little bit on a car's pep when I'm saving as much as I am at the gas pump. Gas prices have been going up and up, and there's no end in sight. So, I think that I'm coming out ahead by driving a hybrid. I don't see that many hybrids around when I'm driving, but I'm sure there will be a lot more out there on the roadways very soon."

Hybrids and Auto Insurance Rates
In terms of car insurance, Perea says she's paying about the same price for comp/collision protection on her hybrid as she is on her 1998 Honda Civic.

Perea's boss, Bruce Norman, said, "obviously we insure at least a few hybrids, including my secretary's, but so far there are relatively few of her type of car out there on the road today. I know Debbie sure likes her car. The numbers out there could increase in time. We'll know more in a few years in terms of how they gain in popularity and their insurance claims experience, but it's a little early at this point to give any hard and fast underwriting or claims opinions," said Norman, senior vice president of marketing, at Mercury's corporate headquarters in Brea, Calif.

Kim Hazelbaker, senior vice president of the Insurance Institute for Highway Safety, in Arlington, Va., said only the Toyota Prius and Honda Civic hybrids have enough data for IIHS to rank them in terms of losses, and both came out in 2004. "Right now, we would have to say they're a little better than other vehicles of similar size and type. People are willing to pay extra for the hybrid, so they might be a different breed of driver than those who are buying a gas-driven Civic that is less expensive," Hazelbaker said.

"That means that you've got a very select group buying hybrids," added Hazelbaker. "They might be driving differently than the average person and driving them in different settings, at different times and in different areas. These people are into fuel economy and may be more safety conscious than owners of more conventional cars. They're not going to be burning rubber down the streets of their neighborhood and driving aggressively on freeways. Therefore, they would presumably be better insurance risks than those who drive aggressively on America's roadways."

"I definitely believe that high technology vehicles including hybrids will change the landscape of the insurance market," said John Eager, senior director of claims services at the Property Casualty Insurers Association of America, in Des Plaines, Ill. "We're expecting to see a diminished frequency of claims as high technology vehicles including hybrids continues to improve over time."

Eager cited another impact of hybrid vehicles and other technology. "I anticipate an increase in severity of physical damage claims. When a hybrid car gets into an accident or any car with high technology for that matter, you're going to have a greater chance of a total loss. The repair of hybrids is something that our organization and others in the industry are looking at."

A spokeswoman for the Insurance Information Institute offered no bold predictions on auto insurance premiums for hybrid owners. "It is just too early to tell what effect these hybrid vehicles will have on insurance premiums," says Carolyn Gorman. "If in the future, the loss history shows fewer claims, then premiums will be lower for these cars. If the opposite is true, then premiums would be higher."

Three Life Events That Can Greatly Affect Your Auto Insurance Rate

Getting married, becoming divorced or widowed, or embarking upon your golden years; all of these events can have a huge impact on our lives, but we bet you never thought that these changes could also influence your auto insurance rate. It`s true! And it just might have you reevaluating your auto insurance policy.

I Do
Getting married is a very exciting time in one`s life. It`s a new beginning, the merging of assets and the chance to receive a bigger discount on your auto insurance rate. That`s right: marriage can actually save you money!

Many insurance companies offer discounts for multiple cars. So by having all your automobiles under one policy, you can save money and cut down on multiple bills and policies you may have. During this time you may also want to shop around and compare the quotes and policies of other insurance companies. This will help you find the best rate and coverage for you and your new spouse.

Widowed or divorced
Being recently divorced or widowed is a very difficult and upsetting time in one`s life. Unfortunately, it is also a time when you need to reevaluate your auto insurance coverage. Depending on your situation, you may be the only full-time driver in your household, which means your rate may go up. Even worse, it may go up higher than you can afford.

However, there are things you can do to try and keep your costs down. For starters, shop around. Although your current insurance provider may have given you the best rate while you were married, that doesn`t always mean they will be able to do the same when you are single. Also, take a good look at your plan. What you once needed as a married couple may no longer apply as a single person.

With the loss of an extra income, your budget might also become tighter. If this is the case you might want to consider looking into raising your deductible or eliminating your comprehensive and collision coverage. Even though you may not want to, these changes could make a considerable difference in your auto insurance rate.

Retirement
Retirement is a perfect time to travel, spend time with loved ones and review your auto insurance coverage. Since you no longer need to drive to and from work each day, your annual mileage will more than likely drop, which can mean a nice rate decrease for you! Plus, you may also discover that you no longer need multiple cars and that one car suits you just fine. By downsizing to one car you will not only save on gas, but you will also help reduce your auto insurance rate.

Another way veteran drivers can save on auto insurance is by participating in AARP`s Mature Driving Course or AAA`s Mature Operator Program. Many insurance companies provide discounts to seasoned drivers who participate in these refresher courses. So it might be worth a try!

It never hurts to shop around
No matter what change you may be going through in life, it never hurts to do a little comparison-shopping. To help expedite your investigation, logon to Insurance.com`s auto comparison module. Here, you will be able to compare the rates of up to 12 insurance providers, helping you save time and money on your auto insurance

Hybrid Vehicle Ownership Costs

Thinking about purchasing a hybrid to save on gas? What if we told you that owning a hybrid could also decrease your auto insurance rate?

That`s right, starting February 2006; at least one of Insurance.com`s auto insurance partners will be offering hybrid car owners a 10% discount on auto insurance rates. According to preliminary research, hybrid owners tend to fall into a preferred insured category, associating hybrid owners as low risk drivers and therefore warranting lower premiums. Hybrid vehicle sales have at least doubled every year since the first car was offered in 1999. This trend shows no signs of slowing. Auto insurance providers are starting to reach out to serve this growing market group with innovative products to meet the changing needs of their customers.

In the past, hybrid ownership was confined to those attracted to new technologies and the environmentally conscious. However, with the aftermath of hurricane Katrina, where gas prices rose as high as three dollars a gallon, the number of hybrids on the roads has increased. Currently there are over 328,000 registered hybrid vehicles on the road, mostly residing in California, Virginia, Washington, Florida, Los Angeles, San Francisco, Washington, D.C. and New York. And who exactly is driving these money saving automobiles? The hybrid owner profile is married men and women ranging from the age of 41 to 60.

Hybrid tax breaks
In addition to saving money on gas and auto insurance rates, new owners will also benefit from a new federal tax break established for 2006. These tax breaks will come in the form of tax credits, ranging from $3,150 for buyers of the Toyota Prius to $250 for Chevrolet`s Silverado pickup truck, according the American Council for an Energy-Efficient Economy (ACEEE.)

To help you compare the savings of each hybrid model, the ACEEE has developed a chart displaying the make, model and estimated tax credit per car.

Current Models
Make	Model	Estimated Tax Credit
Ford	Escape Hybrid (2wd)	$2,600
Ford	Escape Hybrid (4wd)	$1,950
Honda	Accord Hybrid	$650
Honda	Civic Hybrid (auto)	$2,100
Honda	Civic Hybrid (manual)	$1.700
Honda	Insight (auto)	$2,600
Lexus	RX400h	$2,200
Mercury	Mariner Hybrid	$1,950
Toyota	Highlander Hybrid (2wd)	$2,600
Toyota	Highlander Hybrid (4wd)	$2,200
Toyota	Prius	$3,150

Upcoming Models (based on estimated specs)
Make	Model	Estimated Tax Credit
Chevrolet/GMC	Silverado/Sierra	$250
Lexus	GS450h	$1,300
Nissan	Altima	$1,300
Toyota	Camry	$1,300

*These tax credits are estimated. The exact hybrid tax credit amounts will be determined by the I.R.S.

This tax break won`t last forever. The new tax credit sets a limit of 60,000 hybrids per carmaker. After the manufacturer has hit this mark (based on the quantity of hybrid vehicles manufactured and delivered to dealerships, rather than hybrids actually sold), the credit will begin to phase out over a 15-month period, reducing the chance for those who buy late in the year to receive the same breaks as their fellow hybrid owners received in early 06.

And as always, there are some basic rules that must be met in order to qualify for this money saving tax credit:

• Purchase and take delivery of a qualifying vehicle on or after Jan. 1, 2006.
• Purchase the vehicle new, not used.
• Purchase the vehicle with the intention of using it, not re-selling it.

So do all these incentives and discounts really make a difference to prospective car shoppers? You bet! Hybrid dealerships are happily reporting long waiting lists and fast sales. According to one Honda salesman in Gardena, California, "If the car is available, they get it as soon as possible. " Sounds like you have to be lucky to get your hands on one of these money saving machines! If you do, Insurance.com`s auto quote comparison tool can help you leverage new hybrid discounts as they become available by comparing auto insurance rates from up to 12 insurance provider partners.