Insurer takes bet on hybrid owners

Travelers, 4th largest US property and casualty insurer, gives 10 percent discount to hybrid owners.

Are tree-hugging, middle-age owners of hybrid vehicles a better risk than drivers of ordinary autos? St. Paul Travelers Companies Inc. is betting they are.

Travelers, the fourth largest property and casualty insurer in the United States, is giving a 10 percent discount on auto insurance to hybrid owners beginning in February. It is the first auto insurer to implement such a discount nationwide.
“Call it ‘The Gas Station Revelation,”‘ said Greg Toczydlowski, the Travelers executive launching the program. The idea came to him after he watched a hybrid zip in and out of a station while he was pumping gas into his SUV.

Hybrids have been popular among the environmentally conscious and those attracted to new technologies. While data is still sparse on how hybrid owners compare to other drivers, Travelers’ research indicates they fall into a low-risk category historically rewarded with cheaper premiums.

Reuters