Posted on 13 Aug 2009
Fireman's Fund Insurance Company announced it is the first to introduce hybrid upgrade auto insurance, enabling car owners to “go green.” In addition, new vehicle replacement coverage is available – insuring the full replacement cost of vehicles that are total losses for up to their first three model years (option available for five model years).
The hybrid auto upgrade enables policyholders to upgrade to a hybrid model (or its equivalent) during the first three model-years in the event of a total loss. This is an attractive choice for those car owners who want to protect the value of their assets, reduce their energy costs, and protect the environment.
Ninety percent of U.S. adults are open to choosing a hybrid if they were in the market for a new vehicle, according to the Johnson Controls survey conducted by Harris Interactive.
“Many car owners are opting for hybrids and alternative fuel vehicles to reduce fuel costs and pollution,” said Don Soss, vice president of Personal Insurance.
Most auto insurance policies pay “actual cash value” (cost of the vehicle when purchased new minus depreciation) if an auto is damaged beyond repair or stolen. This doesn’t account for the extra cost you would have to pay to purchase a new vehicle, often costing thousands of dollars more.
Fireman’s Fund differentiates by offering full replacement coverage, including increased cost to replace, with a new vehicle.
Vehicles will be replaced with the most current make and model available, including similar equipment and options. There is no depreciation reduction, but rather the increased cost to replace with a new vehicle is covered. These optional enhancements to the Prestige Auto® Premier policy are now available in six states: AZ, CO, CT, IL, MD, and TX.