In our environmentally conscientious society, many people are searching for ways to cut their monthly expenses and help save our environment at the same time. I know, sounds like a tall order!

Electric and Hybrid cars seem to discuss these concerns. Although these cars were very expensive when they first came on the automotive scene some 20 years ago, car manufactures like Honda, Toyota and Chevrolet have gone to great lengths to make them much more affordable. Small & large fuel-efficient, electric and hybrid car are now being made by more manufacturers than ever. In fact; Chevrolet spent two million dollars during  the 2011 Super Bowl XXXXV to advertise their new, fully electric car “The Volt.” General Motors also has a number of other fuel-efficient vehicles.  Cadillac has the Escalade Hybrid and GMC has a number of Flex Fuel Models.

Electric and Hybrid cars have definitely become more popular in recent years. As fuel prices have greatly fluctuated and the question of “whether global warming is a reality,”climate change will affect the way law makers introduce legislation like “Cap & Tax” and other measure which they feel will help our environment.

People are buying electric & hybrid cars for a number of reasons. Some buy them so they can save money on gas. With few new U.S. sources of oil being drilled and no new refineries being built, other ways to make-do with what we have will need to be found. Others buy Electric & Hybrid cars and trucks to help protect the environment.  Unfortunately; recent studies have proved the materials which go into making these special vehicles is more harmful to the environment than traditional cars and trucks.  Many of these vehicles may also qualify for tax deductions or a total tax credit. Recently, I watched a cable news story where 15,000 people received a brand new $7500.00 electric golf cart courtesy of the United States Tax payer and a $7500.00 Electric Car Tax Credit. Really, I don’t think giving 7500 Country Club members a new Golf Cart is what the Obama administration had in mind, but that’s how it played out. Sadly; this is what happens when government involves themselves in whats best for the business community

While many of our American car manufactures are experimenting with building and marketing electric and hybrid family vehicles, the cost of Auto Insurance has seen relatively little discussion. The bottom line is, we just don’t know what the financial impact of electric cars and hybrid vehicles will be on our monthly Car Insurance Payment. These cars are neither more nor less safe than traditional combustion vehicles. The price of these cars is coming down so quickly, the cost of both comprehensive and collision coverage will probably also have little effect on your insurance premium. Unless an auto insurance carrier offers some type of “Green Discount” associated with the ownership of these cars, the rates will likely stay the same. Research may ultimately show that hybrid owners tend to be lower risk drivers, which would mean lower premiums because of fewer accidents. This does not necessarily mean all auto insurance companies like Allstate, State Farm and Progressive will buy into this idea, however.

If any “Green Discounts” are offered, they will be quickly taken away as more and more people buy Electric & Hybrid Vehicles. Although now these consumers may be categorized as sensible drivers who care about the environment, this will change as more and more people become electric & hybrid drivers and any so-called conscientious virtue discount will fade from the scene. Nevertheless, if you do own a hybrid now or are thinking of buying one, it’s very likely you will soon see more incentives to save money.

– Mike

7/11/11  To help increase lagging auto sales, General Motors is offering 12 months of car insurance to anyone wanting to buy a new GM car in Washington or Oregon. The auto insurance coverage with be offered at no cost by MetLife Auto & Home.  The insurance program is part of a market test which will run through Sept. 6.  The auto insurance offered will include both liability and physical damage.  This agent feels the program with be a failure.  Bottom line is, most people in the market for a new car already have their auto insurance coverage in place and will most likely end up as a credit on the purchase of an automobile. The reason GM is offering this in Oregon and Washington is; the price of auto insurance is so inexpensive.   – Mike