Hybrid Sales Rise, But Tax Breaks Motivate Some More Than Fuel Savings

Economically and environmentally savvy drivers have set off a wave of hybrid car sales in Chicago and statewide. A recent study from hybridcars.com ranks Chicago as fifth on the list of top cities for hybrid sales. Illinois also occupies the fifth spot among the states ranked in the survey. This segment of car owners has grown significantly as fuel prices remain near all time highs and there continues to be a growing concern for environmental issues.

Recognizing the interest in hybrid vehicles, Travelers made a commitment to provide the right insurance solutions for this growing segment. The company was the first to offer an auto insurance discount of up to 10 percent² to hybrid drivers nationally when the trend of driving a hybrid started taking off in early 2006.

“It is clear that there is a growing segment of the population that is considering a hybrid vehicle and Travelers is committed to offering innovative products that meet the needs of today’s market trends,” said Lorie Kates, regional vice president, Travelers Personal Insurance. “In addition to saving at the pump, Illinois hybrid drivers can also save on their car insurance.”

Research also shows that high gas prices are not the only reason consumers are considering hybrid cars. According to the Polk Center for Automotive Studies, 70 percent of hybrid owners bought their cars to take advantage of tax breaks and because of high gas prices, 21 percent cited environmental concerns as the reason for buying a hybrid. The remaining nine percent of those surveyed say they bought hybrids because they are “futurists” – in support of the new technology and design of hybrid vehicles.