AutoblogGreen

If Insurance Companies could afford to give discounts for so called "GREEN" vehicles, that simply means they are overcharging everyone ELSE inthe country to make up for it. There is no way in HELL they would ever lose a penny of insurance premiums. It sounds good, but it's not true. They are just overcharging the rest of us to offer this 'discount' to others. Another trick they play on us with smoke and mirrors. Gawd I hate insurance companies.

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Joe,

In the US, the insurance industry is one of the most heavily regulated industries, and rightfully so. Indeed, insurance companies are required to file the rates they charge with the state insurance commissioner and in many states they have to await approval before they can implement their use. If you don't like your rates, don't just complain, contact your commissioner.

Frankly, I think that this is a particularly novel concept from a risk management standpoint, and I certainly hope that insurance companies expand these kinds of of programs, and continue to reward green behavior.

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As a former insurance agent, IMNSHO, the truth is somewhere in between the picture painted by Hamm and Joe.

Yes, the insurance industry is heavily regulated -- mostly by the state governments. Because of the source of the regulation, it is especially vulnerable to political manipulation and corruption. Regulation is not all it's cracked up to be; next Spring, I expect to testify in court against an insurance company using fraudulent sales tactics that I reported over 3 years ago, in a case that is finally coming to trial -- unless the company "settles out of court". With the enormous amounts of money at stake, I expect either an out-of-court settlement or more delays. I also expect to suffer personally for my whistle-blowing, although I hope that the damage will be limited by the fact that I am no longer in that business.

Even aside from that sort of thing, the insurance industry is NOT going to do anything that would hurt its profits, so I smell some subsidies behind any 'green' discounts. Those subsidies ultimately have to come from one of two sources (maybe both): Your taxes, or higher rates for other policyholders. Insurance is a zero-sum game, because it produces absolutely nothing.

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With all these great incentives hybrids will be very popular in the near future.

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