Fireman’s Fund Launches Green Auto Upgrade Coverage

August 12, 2009

Fireman’s Fund Insurance Company introduced a hybrid upgrade auto insurance product that enables 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, the first of its kind according to the insurer, 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, Fireman’s Fund says.

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. The new Fireman’s Fund product 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, the insurer says. 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: Arizona, Colorado, Connecticut, Illinois, Maryland, and Texas.

Both of these coverage enhancements apply without a deductible.

The Prestige Auto Premier policy also includes:

* Rental reimbursement coverage up to $10,000 in the event of a loss;
* Injury to pets due to an automobile accident up to $5,000; and
* Handicap vehicle retrofit if permanently disabled in an auto accident up to $10,000.

Fireman’s Fund created the first green insurance for commercial buildings in 2006 and has continued to expand its green products and services across all lines of business including homeowner’s and auto, real estate, hotels, restaurants, manufacturers and risk services.

Source: Fireman’s Fund,

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