Figure Hybrid Insurance Discounts into Overall Cost of Ownership

Statistics compiled earlier in 2009 suggest that 62% of consumers contemplating a car purchase either consider or are committed to buying some kind of hybrid or alternative fuel vehicle. Confusion exists, however, on the question of the expenses involved in insuring a hybrid vehicle. In calculating the actual cost of choosing a hybrid, several factors come into play.

Insurance risk profiles have now been updated to recognize the fact that hybrid drivers are more environmentally conscious and tend to drive less. Therefore, the assumption is that they are safer drivers. On the other hand, there is the wisdom that hybrids require specialized parts and are more difficult and expensive to repair, thus making for more costly insurance settlements. There is truth to both perceptions, but regardless, Farmers Insurance Group of Companies took the lead in October 2005 when they began offering 5% discounts to hybrid drivers in California. Now, discounts of roughly 10% for hybrids are more or less industry standard, although consumers still may have to go after those savings proactively.

In negotiating coverage for a hybrid, all the conventional automotive insurance discounts can still be used, like those available for anti-theft devices or for an exceptionally clean driving record. But in considering the real cost of ownership, drivers should also consider available tax credits.

Between February 17, 2009 and January 1, 2010 new car buyers can deduct their state and local sales and excise taxes up to a $49,500 limit. The value of this deduction will, of course, vary from state to state, but buyers will still want to avail themselves of the deduction while it is available. Additionally, the “cash for clunkers” Car Allowance Rebate System discounts, ranging from $3,500 to $4,500 will be available through roughly November 1. Since hybrids are sure to meet the program’s mileage improvement requirements, this is another major potential savings. Finally, there is an actual Hybrid Vehicle Credit that can take as much as $3,000 off federal tax returns, and a $4,000 federal credit for plug-in hybrids.

Additionally, hybrid drivers are currently being rewarded by some hotel chains that offer lower room rates to customers who drive or rent a hybrid and in some parts of the country, hybrid drivers get free or discounted parking in city and county lots. So, given the current climate of dealer discounts, federal deductions and discounts available, and popular rewards for hybrid drivers, the accrued savings may take so much of the sting out of the initial purchase, that insurance coverage automatically becomes more affordable.

Drivers who play their cards right and go after all the traditional automotive insurance discounts in addition to the roughly standard 10% hybrid discount should find themselves well-placed for low premiums. The important points are to be prepared to negotiate, to comparison shop, and to figure insurance rates into the overall cost of driving the vehicle. In the case of hybrids, other savings and discounts will likely outweigh insurance costs in the first year to two years of driving.

Oncars.com’s Sweet Model S Video Preview

OnCars.com has produced a very informative and stylish video preview of the Tesla Model S. It is split into three parts: Design, Pure Electric, and Showtime.

Part 1: Design

Franz Von Holzhouzen, Chief Designer of the Model S Project, and Elon Musk, CEO of Tesla Motors, provide an in-depth description of how the electric drive train allows for unique design opportunities. I was unaware that the battery pack flat between the wheelbase this time. The Tesla Roadster’s is a vertical box located in the rear portion of the car. Also, the Model S has many hidden design elements that reduce the drag coefficient, like the retractible door handles, flat underbody, and air diffusers.

Part 2: Pure Electric

Elon and Franz emphasize the importance of keeping the Model S purely electric as apposed to creating a hybrid sedan ala the Fisker Karma. With a 300 mile range, the Tesla Model S should have no trouble being a daily driver, and will hopefully extinguish any doubt in the minds of those who don’t believe electric cars are fully capable vehicles.

Part 3: Showtime

This covers Elon’s appearance on Letterman and reactions from New York City.

Tesla Motors to Receive $465 Million Loan from the Government

From: OnCars.com

DoE giving boost to start-up electric car company

The DoE loan is reported to be $465m. Added to the $50m invested last month by Daimler plus the debt and equity already invested in the company, Tesla now sports a $700m capital war chest. Tesla plans to use $365m of the DoE monies to bring the Model S into production with the remainder going to customer power train development.

The sticker on the Model S should come in around $50k, or roughly half the price of the groundbreaking Tesla Roadster which absorbed all upfront development costs for the sporty little electric car.

On the Fisker Karma Sunset

The Fisker Karma Sunset is not only a convertible adaptation of the 2011 Fisker Karma, but will also claim the honor of being called the world’s first hybrid convertible. The Sunset will have a folding hardtop, be capable of 0-60 in 5.8 seconds and have a 125 MPH top speed, all while being a serial hybrid that you can drive 40 miles gas free. The regular Karma will retail for $87,900; expect a healthy premium for the S. Since the Sunset will be a coupe, it will only feature two larger doors and the rear seat passengers will inevitably be more cramped. Fisker’s Karma Sunset concept was already named the 2009 Production Preview Vehicle of the Year.

Source:Jalopnik

The Press Release:

DETROIT, MI Jan 12, 2009: Fisker Automotive, the new American manufacturer
of premium green automobiles, unveiled the Fisker Karma S concept at the 2009
North American International Auto Show (NAIAS) today. The four-seat, plug-in
hybrid hardtop convertible furthers the company’s belief that driving style and
performance need not be compromised for environmental friendliness.

The open-air Fisker Karma S concept shares its aluminum spaceframe architecture
and clean Q-DRIVE® powertrain with the Fisker Karma sedan. Designed and
engineered by Quantum Technologies exclusively for Fisker Automotive, Q-DRIVE®
provides 50 emission-free miles on a single charge to its lithium-ion battery pack,
and up to 403hp from two electric motors. The power retractable hard top, a first
for Fisker, glides neatly into the trunk and a unique design language sets the Karma S
concept apart.

“Our objective is to create a singular design language and heritage around our state-
of-the-art Q-DRIVE® powertrain,” said Fisker Automotive, Inc. CEO Henrik Fisker.
“The Karma S is an extension of the Fisker Automotive product range of eco-
conscious automobiles and sets the tone for our future.“