Does esurance (by Allstate) Actually Save Money Driving Hybrid Claims Cars

A recent advertisement by esurance (by Allstate) claims that one of the reasons they are able to save you money on car insurance is because they have a fleet of Ford Fusion hybrid claims cars.

how does esurance save you money

I certainly commend esurance for being socially responsible in their use of hybrid vehicles to reduce their carbon footprint. Indeed it is a great thing and I don’t disagree with their statement that they will save close to 69,000 gallons of gas by 2017 with their fleet of hybrid vehicles.

However, I do take issue with their implication that hybrid vehicles actually result in a net savings that is passed passed on to consumers. As I explained in a previous article, there are few situations where it makes sense from a cost savings and personal finance point of view to buy a hybrid vehicle. The math simply doesn’t add up. So how does esurance’s costing savings claim stack up?

Here’s a screen shot from my hybrid fuel savings calculator I created for that article using the two vehicles.

According to esurance's claim that they save money driving a fleet of hybrid claims vehicles, the average hybrid car would need to be driven for 5 years (150,000 miles) to reach the break even mark.

According to esurance’s claim that they save money driving a fleet of hybrid claims vehicles, the average hybrid car would need to be driven for 5 years (150,000 miles) to reach the break even mark.

As you can see in the graphic above, the average esurance vehicle would need to be driven for 150,000 miles before you would get to the break even point when comparing a Ford Fusion S Hybrid versus a conventionally powered Ford Fusion S.

Having seen some of the older Progressive claims vehicles still on the road (10 year old Ford Escapes for example) and recognizing how many miles claims agents drive each year (insurance agents I’ve spoken with average at least 30,000 mile per year), it is very possible that esurance might actually see a slight cost savings by operating a fleet of hybrid vehicles. Whether or not these savings are actually passed on to consumers is hard to gauge.

I guess esurance consumers will have to wait at least 5 years to find out!

Just remember, switching to a hybrid vehicle is a very socially responsible decision to make. Just make sure you fully understand the financial implications of buying a hybrid vehicle and don’t by into the hype that you’ll ALWAYS save money when buying a hybrid vehicle.

For more information on hybrid vehicle cost savings (and a copy of my fuel savings mpg calculator) check out my article Vehicle Fuel Efficiency MPG Savings Calculator!

Too Much Debt?  Download our free Trees Full of Money Debt Snowball Calculator and see how quickly you can pay off your debt.

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