Liberty Mutual "alternative fuel" discount doesn't include Model 3 (or any EVs)

[MrBoylan]

So this is a head-scratcher. We have two cars insured by Liberty Mutual currently: a 2005 Toyota Highlander Hybrid and a 2018 Model 3 Performance. I checked the policy details last week and I saw that the Highlander qualifies for the "alternative fuel" discount which the Model 3 does not. I reached out to my agent and he got a reply from support which said:

"We appreciate you taking the time to express your concerns. The Tesla doesn’t qualify for the Alternative Fuel discount since it is an electric vehicle."

So a car that uses gas plus electric is "alternative fuel" but a car that uses only electricity is not? Bizarre... Has anyone noticed anything similar with other carriers?

 

[SMAlset]

Didn't Tesla work out some insurance promotion with them last year and then dumped them when owners said their quotes were way higher than other insurers? if so, maybe there's a reason they won't cover Teslas .

But seriously if you are not using gasoline to power your vehicle, then whatever you do use is an alternative fuel. How does your state consider BEVs for any clean air rebates? EV owners with Liberty Mutual should be fighting this. You deserve the discount. That is so bogus on the part of Liberty Mutual. Wonder if Teslarati/Electrek/InsideEvs/CleanTechnica would like to do a spotlight story on Liberty Mutual?

 

[BluestarE3]

I wonder if diesel qualifies for a discount as an "alternative fuel" in their books?

 

[mswlogo]

Stick a small generator in the trunk and call them back. Idiots.

Try getting a price from progressive. They seem to be consistently low for lots of folks.

 

[North75]

My question is why would an insurance company even offer a discount for "Alternative fuel"?
What could that possibly do with the cost to ensure a vehicle?

 

[BluestarE3]

My question is why would an insurance company even offer a discount for "Alternative fuel"?
What could that possibly do with the cost to ensure a vehicle?

I'd think a hybrid vehicle should be more expensive to insure since it's more complex with more bits that can potentially go wrong that a pure ICE or BEV.

 

[nicholb]

Ask them to send you their Alternative fuel definition. They have to have a formal definition of the term as it applies to the discount.

 

[Matan.Mazursky]

I bet their database has issues, though that's inexcusable for such a large company.
How much of a discount do you expect for this? Why would insurance give a lower rate because of alternative fuel?

 

[mswlogo]

My question is why would an insurance company even offer a discount for "Alternative fuel"?
What could that possibly do with the cost to ensure a vehicle?

That’s a good point.

Ahh, maybe that is the key.

Hybrids are often pretty slow tame vehicles (think Prius which can’t get out of its own way). Where as every Tesla is general a pretty spirited vehicle.

So the discount is for slow underpowered vehicles. Not alternative fuel.

Slower cars will tend to have less accidents. That’s a fact jack.

 

[BluestarE3]

That’s a good point.

Ahh, maybe that is the key.

Hybrids are often pretty slow tame vehicles (think Prius which can’t get out of its own way). Where as every Tesla is general a pretty spirited vehicle.

So the discount is for slow underpowered vehicles. Not alternative fuel.

Slower cars will tend to have less accidents. That’s a fact jack.

I dunno. I see a lot of jackass Prius drivers on the road. My theory is that they are trying to overcompensate for the lackluster performance of their cars and dispelling the image of "Prius drivers" by being overly aggressive. This is coming from a former 2001 Prius owner.

 

[MP3Mike]

My question is why would an insurance company even offer a discount for "Alternative fuel"?
What could that possibly do with the cost to ensure a vehicle?

Probably the same reason that some credit union offers lower rates for EVs to promote adoption of them. You know, like for the environment...

 

[MrBoylan]

Ask them to send you their Alternative fuel definition. They have to have a formal definition of the term as it applies to the discount.

Their reply to this question was "I apologize as this information is proprietary and fully determined by our underwriting department. This department does not handle customer requests as well."

Meanwhile, in another thread, a Liberty Mutual customer said he *IS* getting the Alternative Energy Discount on his Model 3 insurance policy. Curiouser and curiouser...

 

[brobinson]

I have it on my policy.

*edit: just to note, I didn't ask for this to be added. The agent did it for me when the policy was written.

 

[jsmay311]

Car Insurance Discounts – Start Saving | Liberty Mutual

"Alternative Energy Discount
Friends of the environment are friends of ours. You'll get a discount if your vehicle is a hybrid or electric*."

*Discounts and savings are available where state laws and regulations allow, and may vary by state. Certain discounts apply to specific coverages only. To the extent permitted by law, applicants are individually underwritten; not all applicants may qualify."

(emphasis added)

 

[MrBoylan]

Car Insurance Discounts – Start Saving | Liberty Mutual

"Alternative Energy Discount
Friends of the environment are friends of ours. You'll get a discount if your vehicle is a hybrid or electric*."

*Discounts and savings are available where state laws and regulations allow, and may vary by state. Certain discounts apply to specific coverages only. To the extent permitted by law, applicants are individually underwritten; not all applicants may qualify."

(emphasis added)

Thanks. If ever there were a smoking gun, this would be it. I will reply with a link to their own web site, in case they have any further questions.

-CB

 

[MrBoylan]

I have it on my policy.

*edit: just to note, I didn't ask for this to be added. The agent did it for me when the policy was written.

Thanks. This is what mine says, hence the confusion...

 

[brobinson]

Well *sugar*, now I need to find out how to get all of those other discounts

 

[MrBoylan]

Well *sugar*, now I need to find out how to get all of those other discounts

Feel free to send a screen shot to your Liberty Mutual rep. That's what I'm doing.

And BTW, I just priced out progressive for a similar policy and Liberty's overall rates do seem to a bit higher (even with these discounts), but not excessively so. NYC has some of the highest insurance premiums in the nation, so I guess I'll just have to move if I want the best deal.

 

[brobinson]

Feel free to send a screen shot to your Liberty Mutual rep. That's what I'm doing.

And BTW, I just priced out progressive for a similar policy and Liberty's overall rates do seem to a bit higher (even with these discounts), but not excessively so. NYC has some of the highest insurance premiums in the nation, so I guess I'll just have to move if I want the best deal.

I'm only paying $101/mo for both cars, so I can't really complain. I also got a huge multi policy discount for including my home. I'll shop around once I feel like I'm getting a bad deal. Otherwise its not worth the hassle.

 

[MrBoylan]

Wonder if Teslarati/Electrek/InsideEvs/CleanTechnica would like to do a spotlight story on Liberty Mutual?

Did I forget to mention I write for CleanTechnica?

But this looks like it is just some kind of error in their system (and lack of understanding from their support folks). Some LM customers are getting the discount. I just don't happen to be one of them. I have enough info to challenge it though (including their own web site) so I'm optimistic that they'll make good.