250 dollars to fill up your gas tank? With the price of oil still on the rise, chances are that a full tank can soon cost you more than your monthly rent. Gas guzzlers in particular are not only hard on the pocketbook, but on the environment too. So it is no wonder that both consumers and automakers are searching for alternatives to the conventional vehicle. The potential benefits are multi-fold: less emissions, improved gas mileage and alternative fuel sources for the cars of the future.

Going green is no longer a choice, and automakers worldwide are reacting to this pressure. Many of them are already mass producing hybrid electric vehicles (HEVs). Modern HEVs combine a conventional gasoline-operated engine with an additional electric motor, achieving a better fuel economy (saving up to 50 percent of gasoline) than conventional vehicles do. Alone in 2008, some 15 new hybrid models will be launched on the market.

All reasons for Fireman's Fund to assume a pioneering role in addressing this growing interest in HEVs. The insurance company, based in Novato, California, has introduced a new vehicle replacement coverage for commercial fleets with a hybrid upgrade endorsement available, enabling business' fleets to "go green".

Commercial vehicles will be replaced with the most current make and model available, including similar equipment and options. There is no depreciation reduction, but rather the increased cost to replace with a new vehicle is covered.

In addition, Fireman’s Fund now offers an upgrade to green with a hybrid endorsement.  This 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 businesses that want to protect the value of their assets, reduce their energy costs, and protect the environment.

"If a policyholder's two-year-old pickup truck is stolen from his delivery fleet, or crushed by a fallen tree, he can replace the truck with a new one.  If he chooses the hybrid option, he can upgrade to a more environment-friendly hybrid model," said Bob Steele, product director, Commercial business. The decision to go green is about cost-savings too, according to Steele: "Many fleets are opting for hybrids and alternative fuel vehicles to reduce fuel costs and pollution."

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

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