The offering will allow owners to upgrade to a hybrid model during the first three model-years in the event of a total loss. The company wouldn't estimate when the policy will be available in California.
A Johnson Controls survey conducted by Harris Interactive confirms the market niche available to insurers such as Fireman's Fund: According to the survey, 90% of American adults are open to choosing a hybrid if they were buying a new vehicle.
According to Fireman's Fund, the upgraded policies they cover the extra cost needed to buy a new vehicle, a cost they say is not covered by auto insurance companies who pay actual cash value for damaged cars, making the new policies unique.
New vehicle replacement coverage will also be available, and will insure the full replacement cost of vehicles that are total losses for up to three years, with an option to extend coverage to five years.