Travelers personal lines division announced today it willprovide a 10 percent discount on auto insurance to U.S. owners ofhybrid-powered vehicles.

Travelers, a member of St. Paul Travelers based in Hartford,Conn., said the discounts for owners of gas-electric hybrids, whichcombine a gasoline engine and an electric motor, will be put intoeffect next month.

In an announcement, Travelers said it believes it is the firstauto insurance company to implement a discount for hybrid owners ona nationwide basis.

Describing the rationale for the discount, Greg Toczydlowski,senior vice president of product management for Travelers, said theinsurer's research shows that hybrid owners tend to fall into thepreferred insured category. At Travelers, he continued, "lower riskdrivers are rewarded with lower premiums."

Mr. Toczydlowski also noted that hybrid vehicle sales have atleast doubled every year since the first car was offered in theUnited States in 1999 and stressed Travelers' intention to serve agrowing market.

No longer confined to those attracted to new technologies andthe environmentally conscious, hybrid ownership now attractsconsumers concerned with rising gas prices, Travelers said.

The insurer noted that other perks of hybrid ownership includetax breaks from government at all levels and incentives like accessto high occupancy vehicle lanes in some areas.

In the announcement, Travelers provided the following statisticsregarding hybrid vehicle ownership:

o As of August 2005, there were 328,157 registered hybridvehicles.

o Most hybrid vehicles were registered in California, followedby Virginia, Washington and Florida.

o Cities topping the list for hybrid ownership were Los Angeles,followed by San Francisco, Washington, D.C., and New York.

o According to company data, hybrid owners insured withTravelers are typically married, aged 41-60, with both gendersrepresented equally.