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Well, since you are in Cali, modding the Insight to run without the battery would probably be an instant emissions fail. You could swap a newer engine lawfully, but now you're into relatively high difficulty and expense compared to buying a clean used 2000 Civic HX or something.
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See my car's mod & maintenance thread and my electric bicycle's thread for ongoing projects. I will rebuild Black and Green over decades as parts die, until it becomes a different car of roughly the same shape and color. My minimum fuel economy goal is 55 mpg while averaging posted speed limits. I generally top 60 mpg. See also my Honda manual transmission specs thread.
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