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The G2 Insight (2010 to 2014) actually does have an electric-only drive mode that it uses at a certain throttle threshold if you're in a low engine load situation.
When it goes into EV mode there's no indication to tell you that it's done this, but you'll see that you're getting assist and at the same time the MPG graph is maxed out. The engine is still in gear and being spun by the electric motor but Honda put in some kind of mechanism to prevent the valves from pumping air so the losses from turning the ICE are way lower than if you tried to cut the fuel but provide assist in a similar fashion with a G1 (2000 to 2006) Insight. However the electric motor on the G2 is only 10 kW so you wouldn't be able to use it for a straight EV.
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