Eco car insurance companies serve the environment by offsetting carbon emissions, doing their paperwork without actual paper and give rewards to their clients if they drive less. These eco-aware insurance companies give money to projects like reforestation, renewable energy sources and third world education.
However, if you’re a proud owner of a hybrid car (or electric!) then you’ll also enjoy discounts on your insurance premiums, along with saving the mother nature. More and more auto insurance companies start offering discounts for driving a hybrid or electric car these days and it’s becoming a nationwide trend. Even in the UK auto insurance companies began offering discounts on car insurance premiums to those people who drive hybrid vehicles.
As stated earlier in the Cheap Car Insurance for Women article, insurance companies care about maximizing their profits. Well, the statistics show that the drivers of hybrids and electric cars are the desirable type of drivers for car insurance companies. The statistics show that the people who drive hybrid or electric cars are
- Older, between ages of 40 and 60.
- Have a spouse (This factor alone can lower your insurance premiums because of assumed responsibility)
- More than a HALF of those who drive hybrid or electric vehicles make more than $100,000 annually
- The education level of hybrid and electric car drivers is higher all across the board comparing to all the other drivers.
So besides the regular discount you would get if you had these same characteristics but were driving a regular, 100% gas-powered vehicle, you’re also getting a discount that ranges from 5% to 20%. (Unfortunately, not ALL insurance companies are offering discounts for eco cars).
Some of the companies that offer the new, environmentally safe insurance plans are Esurance, Better World Club and the Allstate Driving Green Program. Esurance has been environmentally aware since 1999, when it started providing eco car insurance in 28 states. Esurance has also been doing its business electronically, bypassing the paper bills. Better World Club offers Pay As You Drive plans and Allstate Driving Green program offers paperless billing (like Esurance) but also donates to Arbor Day Foundation on behalf of new members.
There’s one thing to keep in mind about hybrid cars. You insurance company will give you a discount on liability and bodily injury liability coverage, but most likely not offer the discount for the collision and comprehensive coverages. The reason is that hybrid cars are usually more expensive than regular gas-guzzlers so the repair cost of a hybrid car is higher (less common parts, etc.). Because hybrid cars cost more, your premium for comprehensive coverage will go up as well because of the repair or replacement costs.
All in all, the price of hybrid vehicles will go down as the trend becomes more and more steep and as car companies start producing hybrid vehicles on a mass scale. The beginnings of this were obvious in 2010, so more of that is definitely coming. Along with the decreased cost of the hybrid vehicle itself the cost for eco car insurance will lower as well and more people will be able to enjoy the benefits of driving an environmentally safe car and paying less money for car insurance. The day is coming!