Fuel efficiency cars can save you money at the gas pump and can help reduce reliance on oil, but they can also save you money when purchasing an insurance policy. A Green Insurance Policy is a product sold by some companies to reward consumers who choose vehicles that save energy. To be eligible for these special discounts, auto owners first have to buy or lease hybrids or alternative fuel cars as determined by government guidelines.
Lower-cost Green Car Insurance Policy: How to Qualify
A Green Policy to insure a car can save you money through discounts applied for alternative fuel and hybrid vehicles. Some companies will take the discounts off from a regular car insurance policy as well. To find out if you are buying or leasing a car that qualifies for green insurance discounts, visit the site fueleconomy.gov. This database managed by the government can help you find hybrids and fuel economy cars that meet guidelines. These are the two types of green discounts allowed for car insurance:
Discounts for hybrids: A hybrid car, one that uses a gasoline engine and an electric motor, qualifies for insurance discount under a Green Policy. The discounts can add up to 10% off from the policy premiums, depending on the insurance company. Some of the popular hybrid cars include the Toyota Prius, Ford Fusion, Honda Civic and the Toyota Highlander.
Discounts for alternative fuel: Cars that can qualify for these offers are ones using alternative fuels. The sources of these fuels often include, electricity, natural gas (not gasoline), propane, biodiesel and ethanol. Basically, these cars don’t use gasoline. Some of the car models not needing gasoline include, Chevrolet Malibu, Mercury Mariner and Ford Escape on ethanol. Also, the Nissan Leaf and the Smart Car running on electricity qualify under alternative fuels.
Hybrids and Alternative Fuels Car Insurance Discounts: Where to Find Them
Current company: Ask your current car insurance company if it offers discounts for hybrid and alternative fuels vehicles. Chances are that if the company doesn’t have a specific Green Insurance program, it may accommodate discounts under a regular policy. Even if your company doesn’t offer the green discounts, get a quote for your car insurance anyways. Use this quote to do comparison-shopping.
Green Insurance companies: Companies that promote specific Green Insurance include, HybridsTravelers.com, Geico (in some states) and Farmers’ Insurance. It’s always a good idea to get several quotes to compare costs between your current and a new company.
As an alternative, you can find car insurance discounts under a Pay as You Drive program. Under this program you get discounts based on miles driven in your car, the less you drive the higher the discounts. Any type of vehicle may qualify for this program since is based on miles driven, not on the type of vehicle.
Drivers can cut their car insurance premiums by opting to buy or lease hybrids and alternative fuel vehicles. Insurance companies are offering green policy or discounts for driving cars that reduce reliance on oil as a source of fuel. Also, drivers can opt for a Pay as You Drive arrangement to minimize insurance premium costs.
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Sites were accessed on August 10, 2011.
Sylvia Cruz - Sylvia holds Bachelor and Master degrees in Business Administration with majors in Finance and Accounting. She is also a CIA - Certified ...
