If you’re one of those people who are actually trying to be environmentally friendly, you’ll love today’s post! We’re taking a look at how to go green with auto insurance.
The first thing is pretty obvious, driving less saves you more. If you are attempting to drive less, you could very well be saving money. According to the U.S. Department of Transportation, the average American drives nearly 13,500 miles per year.
Many insurers today are using your annual mileage when determining your auto insurance premium. If you are driving less, be sure to let your agent know. You may be eligible for a low-mileage discount.
We now have something know as usage-based insurance (UBI). Also known as telematics, it uses technology to track your driving habits. A device installed in your vehicl works with your smart phone.
You may remember the Progressive insurance commercial with Flo wanting to install one of these.
By allowing your insurance company to monitor your mileage and general driving habits, you can end up with lower premiums. These types of programs are not available from all insurers or in all states. Check with your agent to see if it’s available where you live.
Beware though; under-reporting your mileage can cause you serious trouble later on. When reporting a claim, the insurance company will check your mileage. Any discrepancy between your actual mileage and your policy application can void your coverage. Always be honest with your agent.
The way to go green with auto insurance is the “park and ride” system. You’ve probably seen the parking lots. You drive your car to a local lot and leave it parked there. From there you take public transportation for the most of your trip to work. Less driving and lower mileage could certainly save you on your premium.
To get your premium lowered, you may just need to reduce the number of miles you drive each year. You may not even need to wait until your renewal. If you do make that change, call your agent immediately.
You should also make sure you have coverage for any damage that happens while your car is parked all day. Remember, there is separate coverage for personal property a car.
Another great way to go green with auto insurance is with a hybrid vehicle. Check with your agent, to see how a hybrid is going to affect your policy.
Some carriers offer up to a 10% discount for hybrid vehicles. This can be great, but insurance rates for hybrid vehicles can to be higher due to higher repair/replacement costs.
Depending upon the state you live in, there may be some other discounts just for owning a hybrid vehicle.
Some companies offer premium discounts for cars that use energy sources like electricity, hydrogen, natural gas, ethanol or biodiesel. Just remember that hybrid vehicles get the same coverage as any other.
Maybe you’re considering a hybrid rental car for your vacation. If so, don’t forget to check on the insurance. Many times a full coverage policy will also cover any rental car too. So, check your policy before you get stuck buying coverage at the rental counter.
Today’s last way to go green with auto insurance is by car sharing. People living in bigger cities often times don’t even own a car. It has just become too inconvenient and really necessary. On those occasions where you do need a vehicle, you might consider a car share.
Car sharing companies offer members a car for a one-way trip, round-trip, a few hours or full day. Using these services usually requires a membership.
Insurance coverage is typically included in the cost of a car share. It is usually the state minimum. However, if you have an accident and the car is damaged, you can be on the hook for some cash. Coverage varies from state to state, so it’s best to know before you go.
Different from car sharing, there are ride sharing companies like Uber and Lyft. They take time to be sure you understand your insurance risks before you get in the passenger seat.
Drivers who don’t own a car, but drive occasionally, may consider a non-owners liability insurance policy. This policy covers the named policyholder when driving, whether it is a friend’s car or a car share.
These policies typically cover some or all of these:
- Liability (financial responsibility when you hurt someone else)
- Uninsured/Under-insured Motorist
- Personal Injury Protection (PIP)
- Medical Payments coverage
Non-owners liability insurance generally does not cover any damage to the vehicle itself.
That’s it for today for in our effort to go green with auto insurance. If you have questions or are interested in information about coverage, remember MrInsurability is only a click away!