Go Green: You’ll Reduce Your Car Insurance Rates

Ever wonder why others pay so much less for insurance than you do? It could be they’ve gone green. By making environmentally focused choices, you can save money on car insurance and feel good about it too. Here are some suggestions for green savings:

Car sharing programs are becoming increasingly popular. Those who don’t want the responsibility of being a car owner but occasionally need to drive can participate in a car-share program and save up to 50% with nonowners insurance.

Buying hybrid cars means discounts. Many insurers provide instant discounts for eco-vehicles, as they score high on safety tests. Usually compact and lightweight, they cause less damage in accidents, so insurers pay out less in claims-all meaning lowered risks to insurers and cheaper premiums for policyholders. Statistics also indicate the majority of eco-car owners are safe drivers, and hybrids are statistically less likely to be stolen.

Cut back on your driving. Try taking public transit or walking or biking to work. This allows you to change your vehicle’s use on your policy to “pleasure.” Pleasure-rated vehicles reduce claims risks, since they’re not on the road as much, meaning lower rates. And that alone can mean a discount of 10%-15%.

Green-minded drivers who drive less also make great candidates for pay-as-you-drive insurance (PAYD) policies. Also called usage-based insurance, this can reduce premiums. Almost two-thirds of hybrid owners, for example, drive 40 miles or less daily; PAYD may make sense for them.