Now is one of the most opportune times to get an eco-friendly vehicle. The recent climate bill offers tax credits and other incentives for those going green, including for switching to electric vehicles. And an increasing number of car insurance companies are offering discounts for going green, too.
An overview of these improvements will help you save money while you go green. So stay informed and hop on the eco-friendly bandwagon at the prime moment.
Green Insurance Discounts for Your Eco-Friendly Vehicle
There are many types of discounts car insurance companies offer for driving a green car. So what kind of green car discounts can you expect to see on your insurance?
Just for driving an eco-friendly vehicle, many insurance companies offer discounts on premiums. There are also discounts based on pollutant ratios. And depending on what type of fuel your car uses, you may find insurance discounts too.
The range varies for discounts on premiums just for driving an eco-friendly car. But the savings can be significant. Some car insurance companies offer up to as high as 25% for their discounts.
So there are many reasons to go green when it comes to driving. And fortunately car insurance companies have caught on to this trend.
Why are green car discounts offered?
If you’re considering switching to a fully electric vehicle, you’ll want to be fully informed about insurance rates and discounts as well. You may be wondering what is in it for car insurance companies. Is it too good a discount to be true? Why do car insurance companies offer green car discounts?
Insurance companies have found people who are more likely to go green with their car are more likely to be older. Generally, the demographic most at risk for accidents is much younger. So older demographics means less accidents, statistically.
They have also found this demographic is less likely to drive as much on the whole. People who are more conscious of climate generally drive less to help conserve. This means less accidents as well.
Given this demographic information, it’s not just too good to be true. Car insurance companies have multiple incentives to motivate people to switch to electric cars, in addition to helping the environment. And they have decided to give real, tangible green car discounts.
So you can trust that there really are some good savings to be had for going green.
Green Insurance Discounts for Electric Vehicles
So what kind of rates can you expect to see for green car discounts? The answer is different for different insurance companies. But generally it’s between 5% and 10% with some exceptions.
Farmers offer a 5% discount for going electric. Nationwide offers a slightly higher discount at 7%, while Progressive offers up to 12% off for electric vehicles. And Travelers offers a green discount from between 10% to 13%.
With Allstate, you can find a 10% discount for having an electric car. And it may increase all the way to up to a 25% discount depending on circumstances.
These discounts off your premium can be significant for yearly savings. On average, a 10% discount could amount to over $400 or more in yearly savings.
Fuel-Based Green Discounts on Car Insurance Premiums
You can also find car insurance discounts for using alternative fuel. The Insurance Information Institute (III) lists alternative fuels as including biodiesel, electricity, natural gas, hydrogen, or ethanol.
So these discounts don’t just apply to vehicles that solely rely on electricity. They also apply to hybrid vehicles that use a combination of electricity and gas. And these discounts also come directly out of your car insurance premium.
For example, Travelers offers a 10% discount on hybrids for using alternative fuel. Farmers also offers a similar 10% discount. And Geico offers 5% off.
So you don’t have to go fully electric to get a green car discount. Just taking steps towards the eco-friendly direction by using alternative fuels can still end up saving you money.
Car Insurance Discounts for Vehicles with Fewer Pollutants
Some insurance companies will even discount cars based on pollution reduction rates.
There are various types of ways you can reduce pollution in your car. For example, there are techniques such as oxide gas purification to cleanse harmful pollutants in car emissions. Or, of course, you can switch to an electric, hybrid, or alternative fuel vehicle.
Generally if your car produces 20% fewer harmful particles than average, you may qualify for this green discount.
And you may qualify for this car insurance discount even if others don’t apply. So it’s worth seeing if this discount is offered.
Tax Credits for Driving an Eco-Friendly Vehicle
Depending on various factors, you may qualify for up to a $7,500 tax credit for buying or driving a new electric vehicle.
There are a few criteria your vehicle must fit to qualify. For example, your vehicle must have been purchased after December 31, 2009. And it must use a traction battery, as well as meet emission standards. Additionally, the maximum tax credit amount varies by state.
The tax credit is applicable to both fully electric vehicles and plug-in hybrids.
Also if you opt for a used electric vehicle, you may still qualify for a $4,000 tax credit.
How else can driving an eco-friendly car be beneficial?
You will continue to save money when driving a green car because the cost of gasoline is much higher. Charging your car is both more efficient and more cost-effective. So if you commit long-term, you’ll save.
And of course, the environmental impact you’ll have by going green is very important. Hurricanes, tropical storms, tornadoes, and other severe weather patterns are on the rise.
Driving eco-friendly cars will contribute less to climate change. And this will lessen environmental damage due to climate change over time.
Eco-Friendly Vehicles in Your Future
The future is looking bright for the eco-friendly vehicle industry. In fact, did you know there may be even greener cars soon? Fully electric cars are already very helpful for the environment. And this industry is rapidly expanding, evolving, and progressing.
So it’s no surprise that new technological developments have been made for sodium-ion battery-powered electric cars. These are even more environmentally friendly than lithium batteries, including to manufacture. You may see these becoming popular in the near future.
Whatever the future may be, now is the time to go green. Insurance companies know the trend is taking off and see it as an opportunity. And that’s your opportunity to both save money and help save the environment.
Dorothea Hudson writes and researches for the car insurance site, CarInsuranceComparison.com. She enjoys educating her readers about cutting edge tech that helps the environment.