Does thinking green = lower auto rates?

Submitted by lilacsigh on Sun, 12/23/2007 - 03:24

With the innovations in the automobile industry and the introduction of various "green" laws to help improve the environment, this thought struck me.

Will the day ever come when having a hybrid or hydrogen powered car will be treated more favorably by all the insurance companies than an ordinary one?

Thoughts appreciated please. I'm thinking about how some environmentally friendly initiatives get tax breaks, so why not insurance breaks too?

Posted: 23 Dec 2007 12:21 Post Subject:

I doubt that 'green' will ever reduce rates (frankly the parts to repair these cars are crazy high) but you do currently get a really nice tax credit for buying one!

Posted: 24 Dec 2007 08:06 Post Subject: for the masses..

I'm thinking about how some environmentally friendly initiatives get tax breaks, so why not insurance breaks too?



Well, I don't think any effort towards the wellbeing of the masses can be quantified at par with moves towards unique contributions! When you're using an environment friendly fuel, then your effort won't make such a huge difference ( because may be pretty many people would be using it then…) Isn't it!
truelies9/11

Posted: 24 Dec 2007 08:44 Post Subject:

Hi there...

I don't believe what the Govt. can do be easily done or followed by an insurer.
The govt. defines rules for the people...n an insurer needs to follow those rules!
Thats it!
RudyGolmes

Posted: 24 Dec 2007 09:26 Post Subject:

‘Green laws' may not affect your insurance cost directly because environment friendly nature of the car is not a determinant of the auto insurance premium. The insurers normally concentrate on- your driving history, mileage driven, age and so forth, to assess the cost of insuring you. Using environment friendly fuel will not improve you as a driver if you are not a good one already.

Posted: 24 Dec 2007 11:44 Post Subject:

Green laws' may not affect your insurance cost directly because environment friendly nature of the car is not a determinant of the auto insurance premium. The insurers normally concentrate on- your driving history, mileage driven, age and so forth, to assess the cost of insuring you. Using environment friendly fuel will not improve you as a driver if you are not a good one already

presisely! and very well spoken
burried_in_dark, thank you...still remember though I'm sure there are (still) some income tax benefit allowed for some of the hybrids.

Posted: 26 Dec 2007 05:59 Post Subject:

‘Green laws' may not affect your insurance cost directly because environment friendly nature of the car is not a determinant of the auto insurance premium.



Actually at least one group does use it in exactly that manner, buried_in_dark. The Farmers Insurance Group offers an auto insurance discount called an Alternative Fuel Discount for all major types of coverage including Collision, Comprehensive and more.

It can save you up to 10% and covers vehicles which are gas-electric hybrids, electric only, natural gas only, ethanol only, methanol only and propane only.

They were the first group to do so and it's available in every state except a handful (FL, WV, SC, NJ, CT, MA and RI) according to their website at:

farmers.com/FarmComm/WebSite/html/common/hybrid_discount.html

(add the "www." in front of that)

The insurers normally concentrate on- your driving history, mileage driven, age and so forth, to assess the cost of insuring you.



You'll get no argument from me on that point. That's the way it should be of course. Like any other auto policy, those things would take priority over whether you had a car alarm for example.

Using environment friendly fuel will not improve you as a driver if you are not a good one already.



I never said it would. I was merely putting the idea out there as a possibility for the future, but looks like the future is here already. :)

Posted: 26 Dec 2007 10:27 Post Subject:

Great to know lilacsigh !! (re: farmers) Thanks for straightening us out! I had no idea any were offering any incentive yet for flex fuel vehicles...makes sense though, and I'll bet THEY get some sort of tax break for doing so....as always with insurance, other carriers will follow suit shortly I'm sure...

Posted: 26 Dec 2007 12:13 Post Subject:

Wow!! Great info Lilac. If Framer is doing this then other's will follow soon. This can work as a very good incentive to encourage people to use alternative fuels on their cars. 10% is a pretty good rebate.

It is definitely a good move to save the ‘Mother Nature'.

Posted: 27 Dec 2007 12:35 Post Subject:

Indeed it is, the more people are encouraged to go green as everyone's calling it, the less pollution from cars, green cars sell, the insurance company gets business, everyone wins.

I would've guessed that someone would've eventually done this as a promotional thing to get business, and to have a second motive of helping the environment.

Posted: 27 Dec 2007 03:52 Post Subject:

are green cars more expensive than regular gasoline vehicles, I have never really looked at one. Just curious as to what the selling price is?

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