BioDiesel And Insurance

biodiesel-insuranceAlternative forms of energy are a major concern in this energy-consuming society in which we live. Biodiesel energy has been researched and developed for may years, with high hopes of an inexpensive and easily producible form of fuel on the horizon. How will the availability of biodiesel fuel affect auto insurance rates, or will it affect them at all?

It seems that everything affects auto insurance rates nowadays, from your credit history to your driving record, even the color of car you drive and the area of the country in which you reside. Now the question arises as to whether those who support the environment by using biodiesel fuel deserve a reduction in their insurance rates as a sort of reward for being ecologically responsible.

The fact is, the data is inconclusive as to what can be expected as environmental impact of vehicles converting to biodiesel fuel. It is not clear whether there will be a discernible difference in pollution or fossil fuel conservation by switching a limited number of vehicles to the use of biodiesel fuel. It is unlikely that all vehicles will convert to biodiesel any time soon, so the actual impact will likely be minimal. With this being the case, insurance companies are also not likely to offer rate reductions just yet based solely on a vehicle using biodiesel fuel, though undoubtedly this could become a factor in coming years as more vehicles make the switch…IF more vehicles make the switch.

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