Saving Green By Driving Green: Insurance Companies Giving The Break To Eco-Conscious Drivers

eco-insuranceNot only do hybrid vehicles run quieter and use less fuel, now some insurance companies are adding to that cost reduction by offering reduced rates to drivers of hybrid vehicles. In recognition of efforts to support a healthy environment and reduce the consumption of fossil fuels, many insurance companies are now extending as much as a 10% discount on insurance rates simply for driving a hybrid vehicle over a standard gasoline or diesel powered automobile.

Is this trend likely to continue? The real question lies in whether or not hybrid vehicles truly are less expensive to insure because if they actually end up costing insurance companies just as much as ordinary vehicles, it won’t be long before insurance rates return to the norm for all ordinary vehicles. It is interesting to note that California, a state with some of the most heavy air pollution over its more major cities, does not offer a reduction in rates for hybrid vehicle drivers, though one would expect that cities battling the worst pollution would be the first to offer such incentives.

Hybrid cars do use less fossil fuel, are quieter and contribute less to noise pollution, and their engines use less oil than their traditional counterparts. But are they involved in fewer accidents? Do they cost insurance companies less money? The jury is still out, but as the verdict eventually comes in it will be up to insurance companies whether or not hybrid car owners will still get a break on rates.

Leave a Reply