From Guest Blogger Amy Nielson: How to Choose an Insurance Company That's as Eco-friendly as You Are

You’ve purchased a city recycle bin; you’ve changed your light bulbs to be more efficient, and you’ve been repurposing all of your old things instead of buying new things. You’re green and you’re proud. It’s not easy, after all, and you pride yourself on making sacrifices for the air. You’ve cut back on your driving habits, but you definitely need to keep the family car. There are ways for you to make sure that your car insurance company is on the same green page as you. Here are some ways to make sure that your auto insurance is rewarding your green driving habits and practicing eco-friendly habits that help to cut down on our collective carbon footprint.

The company offers eco-friendly car incentives

When you’re shopping around on car insurance sites, you’ll be able to tell just how eco-friendly your auto insurance company-to-be is. Companies are now getting on board with the green movement, and they are offering incentives for having an eco-friendly car. Not only will hybrid car buyers get tax breaks for their eco-friendly efforts, but they will also get access to HOV lane passes and get less expensive car insurance. Many companies offer up to 10 percent off based solely on the type of car. If the driver has a good driving record on top, they’ll get even better rates.

The company lists various ‘green’ efforts

You can look into your potential auto insurance company to find out if they are shifting to ‘green’ business practices themselves. Find out if companies are shifting to paperless billing and document sharing. Find out if they are making other efforts to reduce their own impacts on the environment. Some insurance companies plant trees as a service gesture to the environment. They also work to promote caroling and other ‘green’ events.

The company offers ‘green’ insurance plans

Insurance companies will often give the customer the option of buying a ‘green’ insurance plan that will contribute to their efforts to team up with local and national organizations to help encourage environmentally responsible driving.
Offering monetary incentives, customers can opt for paperless billing and set up online accounts that allow them to access important documents.

The company offers ‘pay as you drive’ plans

Pay-as-you-drive plans are mile-based auto insurance plans that are based on usage. A relatively new service, this kind of plan has been around for fewer than five years, and most insured drivers are pretty much unaware of the option. For drivers who are conscientious about how much they drive, this plan will not only support your green ways, but it will also save you greens. Mile-based auto insurance can save divers between $200 and $500 per year.

There are various types of usage-based car insurance. One type allows you to sign up for a 100 percent mile-based program. If you drive under a certain number of miles every year, you’ll pay a fixed amount of insurance. Some programs like this do require you to pay a sign-up fee, though, so look into associated costs.

Other insurance companies offer a mix program that bases your rate on the miles you drive in connection with how well you drive.

The results of these kinds of programs not only reward drivers for being environmentally conscious, but they also encourage green driving practices, which can add to up to quite a reduction on carbon emissions. Research indicates that these programs are actually stimulating better air quality as well as rewarding drivers for doing the same.

While some consumers complain that it’s just another novelty allowing companies to appeal to more customers, others argue that these plans are vastly changing the way drivers use energy and resources and the resulting effects on the environment are provable.
Insurance companies’ green policies are a “direct result of looking at climate change as an issue, according to Peter Moraga, spokesperson for Insurance Information Institute of California.
However small consumer and company steps are toward becoming eco-friendly, the steps are starting to add up. Look into green auto insurance plans and continue to contribute to the cause.

Amy Nielson is an avid blogger who writes often for insurance sites. You can follow her on Twitter @NielsonAmy.