In these environmentally conscious times, many of us are trying to be kinder to the environment and one method that you can use to be more environmentally friendly is to purchase green car insurance. But what exactly is green car insurance, how can it benefit you and more importantly how can it benefit the environment?
What is green car insurance?
There are several companies currently offering green car insurance which generally involves carbon offset schemes. Your vehicle and the amount that you drive will be assessed to find out how much carbon dioxide (CO2) your car is likely to produce every year. The insurance company you choose will then purchase carbon credits from various carbon offset schemes on your behalf. The more CO2 your car produces, the more carbon credits the company will purchase.
What is a carbon offset scheme?
There are several different types of carbon offset schemes that run all over the world. They can involve planting trees, recycling and other environmental efforts. Some insurers will offset all of the emissions you produce whilst others will use a percentage of your premium to help fund schemes. Other insurers will make a charitable donation to ecological charities using a percentage of your premium.
Can I get cheaper insurance if I drive an eco friendly car?
Most ordinary insurers offer special deals for people who drive more eco friendly cars and your premiums will be based on things like the size of your car, the size of your engine, the fuel you use and the number of miles you drive, so if you choose a more eco friendly car you can end up getting cheaper car insurance.
However, green car insurance can be more expensive than ordinary insurance because a percentage of what you pay will be going towards carbon offset schemes or ecological charities.
How can I find the best deal on green car insurance?
One of the most effective ways to find a good deal on car insurance is to check price comparison websites. Most insurers will offer special deals online and you'll be able to find out the details about exactly what is offered by any carbon offset scheme, so you can decide whether the projects being funded are worth the extra expense.
Can I reduce the cost of my green insurance premiums?
As with any type of car insurance, it's possible to reduce your premiums by choosing the right car. In basic terms, if your car is a gas guzzler you can expect to pay more, so choose a car with good fuel economy and a smaller engine.
If you agree to limit the amount of mileage which you do, you can significantly reduce the costs of green car insurance because you're less likely to have an accident or need repairs if you limit your mileage, but you'll also be producing less CO2.
If you want to limit your mileage you can try using public transport or setting up a car share scheme with colleagues. Bear in mind that if you go over your mileage limit you can make your policy void, so make sure you stick to the limit set out.
You can also reduce the cost of your insurance by making sure that your car is as safe and secure as possible, so fit a good alarm system and an immobiliser and try to park your vehicle off the road or in a garage. Limiting your mileage is also a great way to reduce your carbon footprint in these environmentally-conscious times.
Increasing your excess can also be a good way to reduce your insurance premiums, but don’t forget that if you need to make a claim you will have to pay the difference and if you can't afford to do so you may be left without the funds to repair your car.
If you can afford to pay for your insurance in one lump sum rather than on a monthly basis, you'll be rewarded with a discount by most companies. You can also get a discount if you insure more than one vehicle with the same company.
In some cases you'll be offered a significant saving if you take out other forms of insurance, such as life insurance, with the same company.
It's also a good idea to take the time to look around for a better deal when your insurance is up for renewal, rather than simply renewing your existing policy as you could find that offers and discounts will have become available from other insurers.Back to top