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Go Green,Better Insurance: How Going Green Lowers your Insurance Costs.

The Eco bandwagon is now part of the domain of the insurance industry. The industry is rewarding green homes and green cars. You can now cover your house and car by purchasing “green” policies. If your home is destroyed in a fire, earthquake or other such disaster, upcoming policies will pay to rebuild a green home for you. If you purchase a hybrid car or drive less, your insurance company will make sure you benefit for it.

Psychology Behind Green Insurance

There are various psychological reasons for the new trend. Green purchasers are upscale. This is one reason green technology is attractive to insurers. In addition, psychologically there is a link between a person emitting less greenhouse gases and risk free behavior.  This is the opinion of Andrew Logan, director of the insurance program from Ceres.

Go Green,Better Insurance: How Going Green Lowers your Insurance Costs.Discounts On Green Cars

Discounts are given to hybrid owners at an amount of up to 10 percent of the insurance policy. Hybrid customers are more conscientious about maintaining their vehicles and safe driving according to Evan Mills – a Lawrence Berkeley National Laboratory scientist.  Allstate offers a 2% discount for paperless billing. In addition it pays $30 to pollution reducing projects from each new policy.

For some gas prices are a strong motivator to limit driving. The new green discounts that are coming in can be substantial according to J. Robert Hunter of the Consumer Federation of America. Consumers can save over 50 % in some insurance companies by maintaining a pre-decided mileage. If you are a customer of GMAC and you travel between 12,501 and 15,000 miles a year you save 13% on insurance. If you travel less than 2,500 miles a year, you save 54%. In these cases gas prices as well as insurance premiums are a strong motivator to drive less.

Tracking Traveling Miles

So how does the insurer track your traveling miles? Through a mileage tracking device like a GPS. Progressive (the insurance firm) requires computer data to be sent every 6 months.

Benefits For The Insured

Some insurance programs allow policy holders to rebuild using sustainable materials after a loss. They may also offer for replacing appliances with more energy-efficient ones. The program cost increases by 3% due to the upgrade which is roughly the increased cost of an energy-efficient home. According to insurers the increased cost of insurance is non-significant.

There are some policies that work for homeowners who create their own energy. If the system stops working you will be able to purchase power elsewhere via an additional cost of 2% of the policy. Fireman’s Fund allowed homeowners who lost homes in California’s wildfires to rebuild green homes at no extra cost. Owners of green homes are to be allowed a 5% discount.

Two Types Of Green Policies

The handful of insurance companies that are green allow green homeowners and hybrid car owners to benefit in insurance costs. They can pay lower premiums if they have a green certified home. Is a green home good for you? The answer is yes. It is healthy, uses less energy and is good for the environment.  Broadly there are two types of green policies. One covers existing green homes. The other seeks to replace losses with green alternatives.

Several insurers are offering the option of “green replacement” – replacing losses with green alternatives. With green insurance available for housing and cars, there is little reason not to take it. You are doing good to your health, the environment and saving a bit of extra cash as well!

Guest post by contributing author Richard O. To check your options when signing up for insurance, make sure you check homeowners insurance quotes from homeinsurance.com.

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