How Green Motoring Can Lead To Low Auto Insurance Rates

According to the National Geographic, most (80 to 90%) of the environmental impact of a car comes from its fuel consumption and emissions. This means you can reduce your car's impact on the environment by reducing its fuel consumption and emissions. Doing that may also benefit you in the form of car insurance rates; here are five ways in which that may happen:

Hybrid or Electric Car Discounts

Electric or hybrid cars don't consume as much fuel as conventional gasoline cars. This means they don't pollute the environment as much as gas-powered cars. Some insurance companies show concern for the environment by giving discounts to their clients who drive hybrid or electric cars.

Low Mileage Discounts

The fewer miles you drive, the less fuel you consume, and consuming less fuel also leads to reduced emissions. At the same time, your car insurance carrier may also reward you if you reduce your annual mileage; the reward will be in the form of car insurance discounts. This is because you will be reducing your exposure to risk by lowering your annual driving mileage. Most insurers will consider you for this discount if your annual mileage doesn't exceed 7,500 to 15,000 miles; the exact figure varies by insurer. In fact, if your annual mileage is very low, you may lower your rates further by buying usage-based coverage, where you only pay for the actual miles driven.

Reduced Risk of Crashing

Your driving behavior is one of the factors that affect fuel economy and, as previously discussed, improved fuel economy is good for the environment. At the same time, your driving behavior may also influence your risk of causing a car accident. Your insurance rates are likely to increase with more accidents in your driving history. It so happens that some of the driving behaviors that lead to more fuel consumption may also increase the risk of accidents.

For example, erratic driving that is characterized by quick acceleration and hard braking can affect fuel economy by as much as 33% on highways. At the same time, you increase your risk of crashing into other road users (or having them crash into you) if you like to accelerate fast and brake hard.

As you can see, you have a lot to gain (in terms of your auto insurance rates) by going green. In fact, these are things you should do even if you aren't enamored with the prospect of saving the environment. Talk to your auto insurance agent for more tips on keeping your rates down.