Tips for Green Auto Insurance

Green auto insurance encompasses practices that encourage environmental conservation. Both insurance companies and drivers must work together for green auto insurance. Below are some things that encourage green auto insurance behaviors.

Paperless Operations

Paper is bad for the environment since it requires trees as raw materials. Choose an auto insurance carrier that offers as many paperless services as possible. Paperless operations are possible in diverse areas, such as:

• Policy renewals
• Premium payments
• Claim filings
• Delivery of policy statements

Paperless operations can take different forms, such as:

• The use of emails instead of paper documents
• The use of a mobile app
• The use of online self-service portals

Whenever your carrier has two options for a service, paper and paperless, choose the paperless option.

Usage-Based Insurance

Usage-based insurance (UBI) goes by several other names, such as pay-as-you-go or pay-as-you-drive insurance. All these terms refer to an insurance coverage where the insurance carrier only charges you for the miles you drive. In some cases, the insurance company also considers your driving behavior.

To use UBI, the insurance company will install a telematics device in your car. The device monitors how much, where, and how you drive. The insurance company uses the data to determine your premiums. Here are some tips to reduce your annual driving mileage:

• Walk or bike whenever possible
• Use public transportation whenever possible
• Plan your routes and use the shortest, best possible routes
• Embrace ridesharing or carpooling services

UBI is green since it encourages and rewards good driving habits and low driving mileage. Both of these consume little fuel and are great for the environment.

Green Discounts

Some insurance companies may reward you with relevant discounts if you use green practices. For example, some companies will give you a discount if:

• You embrace paperless options
• You minimize your annual driving mileage
• You drive an electric or hybrid car
• You drive a car that uses alternative fuels

Many people don't know about these discounts because they don't ask for them and auto insurance companies do not always advertise the discounts they offer. Ask your carrier or insurance agent for all the discounts you qualify for, including these green discounts.

Green Internal Practices

Most of the green practices from auto insurance companies focus on their clients. However, many insurance companies also have green practices that don't directly relate to motorists. According to Insurance Institute Information (III), some auto insurance companies:

• Play an active role in warning public leaders and the public on global warming threats
• Have established units that specifically address global warming and environmental conservation programs
• Sponsor research on environmental conservation programs
• Offset their carbon credits via various conservation programs, such as reforestation
• Encourage green practices in their employees

According to insuramatch.com, some major insurance carriers:

• Have introduced recycling programs in their companies
• Go out of their way to deal with other businesses, such as auto mechanics, with green practices
• Are committed to reducing their energy consumptions

Insurance companies approach these issues in different ways. Ask your potential insurer about their green policies.

Hybrid Replacement Endorsement

Lastly, some insurance companies also have hybrid endorsement programs as their contribution to green technologies. You buy into such a program by endorsing (for a small fee) your auto insurance policy. In case you lose your car in a disaster, accident, or theft incident, the insurance company replaces your car with a comparable hybrid car.

As you can see, we can do a lot for the environment if everyone — motorists and insurance companies — work together. Illinois Insurance Center, which operates out of Chicago, IL, is committed to encouraging responsible auto insurance in Illinois. Contact us with your requirements, and we will get back to you with good quotes.