STATE OF OHIO
DEPARTMENT OF INSURANCE
COMMUNICATIONS OFFICE

4/22/2010

Earth Day and Insurance

Going Green May Help You Save Premium Green

COLUMBUS — Green energy, sustainable food, recycling, hybrid vehicles – environmental awareness is impacting the lives of Americans every day. Many consumers are choosing to make both small and large changes to reduce their carbon footprint. If you are contemplating going green for the 40th anniversary of Earth Day, the Ohio Department of Insurance suggests you consider how those changes could affect your insurance needs – especially your auto and homeowner’s policies.

AUTO INSURANCE

Driving Less, Saving More

Many insurance companies use the number of miles you drive as a factor when figuring your auto insurance premium. So, if you’re considering ways to shrink your carbon footprint by driving less, you might also be considering options that could lower your auto insurance premium. Here are a few insurance implications to some of the more often used means to “green” your ride.

Buying a Hybrid Vehicle

If you’re out to burn less fuel and take advantage of the federal tax incentive to buy a hybrid, before you drive off the lot, it’s always a good plan to check with your insurance agent to see how the change is going to affect your policy.  The coverage in the standard auto insurance policy should be the same for a hybrid as it is for a standard vehicle, but if you’re buying a new car, check with your insurance agent or company to see if you qualify for an additional hybrid car discount.

Renting a Hybrid Car on Vacation

If you’re considering a hybrid rental car for your summer vacation, don’t forget to check on the insurance. If you have an auto insurance policy, it’s possible it will extend to the rental car, so check your policy before you’re offered more coverage at the rental counter.

Pay-As-You-Drive or Pay-As-You-Go Auto Insurance

A newer option for car owners in Ohio is pay-as-you-drive auto insurance. These policies provide discounts based on mileage. These types of programs are not available from most companies, so if you’re interested, call your agent and ask if it’s an option. These programs are not limited to hybrid car owners.

To figure out how much you’re driving, the insurance company uses a data logging device (DLD), which is plugged into an onboard diagnostic port in your car called an OBDII. This captures the number of miles you drive, the time of day you drive, or some combination of those factors and then uses these to calculate your premium.

Park and Ride

If you live in a large urban area or travel great distances from home to work, you may be considering “park and ride” – where you drive your car to a local lot and leave it parked during the day, taking public transportation for the majority of your commute. This could have a positive effect on your premium.

Your auto insurance premium is based partially on the number of miles you drive or the distance you drive to work.   If you are substantially cutting the number of miles you drive, your insurance company may offer a lower rate. Call your insurance agent or company and talk with them about the change to see if it would affect your premium.

While you’re on the phone with your agent, make sure your auto policy is going to cover the car for any damage that happens while it’s parked in the lot and make sure your homeowners or renter’s policy would cover your belongings left in the car if it was broken into while you’re at work.

Car Shares

If you’re a city dweller who’s given up a car all together, you may be considering a car share plan for those times when you really need your own wheels to get around. Car shares like City Car Share in California or ZipCar offer their members the flexibility of picking up a car for a couple hours or a full day. Generally, you have to become a member to use a car from these fleets.

Insurance coverage is generally included in the cost of using one of these car shares. In most cases, this will include at least the state minimum liability and property damage for the car. But be prepared to pay a fee if you’re in an accident and the car is damaged. The details of your coverage may change from state to state, so make sure to talk with the car share company before you take the car.

Drivers who don’t own a car, but drive occasionally may be considering a non-owners liability insurance policy. This type of policy covers the named policyholder when driving, whether it is a friend’s car or a car share. Typical policies will cover some or all of these: liability (financial responsibility when you hurt someone else or damage someone’s property), Uninsured/Underinsured Motorist Protection, and Medical Payments coverage. Non-owners liability insurance generally does not cover damage to the car you’re driving.

HOMEOWNERS INSURANCE

For homeowners that are striving to make their homes meet the U.S. Green Building Council (USGBC) or LEED® certification, checking your insurance policy to make sure you’re covered should be an important step in the planning process. A standard homeowner’s policy might not cover the costs of replacing your upgrades. Confirm that your homeowner’s policy specifically provides replacement to that same environmental level so that you won’t have to pay out-of-pocket costs to reach those same standards.

Green Homeowners Insurance

A green homeowner’s policy covers either the actual cash value or replacement cost of rebuilding a certified green home or upgrading a standard home to a green standard.

Some policies will allow you to repair your home using green materials, but will have a cap on covered costs. Others may exclude coverage of items such as the fees charged by inspectors for having your home certified or re-certified as green. In the event of a total loss, the coverage may also pay for environmentally sensitive demolition and debris removal.

The terms and discounts offered on green policies will differ from company to company. Make sure to get several quotes and ask questions about any limitations on what is covered, how rebuilding costs are figured and what it takes to be eligible for green coverage.

Solar Panels and Wind Turbines

If you are considering adding solar panels or a wind turbine to your home, it’s important to check with your homeowners insurance agent or company before making the modifications. Some insurance companies are now extending homeowners coverage to these green renovations, but not all companies offer the coverage. In some cases, the addition of solar panels or a wind turbine can significantly affect the cost of your insurance policy.  Call your insurance agent or company to see if they will extend coverage to the additions.

If you have solar panels or a wind turbine and are considering selling your excess energy, you may have specific insurance obligations before setting up the transfer. Contact your energy company to see what those obligations are.

For additional information about this and other types of insurance coverage, please visit the Department’s web site, www.insurance.ohio.gov or call the Department’s Consumer Service’s hotline at 1-800-686-1526

Every penny counts these days. Hybrid car discounts are popping up everywhere around us everyday. If you drive a hybrid car remember to ask for a discounts because you never know where you will find them. If you don't own a hybrid car yet...what are you waiting for?

“Our collaboration with Lotus and Italdesign on progressive technology and design will further propel our competitiveness in the world market,” said Proton Holdings Berhad Group executive Dato’ Haji Syed Zainal Abidin B Syed Mohamed Tahir (we’re not sure if he has a nickname). “Through this association, we strive to acquire and jointly develop new knowledge, skills and technologies that will ultimately benefit our customers.”

Visitiors to the Geneva show will be able to view the Proton Hybrid Concept at the Italdesign stand.
Full articel located at http://www.worldcarfans.com/110022324710/proton-concept-hybrid-powertrain-by-lotus

The extremely fuel efficient hybrid cars cuts down the emission of the green house gasses quite effectively, thereby saving a very important resource - gasoline. The cars also curbs the pollution level and are more efficient in environmental management as they emit 50 percent less carbon monoxide and 80 percent less nitrogen oxide than the other traditional cars. These cars are cost effective as well. As these cars consume a very little amount of gas, hence they cost less to run.

Why opt for Hybrid Cars? Hybrid cars plays a pivotal role in the consumption of energy. Moreover, the amount of carbon monoxide and nitrogen oxide emitted from the car is quite less than that of other conventional cars. These cars seemingly constrain the emission of greenhouse gasses. Hybrid car costs something between $19,000 to $25,000. Although pretty complex in application and quite expensive for a car to boast of, hybrid car stands tall as the most gasoline efficient among other cars. While certain drivers who have driven this particular car have raised hue and cry about the authenticity of its mileage, hybrid car still remains as one of the biggest discoveries in recent times.

The latest hybrid cars like Toyota Prius are ideal for city traffic where the cars need to stop and start frequently. The hybrids can switch from fuel to battery efficiently and offers better mileage. This is beneficial from the economic point of view. The owners can feel the difference after using a hybrid car for some months.

While the cost of the hybrid cars are on the higher side, one should remember that their batteries are totally recyclable. Toyota has a scheme for battery re cycling. This eventually leads to green and clean environment and reduced carbon footprint. Less pollution on the street also reduces the possibility of pollution related diseases in people. Hybrid cars stands as the gen-y cars and is surely here to stay.

Another disadvantage of the hybrid cars that have restricted its sell is its battery. The batteries of the cars are priced in between $5,000 to $8,000 depending on the model of the car. Though the batteries of these cars are quite expensive, they get exhausted after running 80,000 miles and need to be replaced. A person who needs to travel frequently in different places does not prefer hybrid cars for this reason.

Though the hybrid cars are expensive than the conventional cars, they are more prone to damages. To increase the speed of these cars, the body of these cars are made with light materials, which get damaged easily if the cars get involved in an accident and makes these cars unsuitable for driving on the rough roads. As these cars are not available in all places, it is difficult to find a skilled mechanic for repairing the damages of these cars and so people do not prefer these cars. Availability of these cars in a limited number of places is also one of the reasons for its low demand.