Hybrid Car Discounts

This is is a press release from Ohio Department of Insurance:

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