Car Insurance for Biodiesel Cars

Car insurance for biodiesel cars could be cheaper by up to to 10% by taking advantage of green car discounts. Biodiesel will also save you more on gas prices. Car insurance for biodiesel may even be cheaper because the cost of repairs is typically lower. Cheap biodiesel car insurance is within your grasp. Just enter your zip below.

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Zaneta Wood, Ed.S. has over 15 years of experience in research and technical writing bringing a keen understanding of data analysis and information synthesis to reach a wide variety of audiences. She studied adult education and instructional technology at Appalachian State University as well as technical and professional communication at East Carolina University. Zaneta has prepared technical p...

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Joel Ohman is the CEO of a private equity backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Jo...

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Reviewed by Joel Ohman
Founder & CFP®

UPDATED: Jan 25, 2021

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Here's what you need to know...

  • Biodiesel is made from a host of natural, renewable resources and has grown in popularity around the world
  • Having a car that runs on biodiesel may save you up to 10% on your insurance rates
  • Car insurance for biodiesel cars may also include big discounts on the costs of repairs


If you drive a biodiesel car or are considering switching over to one, you may save quite a bit of money on your car insurance rates. Besides saving money on insurance, owning a biodiesel vehicle comes with other advantages as well.

Because biodiesel is made from natural resources, it is easy to find and is easy on your car. If you already have a car that runs on diesel, you may want to consider changing over to biodiesel.

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Biodiesel Fuel Resources

Biodiesel is preferred by some people because it is eco-friendly. It is an alternative to diesel fuel, which is made from petroleum, and biodiesel is made from renewable resources found in the United States, so it is not dependent upon international trade relations.

The main sources for biodiesel fuel include animal fats and vegetable oils, both non-edible and edible.

Oils that can be used for biodiesel include cottonseed oil, karanja, mahua, castor oil, Jatropha curcas (from the jatropha nut), coconut oil, and rice bran oil.

There are certain kinds of biodiesel that are made from crops that otherwise would have no purpose. Those who produce biodiesel fuel do their best to stay away from using crops otherwise used as sources of food, to avoid ethical issues.

Other kinds of biodiesel are made from waste oil that was previously used to make other products like fryer oil found in restaurants or the manufacturing of foods such as potato chips.

Biodiesel has become popular around the world because it is non-flammable, biodegradable, and non-toxic.

Depending on the resources of the country, different countries use other sources for biodiesel. The primary source in Europe is rapeseed. In Southeast Asia and South America, Palm oil is a very cost-effective source of biodiesel.

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In tropical climates, jatropha nut oil is used because the plants can tolerate degraded, poor soils and can resist disease and pests.

In fact, plantations of Jatropha curcas have been popping up in some countries in Africa and India for the sole purpose of biodiesel production.

Biodiesel fuel can be used either as blends with petrodiesel or in the pure form in vehicles without doing any major changes.

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The History of Biodiesel Fuel and Car Insurance Rates

Although driving a biodiesel car can save you money now on your car insurance, it hasn’t always been that way.

When biodiesel vehicles were first introduced, rates for car insurance were very high. For those individuals who converted their vehicles from diesel to biodiesel, insurance companies would charge them high premiums.

Over the last few years, things have changed, and insurance rates for biodiesel cars have gone down.

The government and insurance companies have come to understand that there are advantages to owning biodiesel and other green energy cars, and they are providing discounts and special offers on insurance.

Car insurance for biodiesel cars may also include big discounts on the costs of repairs, as well as cash back offers.

Before you convert your car to run on biodiesel, you should check with your insurance agent to see what discounts and offers are available in your state.

Advantages to Changing Your Vehicle to Biodiesel

If you drive a car or vehicle that already runs on diesel, you may be able to directly use biodiesel in it without doing anything to convert it over.

Other vehicles with diesel engines will need to be changed to engines that can take biodiesel. Fortunately, it is not costly to convert your vehicle to biodiesel.

One of the main advantages to converting to your vehicle to biodiesel is that it is environmentally friendly.

Because there are no harmful gasses emitted from the car into the environment, the environment stays protected, and carbon emissions are reduced. Renewable sources are used to run the car, so there is little danger of the resources running out.

Another advantage to driving a biodiesel vehicle is that it can save you money.

One way you save money is on fuel, as biodiesel fuel is less costly than regular fuel. Because insurance companies now recognize the benefits of biodiesel vehicles, you may also receive discounts on your car insurance, which will save you money on your insurance premiums.

If you drive a biodiesel vehicle, you might also be helping to transform the energy and economic status of our country.

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