Green Car Insurance

The average cost for green car insurance is $1,100 to $4,700/year, depending on the vehicle. Going green can save the environment, and it can save some green on your car insurance. Read on to learn more!

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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...

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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...

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Reviewed byJoel Ohman
Founder, CFP®https://res.cloudinary.com/quotellc/image/upload/insurance-site-images/ciccom-live/41b5e36b-joel-ohman.jpg

UPDATED: Jul 28, 2020

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Here's what you need to know...

  • Insurance companies now reward individuals who drive eco-friendly cars.
  • Because of the impact these cars have on our environment, many insurance companies see the benefit of rewarding the people who drive them.
  • More models of the green car come out each year, and companies are working to make each style more fuel-efficient.

Can “going green” lead to savings on car insurance?

The concept of green car insurance is not just a society-wide push to reduce energy demands and prevent global environmental disaster. Going green is a concept to reduce the costs of consumer goods, including car insurance.

Car insurance is green when consumers spend less of their income on non-renewable sources and products. People want more money to spend in other areas of life: a better home, a sleeker car, nicer clothing, and healthier diets.

Continue reading to learn how green car insurance can save you money.

If you happen to have an eco-friendly car, you may be to get car insurance for going green. Enter your ZIP code to receive FREE car insurance rates from multiple companies today!

Green Car Insurance Rates

Green car insurance is coverage for a Hybrid or Electric vehicle. With the popularity of green cars, such as the Toyota Prius,  car insurance rates for the Prius and other similar vehicles are affected. Let’s compare Toyota Prius car insurance rates with a more expensive green car like the Tesla Model X.

CompanyAnnual Tesla Model X RatesAnnual Toyota Prius Rates
Allstate$4,759$2,112
Geico$3,291$1,475
Farmers$4,923$1,710
Liberty Mutual$3,100$1,718
Nationwide$2,145$1,305
Progressive$2,299$1,706
State Farm$2,397$1,562
USAA$1,766$1,128
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Annual Green Car Insurance Rates for Tesla Model X and Toyota Prius

Compared to the Tesla Model X, the Toyota Prius has affordable car insurance. USAA, Nationwide, and Progressive have the cheapest car insurance rates for Tesla Model X.

Green Insurance Agency, Corp. is an independent South Carolina agent that works Progressive, while Green Insurance Consultants is a small private insurance firm.

What about companies like Esurance? Esurance’s Toyota Prius car insurance rate is $1,188 per year (or $100 per month).

Your vehicle’s value determines car insurance rates. Tesla Model X has expensive car insurance because its value is much higher than the Toyota Prius.

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Why are insurance companies siding with the eco-friendly green movement?

The initial idea is better gas mileage in hopes of saving our planet. But what effect does going green with a vehicle choice have on car insurance? After all, an insurer’s bottom line is not influenced by environmental changes, or is it?

  • More and stronger storms increase the likelihood of damage that will be incurred by a vehicle.
  • Floods increase the chances that a car will be swept away and damage the property of another person, the vehicle itself, and perhaps even the driver.
  • As the planet warms, drivers will experience physiological effects that, in turn, affect their ability to drive. The elderly are especially vulnerable to drastic changes in temperature. If they have a heat stroke while driving, then the car insurance company will likely have to pay out on an expensive claim.
  • With entire areas being wiped out — like New Orleans after Hurricane Katrina — the fewer customers’ insurance companies will have. Natural disasters have terrible consequences on the car insurance business. Market share decreases, claims increase, and entire economies are shattered.

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How have car insurance companies responded?

According to Green America, green insurance has become a new concept of our time and is based on the vested profit interests of the insurance companies.

Several companies are offering five to ten percent premium discounts for customers driving eco-friendly vehicles. Companies are enticing consumers to their insurance products with green tokens of appreciation.

Some provide 100 percent cost offsets based on vehicle emissions. If your vehicle emits 20 percent fewer harmful particles than the average, then your insurance rate will reflect that in savings.

Further, some companies ensure the customer that an ample percent of the profits they earn is donated to charities.

Are green vehicles safer?

There are many safe and protective reasons behind insurance companies reducing premiums on green vehicles.

  • Vehicles that do not rely on fossil fuels have a reduced chance of fire during an accident.
  • Most green vehicles have been produced within the past five years and are subject to new government guidelines in production, which have increased the safety of the cars.

According to Forbes, Eco-friendly cars have brighter lights, are more impact-resistant, and tend to have side-impact airbags.

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Where is the green car industry today?

It’s a strange day we live in. Twenty years ago, at the beginning of the green car movement, insurance companies prided themselves on how well they were able to profit from their clients. Today, being green or eco-friendly is essential to a car insurance company’s image.

For consumers, the time is now to take advantage of the low rates available.

Over the past decades, car companies have invested heavily in creating production model vehicles that are environmentally friendly. Early concepts were impractical, to say the least.

Their driving range hardly got someone to work and back. The vehicles were smaller than the Geo Metro, and finding a mechanic to fix one was as likely as finding a $100 bill on the street.

Fast-forwarding to the past ten years, automakers from around the world have moved from producing the concept to having entire fleets with green functionality. At first, it was just the motor. General Motors promoted Flex Fuel designs to burn gasoline mixed with ethanol or vegetable-based fuel.

Watch this video on how you can identify flex-fuel vehicles.

Of course, their concept wasn’t new or difficult to produce. Henry Ford originally intended for vehicles to run on ethanol. Other automakers, like Toyota, are promoting hybrid motors that use gasoline to charge batteries. The batteries, once charged, take overpowering the vehicle down the road.

Green Car Insurance FAQs

Let’s use the final section of this guide to go over frequently asked questions that appear on search engines across the internet. If you’re ready to compare car insurance right now, enter your ZIP code below to receive car insurance rates from multiple companies today!

#1 – Who has the cheapest car insurance?

USAA has the cheapest car insurance in the United States, followed by Geico and State Farm.

#2 – How good is Good2Go car insurance?

Although Good2Go car insurance doesn’t have A.M. Best rating, it currently holds an “A” rating with the Better Business Bureau.

#3 – Who has the cheapest car insurance in Kansas?

American Family, Geico, and State Farm have the most affordable car insurance in Kansas.

#4 – What are the worst insurance companies?

Customers have different opinions on car insurance services. Consumer Report stated that the worst insurance companies were Mercury Insurance Group and Nationwide Insurance.

#5 – Who are the top 5 car insurance companies?

The top 5 car insurance companies are State Farm, Geico, Progressive, Allstate, and Esurance.

 

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