What is eco car insurance? [Review + Green Discounts]

Eco car insurance means putting a small percentage of your rates toward planting trees to offset your carbon emissions. Driving green can save you up to 10% on car insurance rates.

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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 27, 2021

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Here's what you need to know...

  • Eco car insurance puts part of their profits back into the environment
  • Sometimes eco-friendly insurance companies reward you for driving less
  • There are techniques of driving that can help you be more economical with your fuel, and thus help the environment
  • There’s a British company ECO Car Insurance: Number (678) 646-0956 (if you’re in the UK and looking for them)

What is eco car insurance? If you have been hearing about eco auto insurance lately, you may very well be wondering what it is. Our planet is in trouble, and more and more people are becoming increasingly aware of their own carbon footprint.

For those of us who understand that what we do and what we buy makes an impact on our planet, the allure of green cars is enticing.

If you get eco car insurance, a number of great things will happen. You can even look around and get coverage with the car insurance companies that are most environmentally friendly. However, you don’t want to be wooed into buying something just because a savvy marketer slaps an environmentally friendly-sounding name on it.

So take a couple of minutes to really understand what eco car insurance is and what it does for both you and the planet. Enter your ZIP code above to get free earth-friendly, paperless online, cheap car insurance quotes with just a zip code now.

What Eco Car Insurance Is and What It Is Not

So, what is green car insurance (aka eco auto insurance)? Every day we drive our cars (the car engine happens to be one of the biggest pollutants on the planet) and usually never give much thought to the harm we are causing.

While exhaust fumes from our vehicles are bad for the planet, unfortunately, not all of us are able to bike or walk to work every day. This is where eco-friendly car insurance comes into play.

How does this process work?

  1. You get car insurance — For the most part, you pay for normal car insurance coverage for your green car
  2. You pay a slightly discounted rate — You can get an electric car insurance discount because you are doing things that are good for the environment.
  3. You help the environment — Meanwhile, the green auto insurance company takes a percentage of their profits and puts it towards offsetting your carbon dioxide emissions.

You can start by signing up with an eco-friendly car insurance company who helps erase your carbon footprint.

Many of these companies will actually do something good for the environment, according to every mile saved, and pass the savings on to you.

Some of these companies plant trees to help counteract harmful CO2 emissions as well.

Are electric vehicles expensive to insure? While they might be a little pricier, many car insurance companies offer a “green discount” or hybrid car insurance discount for having an eco-friendly car.

Green Vehicle Car Insurance Discounts Offered by Company
CompanyGreen Vehicle % Discount on Rates
Liberty Mutual10
The Hartford3
21st Centuryn/a
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So, when you’re looking into electric car insurance reviews, one thing to look for is if they provide a green discount for your environmental consciousness.

You may even be able to get hybrid replacement coverage for your gas guzzler, which would replace it with a hybrid after your car is totaled.

By talking with green insurance consultants, you may even be able to bundle with your green home insurance for an additional discount, though the NAIC notes that this is generally only available on newer homes.

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The Relationship Between Trees and Eco Car Insurance

Trees absorb CO2 and convert it to oxygen; Every living thing can appreciate this. Some companies donate money to companies in the green business such as those developing alternatives to harmful fuels.

Other companies make a donation to green charities for every insurance policy that is purchased through them, some hoping to raise millions of dollars. There are companies that claim they will offset 100% of your car’s emissions at no additional cost to you!

Some eco-friendly insurance companies are also helping to teach drivers ways they can become more green-friendly. They may recommend green driving actions like:

  • Driving at lower engine speeds to help lower fuel usage
  • Accelerating slowly to use less gas
  • Driving at a steady pace so there is less braking and speeding up overall
  • Turning your car off if it is left idling for more than two minutes
  • Using cruise control
  • Checking your tire pressure
  • Turning off the AC
  • Removing roof racks in order to cut down on wind resistance

What about those discounts? Getting a discount on an eco policy can be done by something as simple as driving fewer miles each year. The green insurance company likes this not only for the environment but also because you are less likely to get into an accident the less you drive.

Every eco policy is different, so be sure to read the fine print carefully when considering sustainable insurance products.

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The Best and Worst Fuel Efficient Vehicles

If you currently are driving any of the following vehicles, you will not be eligible for an eco-friendly car insurance, as these are some of the earth’s worst offending vehicles:

  • Ram 2500
  • Bugatti Veyron
  • Ford E-150 Wagon FFV
  • Bentley Mulsanne
  • Mercedes-Benz G63 AMG

Some of these cars would need close to 2,000 trees planted to offset just a single year of their emissions! But what cars are eco friendly? If you are looking to make a switch then some of the top ranking fuel efficient cars include:

  • Toyota Prius
  • Honda Civic Hybrid
  • Ford Escape Hybrid

Driving these environmentally-friendly vehicles will help lower your premiums and help improve the air quality around us.

This video from HighGearMediaVideos talks a bit about what you need to know about hybrids.

You can still comparison shop online for eco insurance. Never go with the first deal offered, even if the company does “plant a lot of trees.”

Besides finding a nice green car insurance policy, you will want to be sure that your eco-friendly new car is completely covered and that you are getting a good deal.

There may be a company willing to do just as much at a fraction of the cost, but you won’t know that until you take a chance and shop around!

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What is the most environmentally friendly type of power for your vehicle?

How do cars become environmentally friendly? Well, it’s not with gasoline, that’s for sure.

There’s a big difference in electric car insurance vs gas powered coverage. A lot of that is because of the small market size that it comprises.The Environmental Protection Agency (EPA) notes that gasoline and diesel-fueled vehicles have historically accounted for over 99 percent of cars and passenger trucks sold. But, that number is increasing. With it, the insurance industry will change to be more accommodating for eco-friendly vehicles.

Why not start searching for eco car insurance right now by entering your ZIP code and comparing online insurance quotes now.

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