What Is A Green Car Discount?

Green car discounts are offered to drivers of eco-friendly cars. Because these drivers appear as less of a risk, companies including Liberty Mutual and Allstate offer green car discounts.

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A former insurance producer, Laura understands that education is key when it comes to buying insurance. She has happily dedicated many hours to helping her clients understand how the insurance marketplace works so they can find the best car, home, and life insurance products for their needs.

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Written by Laura Berry
Former Insurance Agent Laura Berry

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® Joel Ohman

UPDATED: Jun 2, 2022

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Here's what you need to know...

  • Choosing to drive a green or eco-friendly car could qualify you for a discount on car insurance through select car insurance providers
  • Some auto providers believe that drivers who select green cars are more responsible and should qualify for lower auto insurance rates
  • Green cars are statistically involved in fewer auto accidents than traditional vehicles
  • Companies that offer this discount include Liberty Mutual and Allstate

With rising gas prices and concerns about the effects of fossil fuels and related pollution on the environment, many drivers are increasingly interested in buying a green car.

A green car may be a hybrid car or an electric car, and it may help you to save money on energy costs on a regular basis.

Some green cars may also qualify for a special tax deduction for an even greater financial benefit.

You may not realize it, but your green car could also help you to save money on your auto insurance premium through a green car discount.

Each auto insurance provider is unique, but some providers offer a green car discount that can save you money if you drive a qualifying hybrid or electric vehicle.

Use our FREE quote tool to find insurance rates in your area!

Saving Money on Car Insurance With a Green Car Discount

While many people make the switch from a gas-guzzling car to an eco-friendly model in part to protect the environment, there is often usually a financial component in mind as well.

You understandably want to save money on your fuel expense when you make the switch to a green car, and you may also be able to save money on your auto insurance through a green car discount.

However, you may be wondering why some auto providers offer a green car discount to their customers.

Auto insurance companies typically determine their rates based on their overall determination of risk for each individual driver.

They analyze everything from your age, gender, and driving record to statistics regarding your vehicle, zip code, and more to determine how likely you are to be in an accident and what the cost of that accident may be to them.

Some auto insurance companies have found that drivers who have chosen to drive a green or eco-friendly car are generally more responsible and aware than those who drive other makes and models, and they offer a financial discount on their rates as a result of this simple factor.

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Analyzing Green Car Accident Statistics

Other car insurance companies offer a green car insurance for different reasons. Statistically, green cars are less likely to be involved in car accidents.

The number of car accidents they are in is reduced as well as the cost of the damage in these accidents.

One reason may be because drivers may be more fuel-conscious when driving a green car and may drive at a slower speed in an effort to conserve gas.

Another reason may be that green cars simply do not usually have the same speed or acceleration rate as other traditional vehicles have.

Finding an Insurance Company That Offers a Green Car Discount

If you make the decision to buy a green car, you understandably want to take advantage of every opportunity possible to save money on your car insurance policy.

Therefore, you may be wondering which providers offer a green car discount that you could qualify for.

Only a handful of reputable providers offer this discount, but you should remember that this is not the only factor to consider when you are shopping around for a new auto insurance policy.

When you are choosing an auto insurance provider to buy your green car coverage from, you first need to confirm that the provider has a great reputation and is financially strong. You can easily research these details online.

Eliminate any auto insurance companies from consideration that rank poorly in these areas, and only reach out to the insurance providers that have the highest rankings in these areas regardless of whether or not they offer a green car discount or not.

Other Car Insurance Discounts You May Qualify For

Remember that a green car auto insurance discount is just one of many auto insurance discounts that you may qualify for that could save you money, and because of this, it should not be a limiting factor to consider when you are shopping for new coverage.

Keep all of your options open if you want to identify the best possible deal on your green car insurance policy. Some of the other car insurance discounts that you may qualify for through different providers include:

  • A new car discount
  • A safety features discount
  • An infrequent driver discount
  • A good driving record discount
  • A senior citizen discount
  • A good student discount

More than that, there are other exceptional ways for you to save money on car insurance. For example, you could:

  • Ask for a higher deductible
  • Adjust your coverage limits and types
  • Move to a zip code that has more affordable auto insurance rates
  • Buying an Eco-Friendly Car

You may currently be comparing different types of eco-friendly cars, such as bio-diesel vehicles, hybrid vehicles, and purely electric vehicles.

If you are preparing to buy a new green car soon, now is also the time to start shopping around and comparing rates on different makes and models. This can help you to identify a car that is affordable to buy as well as to own and operate with affordable car insurance. In addition, with the recent car inflation on gas models and rising gas prices, a green car will likely save you money in the long run.

By shopping for rates up-front, you can have a great idea on the price of car insurance cost before you take ownership of your new vehicle.

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Getting Insurance Quotes on Several Models

Ideally, you will request at least three to four quotes for several makes and models that you are thinking about buying. This can take considerable time and effort, but you may save time when you complete this process online.

Remember that you should repeat the shopping process approximately every six months to ensure that you always have a great rate for your green car insurance.

After you have determined which green car you want to buy, finalize your insurance plans. Remember that it may be illegal in most areas to drive a new car without insurance. You may need to provide your dealer with proof of coverage at the time of purchase.

Now is the time to begin looking for a green car discount and comparing rates for your green car insurance. Use our FREE comparison tool to get started!


  1. https://energy.gov/science-innovation/energy-sources/fossil
  2. https://www.statefarm.com/simple-insights/saving/these-7-factors-determine-car-insurance-premiums
  3. https://cdan.nhtsa.gov/stsi.htm
  4. https://www.allstate.com/tools-and-resources/car-insurance/electric-vehicle.aspx
  5. https://www.forbes.com/sites/jimgorzelany/2017/02/14/the-greenest-cars-for-2017/#71364ad4ecf1
  6. https://www.thebalance.com/understanding-minimum-car-insurance-requirements-2645473

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