InsuranceHotline: Savings for Going Green

Society as a whole has been and is continuing to affect the natural environment. While it’s difficult for most people to make radical changes in their habits and lifestyles, there are small ways through which the effects can be decreased. In addition to helping the planet, you may also find financial savings.

Going Green Brings Insurance Discounts

Certain insurance companies are willing to reward you if you ‘Go Green’ by owning a hybrid vehicle. In an effort to encourage drivers to consider hybrid vehicles, insurance companies are offering additional discounts for choosing the more environmentally friendly option. Additionally, driving less reduces your carbon footprint and decreases your risk level since you’re on the road less frequently. However, the end result of distance changes on insurance savings is somewhat limited.

In some areas there is a standard program that charges insurance based on the amount driven, known as PAYD.

What is PAYD car insurance policy?

PAYD refers to the ‘pay as you drive’ insurance policy. It is sometimes also known as mileage verification insurance. This policy suggests some factors according to which the driver pays for insurance. These factors include:

  • Mileage
  • Time of the day
  • Time spent driving over a specific period
  • Speed
  • Types of roads used

How does ‘pay as you drive’ work?

This insurance policy requires accurate assessment of driving usage. For example, if the insurance policy is based on mileage then data can be measured by installing a tracking device inside the vehicle. Such a device will log data on a real time basis or it can also be stored and retrieved later. Some insurance companies use an estimate, or data provided by the driver.

Payment options also vary according to the insurance policy you wish to take. Insurance companies are introducing different ways of payment in order to promote the PAYD system. For example, companies are allowing their customers to buy miles in advance and top up over time. This program is still in its early stages in Canada, but is on track to becoming more popular around the world.

Go Green Buildings

In addition to auto insurance, you may also be able to save on home insurance. Traditionally energy efficient designs have targeted commercial buildings. However, widespread coverage of building techniques and benefits has expanded the market to residential units. LEED, the Leadership in Energy and Environmental Design, is globally recognized as the authority on certifying green buildings. Green homes sustain less damage than conventional buildings due to their building material and techniques. Without having to rebuild a home, consumers can install air conditioners and furnaces that are more efficient as a way to join the efforts.

All in all, insurance companies are doing their part in promoting green initiatives. What’s important to note, though, is that a ‘green discount’ may not necessarily result in the lowest rate possible for you. Therefore, it’s still best to shop your rate as you normally would, and who knows, you may end up being environmentally friend and enjoying even more savings.

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