Coloring your insurance green can save you money

The insurance industry is slowly beginning to color itself green. Eco-friendly policies – often referred to as “green” – are a trend in car insurance and home insurance. In some cases, coloring your policy green will even save you money.

According to the Insurance Information Institute (III), there are more than 600 eco-friendly products and services now offered by 244 insurers, reinsurers, brokers and insurance organizations in 29 states.

Here are some examples of innovative green products, services and discounts available through your insurance company.

Car insurance:

• Usage-based car insurance: According to III, roughly two dozen insurers now offer these programs. Participating in this program requires the installation of a tracking device inside your car. It will track how many miles your drive and, in some cases, even the speed you drive. If you drive fewer miles than the average person, you will receive a discount on your car insurance.
• Hybrid discounts: Some car insurance companies offer premium discounts up to 10 percent for drivers of hybrid vehicles, according to III. A similar discount may also apply to hybrid-electric boats and yachts.

Home insurance:

• Some insurance companies offer discounts if your home meets certain “eco-friendly” efficiency and sustainability standards. For example, this includes homes that have been certified through the Leadership in Energy and Environmental Design (LEED) Green Building Rating System, developed by the U.S. Green Building Council.
• Some insurers offer a home insurance endorsement that guarantees that if your home suffers damage, your repairs will be made with eco-friendly materials.
• If you generate your own geothermal, solar or wind power and sell its surplus energy back to the local power grid, some insurance policies will cover the income lost when there is a power outage caused by a covered peril.