Lots of people can tell you how to go green. But did you know you can adopt a sustainable lifestyle AND save money on insurance? Take a look at the following ways that green choices can have benefits beyond reducing your carbon footprint.
Home insurance
First, did you know that many carriers offer green insurance coverage for your home? You could qualify for as much as 5% savings on your annual premium if your home is certified by Leadership in Energy & Environmental Design (LEED). Think 5% isn’t a big deal? The average U.S. homeowners insurance premium right now is $917. That means you could save around $50 on your premium just because you’ve chosen sustainability (keep in mind that you’ll also save on electricity, water and other recurring expenses). Find out which green standards were used when your home was built (or if you’ve recently invested in green renovations), and contact your provider to see if you qualify for reductions on what you pay.
If your home isn’t LEED-certified, you could still be eligible for green coverage. Under this, if your home is ever damaged or lost in a covered peril, your insurance company will help cover the cost of rebuilding with primarily green materials and energy-efficient products. This type of coverage offers sustainability for homeowners even after a loss, plus it could help you qualify for that green discount later by rebuilding under LEED’s standards.
But what if your home isn’t LEED-certified and your carrier doesn’t offer green insurance coverage? A sustainable lifestyle could still help you save on insurance.
- If you choose to live in a smaller, more efficient home as opposed to a large, luxurious mansion, you’ll likely consume fewer resources. Because the home is smaller, you’ll probably pay less for dwelling coverage.
- Standard home insurance policies typically consider environmentally-friendly nonsmokers to be a much lower risk to insure, primarily because having a smoke-free house lessens the chance of fire. Many providers offer a discount of up to 20% on premiums when no one in the house smokes.
- Updated plumbing, electrical and heating systems consume less energy and fewer resources, plus they could help reduce the risk of home accidents and claims, which often translates into lower home insurance rates.
- SmartHome automation systems help homeowners control temperatures in their homes in order to save on energy. Most SmartHome systems also include monitored security. Homeowners insurance providers often reward policyholders who have security systems with discounts of up to 10%.
- Home solar panels could help you qualify for a discount of as much as 3% on homeowners insurance, because insurance companies have found that environmentally-conscious policyholders are less likely to file claims. However, it’s important to note that you should let your insurance agent know anytime you make improvements to your home. Otherwise, you might not be fully insured in case of a covered claim.
Auto insurance
Home insurance isn’t the only place people who commit to a more sustainable lifestyle can find savings. Walking, biking or carpooling to work reduces carbon emissions. Your auto insurance rates also could be set lower because you’re not driving as many miles annually.
Insurance companies have found that owners of hybrid vehicles, in addition to being environmentally conscious, are more likely to be safety-oriented drivers. Also, since hybrid vehicles weigh about 10% more than their gas-guzzling equivalents, they are deemed safer by many insurance providers. For these reasons, a number of top providers now offer discounts of as much as 10% for policyholders insuring hybrid cars.
Article contributed by guest blogger Arthur Murray, who writes for HomeInsurance.com. Arthur has more than 30 years of experience writing for newspapers and magazines. He graduated from the University of North Carolina in 1979 with a bachelor’s degree in Journalism.