Posted September 21, 2013 | Filed under topic Auto Insurance Buying Tips
What Is An Eco-Friendly Car?
Before you start searching for common tricks insurance companies use during eco-friendly car insurance policies, you should know if your car qualifies as an eco-friendly car. An eco-friendly car consists of those cars that claim to be “green” or “eco-friendly.” They are usually ethanol, bio-diesel, and hybrid/electric cars. If you have a car that classifies itself as “green,” it usually qualifies as an eco-friendly car with common insurance companies.
Insurance rates are claimed to be cheaper with an eco-friendly car. This, however, is not true at all. In fact, rates tend to be the same as a regular car.
Here’s the trick: insurance companies tend to offer a percentage discounted from total rate for eco-friendly cars, but the rate for the coverage itself tends to go up. For example, a company may offer a 5% discount of a total rate for insuring the eco-friendly car, but the cost for the coverage will go up. This means that a rate of $100 will go up to $125, and then you get a 5% discount from that $125, thus leaving you with $118.75. This is actually more than the original coverage cost!
Once again, this is a trick that companies use when making eco-friendly car insurance policies. Beware of this common trick that insurance companies use to “pull the blanket” over your head. It may seem appealing to many people who don’t know the trick, but for those who are informed of this trick are aware of it when signing a policy. This is a relatively common trick, although it is extremely mean and “dirty,” so to speak.
The reason that companies try to put a mask on this trick by saying that the parts for the eco-friendly car cost more than the average car. Thus, companies claim they must charge more for insurance because repair for the vehicle costs more.
The common myth that eco-friendly cars cost less to insure has been broken. We now know that all-in-all, it will probably cost about the same as a regular car to insure. They usually cost about the same to insure, but sometimes it will be a little more or a little less. It all depends on the insurance company that you’re getting insured with.
Getting an eco-friendly car can still save you money in the gas tank. Don’t be discouraged to get an eco-friendly car. They are still good for the environment as well as gas mileage.