Use of Alternative Energy May Reap Insurance Discounts

Californians who strive to save the planet through use of alternative resources may not only save money on energy, but can save on insurance, according to the Insurance Information Network of California.

Nearly 4,700 Californians use solar energy in their homes, and more than 134,000 drivers in the state have purchased hybrid vehicles.

“Environmental awareness and action is more than just good for the planet — it can be good for your wallet,” said Candysse Miller, IINC executive director. “Not only can you save with reduced energy bills, but some insurers are offering insurance packages to address this growing market segment.”

With incentives ranging from tax breaks to free parking in some locales, the future for alternative energy looks even brighter as a growing roster of insurers start offering consumer incentives.

Some insurers offer premium discounts of up to 5 percent for hybrid vehicles. Insurance policies for hybrids are the same as for any other car, however, some insurers will automatically replace a hybrid’s battery if it has been damaged in an accident — a cost of up to $3,000 — rather than risk the repair of this new technology.

Discounts are also becoming available for homeowners who install solar systems to replace their traditional electricity service. While not all policies carry solar incentives, traditional homeowner policies nonetheless do typically cover damage to solar panels. But remember, the maintenance of the panels and the roof is the responsibility of the homeowner.

Because of the wide variety of insurance options available, IINC recommends consumers shop around for and study the choices available.

IINC is a non-profit, non-lobbying insurance communications association. For more information, visit www.iinc.org.

Source: IINC