Green Cars Makes Auto Insurance Agents See Green

April 18, 2011

Most consumers, even those who wouldn’t fit the traditional branding of “tree hugger” have become more aware of the environment these days.  Of course, at the end of the day this is to the betterment of our planet and our quality of life, but the fact remains that it’s adversely affected the automotive industry to some degree.

While gas-chugging SUVs were popular back in the heady years of the late 90s and early 2000s, increased environmental awareness coupled with the rising prices at the gas pump has correspondingly increased the desire for gas conservation.

Subsequently, the desire for smaller, more gas efficient cars has skyrocketed over the last decade.  In addition to this desire, there has also been considerable development in the hybrid auto market to satiate the demand for more eco-friendly cars.  As you may already be aware, a hybrid car is one that runs off of both electricity and gasoline, thus being more ecologically friendly while also saving gasoline.  These cars tend to be more expensive than the traditional oil-burning models, though, and many consumers feel excluded from the hybrid market because of this.

The good news for insurance salesmen is that you can help individuals who are thinking about purchasing hybrids but are unsure about footing the cost by alerting potential hybrid customers of insurance discounts that come with purchasing hybrid cars.  This is because many companies have determined that those who buy hybrids are less likely to have accidents and file claims.

 

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Not only that, but the popularity of hybrid cars is expected to rise.  J.D. Power and associates have estimated that 5.2 million hybrid – and battery powered electric – cars will be on the road by 2020.  As of 2010, hybrid cars account for nearly 2.2% of total market share.

In addition to benefits given to automobile owners who decide to go green, agents who sell home insurance should be aware that there are also insurance discounts given to home and business owners who decide to go eco-friendly.  There are lots of cuts available for those who decide to get energy-efficient upgrades to homes and businesses.  One reason for this is the increasing concern that climate change may have on the world and companies want to reward individuals who take steps toward lessening their individual carbon footprint on the planet.

So if you’ve got a client on your hands who is considering going green but is worried about the corresponding costs associated with doing so, be sure to make them aware of the insurance discounts that could help them waylay those costs.  Going green is good for everybody – the insurance agent, the buyer, and also the planet!

About Troy Wilson