Financial Advisor

How Does Green Car Insurance Work?

By now we all know that car emissions are one of the biggest contributors to the high levels of carbon dioxide that are released into the atmosphere each day. In the UK, around 20 percent of carbon emissions come from road transport.

Of course, there are ways to reduce the levels of carbon emissions that come from driving vehicles. Driving less is certainly one of them. Using public transport, buying more fuel efficient vehicles and car pooling are other ways to begin to tackle the problem.

But for most people, there are times that they cannot avoid using a car. When they do, carbon emissions will be released into the atmosphere. But, there is something that can be done to counterbalance the carbon emissions from a vehicle. It’s known as carbon offsetting.

Carbon Offsetting

When a driver produces carbon dioxide emissions but attempts to compensate for those emissions by producing equivalent carbon dioxide savings, the process is known as carbon offsetting. This reduces the impact of the driver’s car travel.

Since it is not possible for drivers to cut out their carbon emissions completely, carbon offsetting is one way to counterbalance the negative effects that car emissions have on the atmosphere.

There are several ways that drivers can carbon offset. One of the easiest ways is to purchase “green” car insurance and allow their insurance company to do it for them.

Green Car Insurance

How exactly does green car insurance work? Here is a quick explanation.

The car insurance company will estimate the mileage that the insured car will travel in a year.
They will then take into consideration the amount of carbon emissions the specific car will emit in a year based on the make, model, and year of the vehicle.
The insurance company adds a charge for carbon offsetting into the premium and donates the money to an organization that does carbon offsetting.

The ideal end result is that for every kilogram of carbon dioxide a car emits, the driver pays for the same amount of carbon dioxide to be offset by projects such as reforestation, energy efficient initiatives, and renewable energy initiatives. When there are more trees to absorb the carbon dioxide emitted from vehicles, more energy efficient products using less fossil fuels, and more alternative energy forms such as solar or wind power, it lessens the negative effects of harmful emissions from cars.

Benefits of Green Car Insurance

Green car insurance is not mandatory, so why would any motorist pay more for this type of cover? Drivers who are concerned with reducing the impact that their vehicles make on the environment benefit in several ways.

A real, positive difference in the effects of their vehicle’s emissions is achieved.
The insured have the opportunity to participate in carbon offsetting programs that they may not have had the ability to use in any other way.
The insurance company takes care of selecting the carbon offsetting programs and distributing the money, taking the burden off of the drivers to figure it all out.

Read more about green car insurance companies like ibuyeco, together with customer reviews and money saving tips at UK Insurance Index.

Discover how ‘green car insurance’ can protect you from everyday motoring risk whilst helping to protect the environment at the same time.

Tag: green car insurance, eco