Do Green Cars Reduce Your Business Insurance?

The Mile High City of Denver, Colorado 80212 is a great place to call home. There are many things to do, including visiting the US Mint, where money is actually made. For business owners, getting around, it is costly in a bigger car, so adding fuel efficient cars to their fleets is a big deal to save on costs. Although fleet managers save money on fuel when they purchase smaller vehicles for their fleet, what affect does green cars have on a company’s insurance costs?

Green Cars and Insurance

Green cars are cars that are more fuel efficient. They are typically hybrid cars that use a combination of gas and battery or electric to operate. Many fleet managers are purchasing these cars because they can save tremendously at the pump and they like the idea that they are reducing their carbon footprint, but they don’t save you on the cost of your insurance. In fact, with very small cars, the cost of insurance is more.

Small Cars Have High Insurance Premiums

Small cars cost more to insure because they present a few risks to the insurance company. For most insurance companies, the fact that they are so small presents the most risk. Individuals in an accident in smaller cars sustain the most damage. For your business that means that it would cost more insurance dollars to make you whole if you or your employees are in an accident.

Coupling the fact that commercial insurance is higher because businesses travel during peak driving times of the day, with the fact that smaller cars are less durable, and you have the potential to experience major losses. The best vehicle to save money on gas and insurance premiums are minivans because they are durable and they consume less gas when traveling around.

Before you decide on the next car to purchase for your fleet it is important to speak to licensed insurance agents. They can provide commercial insurance quotes to ensure that your business is getting the best value when it comes to insurance.