Monday, September 08, 2008

From the P&C Files: "Green" Insurance

Got an email the other day from Cody Barbierri with Plymouth Rock Assurance Corporation. PRAC writes auto insurance for drivers in New England, marketing through independent agents (Yay!). Cody's email included a press release touting a new PRAC initiative:
"Plymouth Rock Assurance Corporation today announced it is the first automobile insurer in Massachusetts to reward its new and renewing policyholders with lower rates for “going green,” by driving less. Committed to reducing emissions and helping customers find new ways to save on their insurance policies, Plymouth Rock will lower rates for customers who drive fewer miles than the average customers in their geographic area."
Actually, they may be underselling themselves: they may well be the first carrier in the nation to offer this kind of incentive (and I'm sure our readers will let us know if I'm wrong on that). The program could save low mileage drivers as much as 15% on their auto insurance premiums. Not too shabby.
It works like this: Bay State drivers are subject to annual vehicle inspections, one facet of which is current mileage. PRAC insureds apparently give state DMV officials permission to share this info with the company, which can then confirm whether a given insured is eligible for the new "green" discount.
Be interesting to see if this idea catches on.
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