How Cycling to Work Can Help You Save Money on Car Insurance

Car insurance is a necessary expense for professionals who must use their personal vehicles or company cars to conduct business. The government and many private environmental organizations are actively looking for ways to generate programs that have a daily impact on reducing pollution and maintaining health. Driving company vehicles less, and healthier employees who exercise by cycling to work can create more revenue for small and large businesses. Employees and the purchasing public may see American businesses that embrace government sponsored green programs as being environmentally responsible.

The “cycle to work” program has been implemented in the United Kingdom. This is a government program established to lower the amount of air pollution and increase health in citizens who cycle to work. Employers are able to loan out bikes and safety equipment as part of a tax free benefit.

There is no initial or upfront reduction in salary to participate. Some employers will require a portion of the bike costs to be repaid. This is done in the UK through a salary sacrifice agreement. It is a type of lease that employers use to cover costs for tangible items that complement your job. Examples of types of items covered are bicycles, laptops, company car, and mobile phones. Many companies give you access to view the account at all times, to view their amount of contribution toward these expenses.

This green initiative allows employees to visit local bike shops and select a style of bike best suited for their commuting needs. There are electric bikes, folding bikes, and a variety of safety equipment pieces available. Safety options include helmets, bike lights, and reflectors. The bike shop writes a detailed quote with all of the items the employee is requesting. This paperwork is then hand carried to your employer. It may take a few days for the quote to become approved.

Your employer receives an invoice for the bike, and a paper voucher is mailed. Upon receiving the voucher in the mail, you can visit your local bike shop to pick up your bike and safety equipment as stated on the voucher. The bike shop then turns in the paperwork to one of the many independent companies that work with the government as facilitators.

If the “cycle to work” program were initiated here in the United States, many insurance companies would reduce your car insurance rates. One employer who embraces a cycle to work program, can influence hundreds of employees to decide to change how they commute as well as how they live. This can drastically lower the amount of car insurance claims processed by the insurance company.

Commuting each day with a bicycle reduces the amount of wear and tear on your vehicle. Public trains and buses can help navigate downtown and urban areas quickly. Many bikes fold up to allow you to take them onto the bus or train with you. Cities are equipping their buses and trolleys with front bike racks.

These racks quickly and easily secure your bike while you ride on public transportation. Once you arrive at work, the bike can be folded or secured with a high security bike lock. The main reason people commute five days a week is to earn income. Reducing car insurance rates through government programs that work with employers to reduce transportation costs can have a significantly positive impact on American society.

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