Drivers would go green to stem rising car insurance premiums

01 May 2008 / by Rachael Stiles
More than a quarter of drivers have experienced a rise in their car insurance premium in the last year, and many drivers say they would go green for cheaper motoring.

MoneyExpert.com has found that one in four drivers pay more for car insurance than they did last year, with the average policy rising by six per cent to approximately £682, and experts predict further rises of as much as 10 per cent by the end of the year.

The comparison site is warning consumers that if they do not shop around and compare car insurance quotes from a number of providers they could be paying more than they have to for their premiums.

Of those questioned, 28 per cent of drivers said that they accepted the increase without question, and just 30 per cent moved to another insurer to find a cheaper deal when they were faced with such increases.

"It is worrying that when faced with an increase in car insurance premiums of more than double the rate of inflation so many drivers just shrug their shoulders and accept it," said Sean Gardner of MoneyExpert.com.

"The pressure on family finances is building from all sides with mortgages and supermarket bills rising. Any chance to save some cash should be grabbed with both hands."

Meanwhile, Tesco Compare Car Insurance has found that two thirds of motorists would consider buying a more environmentally friendly car if it would lower the cost of motoring.

Two million motorists claim to already drive a 'green' car, but a further 21 million said they would consider it if there was a price incentive for doing so.

When asked what would persuade them to buy a green car, motorists revealed that their decision would be ruled by saving money more than saving the environment, with 62 per cent saying they would be swayed if car tax was reduced for greener vehicles.

"The message that the British driver is sending to the Government is empathetic - they are happy to embrace green driving but want to be rewarded for doing so. Penalising them for not being green is much less of an incentive." said Paul Baxter of Tescocompare.com.

Tescocompare.com's research found that green car insurance can be more expensive because of the additional costs of repair, and that if the Government reduced the cost of road tax for green drivers it would offer more incentive. It recommends comparing the market to find the best car insurance deals.

© Fair Investment Company Ltd