This website uses cookies to improve user experience. By using our website you consent to all cookies in accordance with our Cookie Policy. Read more

Green car insurance responds to needs of eco-friendly motorists who save £44 million a year

31 January 2008 / by Rachael Stiles
Motorists who opt for green cars are still not a common occurrence, predicted to account for just 0.2 per cent of all registered vehicles in the UK in 2008, but if more drivers switched to green then they could be saving not just the environment but also as much as £300 a year each.

By choosing a car which has low emissions and is more economical, emitting an average of 17 per cent less CO2 than fuel-heavy equivalents, green motorists reap the rewards, cutting their fuel bills by an average of £165 a year, and their road tax by £125 each.

"Going green can help drivers stay out of the red", according to new research from, which found that the number of green cars bought in 2007 grew 70 per cent from 10,000 to 17,000. The research compared the running costs of the six most environmentally friendly cars with their less friendly counterparts.

The efforts of the motoring industry to cut emissions and reduce the damage being done to the environment has resulted in a 9.7 per cent reduction of CO2 emissions from new cars in the last few years, the research found.

The insurance industry has also responded to the growing need for green alternatives, providing insurance products that offer to reduce consumers' carbon footprint by contributing to green causes and investing in the development of greener technologies, thus offsetting the customer's car emissions. Some providers offset a portion of the emissions while others are 100 per cent carbon neutral.

Ashton Berkhauer, insurance expert at comments: "A vehicle’s green credentials are fast becoming a major selling point when it comes to buying a new car. However, it is not simply a case of motorists blindly jumping on to the green bandwagon. With fuel prices soaring to a record high, motorists are increasingly becoming attracted to these fuel-efficient, lower-tax green vehicles, finding them to be kind on their pockets as well as on the environment."

Mr Berkhauer concluded: "Our research indicates that eco-insurers are becoming increasingly competitive. It is not only green drivers who benefit from the surge in green products - motorists driving vehicles with slightly higher emissions should not rule out green providers when searching for an insurance policy."

© Fair Investment Company Ltd