Possible insurance breaks for eco-friendly cars

28 April 2006
Leading insurance company More Than has said that they are looking at ways to add to the rewards available for drivers of 'green' cars by providing improved insurance deals.

According to the insurers, at present there is no financial motivation to own a hybrid car as far as insurance is concerned but this could be something it would consider introducing, aiding the drive to encourage people to own more environmentally friendly vehicles.

Recent research from More Than showed that up to one in six people would consider switching to a hybrid car, given the right incentives to do so.

"At the moment, insurance policies for hybrid cars and for petrol cars are the same," said Keith Maxwell, motoring insurance manager for the company.

"We are looking at how we could reward people who choose an eco-friendly car, in terms of insurance," he continued. "The main way of rewarding people would be from an incentive such as a premium discount."

These latest possible incentives for environmentally friendly transport come soon after Gordon Brown's budget, when he introduced road tax breaks for owners of hybrid cars. This move reignited the ongoing debate over how to encourage more people to make the switch.

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