Conscientious motorists paying over the odds for green car insurance

Car insurance companies offering customers eco-friendly policies are raising their premiums by as much as 44 per cent over standard policies, according to new research by moneysupermarket.com.

It is becoming increasingly vogue for insurers to offer so called ‘green’ deals which include a stack of environmental bonuses such as carbon emission offsetting and discounts for eco-friendly cars.

A recent survey conducted by Prudential found that one in five motorists suffer from “green guilt”, and that men and those living in the south worry the most about the effect they have on the environment.

There are currently 30 million vehicles on the road in the UK and 74 per cent of motorists find it necessary to drive every day. Eco-friendly car insurance seems like the perfect way for those with worries to assuage their guilty consciences.

However there is often a financial sting in the tail of green premiums.

CIS offers to offset 20 per cent of its customers’ carbon emissions by investing money into renewable energy sources and reforestation schemes, but insurance for a typical Ford Focus driver is 21 per cent more expensive than the cheapest policies on the market.

Similarly More Than, of Royal & SunAlliance, offers discounts to motorists driving hybrid cars. Average coverage for a Toyota Prius hybrid car costs £597, however with Liverpool Victoria (LV) car insurance, the same vehicle would only cost £416 to insure. More Than charges 44 per cent more than LV.

Richard Mason, director of insurance at moneysupermarket.com, commented: “Drivers are increasingly concerned about their impact on the environment and in an effort to ‘go green’ may be tempted to opt for eco-friendly car insurance.

“But until insurers make green premiums more competitive, my advice is to shop around for the cheapest deal that meets your needs and give some of the money you save direct to eco-friendly causes,” he continued.

“Not only will you have the peace of mind that your charity is receiving the money directly, but you will get value for money on your policy.”

More Than recently introduced two new green insurance products as part of the government’s ‘We’re In This Together’ campaign encouraging consumers to fight climate change.

The first is a new policy that implements global positioning system (GPS) technology to monitor a motorist’s driving habits. A GPS device installed in the car will help reduce carbon emissions and fuel consumption by measuring speed, revs, acceleration and other factors in order to advise the driver on how to travel more efficiently.

The second is a new discount for all eco-cars such as hybrids, electric and alternative-fuel vehicles of up to 15 per cent, plus free carbon offsetting on 3000 miles worth of travel.

However Mr Mason has prompted More Than and other insurers to offer more competitive green premiums.

He pointed out that More Than “are in many cases very competitive for normal car insurance” and urged them to “review their premiums for eco-friendly cars”.