First it was banks that felt they had to go green to keep their customers happy. Now car insurers are joining in. We all know that driving our cars is bad for the environment and more and more of us are walking or cycling where possible. However, sometimes it’s unavoidable that we have to depend on our car to get us from A to B. Not all of us are able to change our cars at the moment to the greener hybrids and low-emission vehicles, but with eco-insurance we can now drive with a slightly clearer conscience. Granted it can’t prevent the emissions into the atmosphere, but it can offset the damage by investing in reforestation and other educational programmes at home and abroad.

ibuyeco searches for competitive quotes from 30 big name insurers including Norwich Union, Legal and General and Churchill. It prides itself not only on saving the customer money but, in addition, offsetting 100% of a car’s CO2 emissions. This is done by adding a small offset fee to the premium. The fee is calculated in accordance with DEFRA guidelines which take into account factors such as engine size, the type of fuel consumed and the annual mileage. The offsetting is done in conjunction with The Carbon Neutral Company (TCNC), one of the world’s leaders in the field of carbon offsetting and climate consultancy.

ibuyeco is not alone in offering carbon offsetting, although many of its competitors offset as little as 20% of the emissions. Co-operative Insurance was the first to launch eco-insurance in 2006 and, according to a spokesperson, they have had a very positive response from customers of all age groups up and down the country. It seems that once we realise that this environmentally friendly insurance is not going to hit us hard in the pocket, we are all keen to do our bit for the planet. Not only does the Co-operative Insurance company offset in part the carbon emissions of the vehicles insured, but they also require their approved mechanics to be environmentally aware, for instance in matters such as waste management. They even offer discounted premiums for drivers of hybrid petrol and electric cars, as well as high fuel efficiency vehicles. Customers are also surveyed regularly on the ethical stance which they wish the Co-op to take, offering a real say in the company’s investment policy.

In August of last year, a new car insurance company, The Green Insurance Company, was launched, to make it easier for drivers to go green. It not only offsets 100% of the CO2 emissions at no increased charge to the motorist, but also undertakes to invest five percent of its annual profits in environmentally sustainable projects. It has also purchased a fleet of hybrid Toyota Prius cars for use by its staff.

These are just some of the insurers offering a green alternative to the damage done by our driving habits. It seems that we now have very few excuses not to do our bit and, best of all, it need not cost an arm and a leg.

As we are urged to “think green” when planning our holidays, more and more of us are choosing to travel to the continent by car. Three million of us are headed for Europe this year and yet a worrying two thirds of motorists are unaware of what insurance cover they have for driving abroad. Even more worryingly, 10% of us think that our travel insurance will cover motoring catastrophes.

Even if you have a fully comprehensive policy at home, you cannot assume that this applies when you are driving abroad. All policies under EU law are obliged to offer third party protection, so any damage to another vehicle or person is covered. This is not much consolation, however, if you write your own car off or have it stolen abroad.

It is important to check the small print of your policy carefully, as there are all sorts of variations on the level of cover offered and the costs, if any. Some policies will extend the comprehensive cover free of charge, whilst others require a payment which may be a one off fee or may vary, according to the duration of the holiday. There is often a limit to the number of consecutive days or total days in the year that you can be covered for driving abroad, so make sure that you are aware of the limitations of your policy. eCar and Saga are two of the very few insurers who offer unlimited days abroad, free of charge. If you are a regular driver abroad it is well worth taking this into account when choosing a motor insurer – make sure you are comparing like with like as charges for extending comprehensive cover can soon add up. Zurich, for instance, charge up to £510 for extending cover from the free 60 days to the maximum 180 days allowed.

When parents get sick of running a taxi service for their offspring, they live for the day when the kids start driving. Then that day comes and you realise that there are two major problems. Firstly, no matter how careful they seem behind the wheel when you are sitting with them, how do you know what they do when they are on their own, or with a car full of friends? Secondly, you practically have to sell the family home to pay for their insurance, especially if your offspring happen to be boys.

It now seems that a little spying device may be the solution to both problems. The Safety Center, manufactured in America by Green Road, relays data to a website, where parents can monitor their children’s driving. Whenever the device detects a dangerous manoeuvre, the website is alerted, as is the driver. Taking a corner too fast or pulling out at speed when overtaking, are the types of behaviour which the Safety Center seeks to highlight. Breaking the speed limit is not flagged up per se, although the website will indicate the average speed per journey, which will enable the mathematically sound to work out whether the driver has been speeding.

Staffordshire County Council is planning a trial of the device, as part of its campaign to improve safety in teenage drivers – currently 14 young drivers and their passengers are killed on the UK’s roads each week. Green Road has approached the insurance industry to see how their device could lead to lower premiums for young drivers who, by using it, can prove their safety credentials. Green Road can boast of a 54% reduction in crash rates and a 50% reduction in dangerous driving amongst its customers.