With the price of everything from utility bills to food rising, the news that motor insurance premiums are at an all-time high is not welcome. According to Sainsbury’s Car insurance Index, in the last 12 months premiums have risen by 5.8% from an average of £486.13 to £514.36.

This is the first time that the average cost of insuring a car has exceeded the £500 mark. Just how much of an increase you are likely to face depends largely on age, with younger drivers coming off better for a change. Although in absolute terms their premiums are the highest, averaging out at £1249.56, the percentage increase is only 2.47%. The age group to be worst affected is the over 65s who face an increase of almost 10%, taking their average to £368.09.

With the general costs of running a car on the rise as well, there has never been a better time to check that you are getting good value for money when your renewal notice comes in. By using a price comparison website you should be able to shop around easily and make sure that you are not paying over the odds.

Paying a lower premium need not mean that quality is sacrificed. Even some of the most competitive policies are now offering extras such as the provision of a courtesy car when your own car is being repaired by an authorised garage, new for old replacement of child car seats and compensation and support if you are involved in a car jacking or road rage incident.

Much has changed this decade as far as eco-friendly cars are concerned. A few years ago, were you sceptical about the viability of the environmentally-friendly car, your fears would certainly not have been misplaced. Then, a green or hybrid car would have cost considerably more to purchase and maintain than a conventional vehicle. Today, however, green cars are becoming increasingly popular. The Society of Motor Manufacturers and Traders has found that the number of environmentally-friendly cars currently in use in the UK has more than doubled over the last couple of years. In contrast, sales of sports utility vehicles have fallen by some 12%.

However, there is more to the switch to green cars than meets the eye. Whilst rising petrol costs and growing concerns about climate change are of relevance, hybrid cars can be advantageous in another way too. You could substantially reduce your insurance costs by switching to a green vehicle. For example, Co-operative Insurance offers a 10% discount to drivers with cars that fall within ‘tax band A.’ That’s the tax bracket for cars which produce less than 100g of carbon dioxide per kilometre. With More Th>n, you could receive discounts to reduce your total insurance bill by 15%. Nevertheless, green initiatives on the part of insurance companies go beyond just discounts. For example, a number of providers now allow you to choose garages that deal with products and spare parts made mainly from recycled materials.

So what does this mean for the consumer? Clearly there are considerable benefits to be had with an eco-friendly car. However, as ever, it is important to shop around for the best insurance deals, as savings on green cars will invariably differ between providers.