Car insurance: Costs cut for 'green' drivers

Monday, 22 May 2006

Car insurance is expected to tumble for motorists driving eco-friendly cars, after leading car insurers prepare to slash their premiums.

A new poll has revealed that some 74 per cent of British drivers are concerned by the rise in petrol prices, with some 22 million people admitting they would switch to a hybrid car if it were cheaper to run than normal motors.

And this may soon be the case, as motorists in the UK driving hybrid cars could be offered a discount on their car insurance under new plans.

Motorists will also be able to benefit from reduced car tax if they drive hybrid cars, as announced in the 2006 Budget.

Car insurance provider More Than is one of the first to cut its premiums for 'green' drivers, although others are expected to follow, with the insurer's survey claiming some 58 per cent of Britons would consider switching if they could benefit from a cheap car insurance quote.

Keith Maxwell, head of motor insurance at the company, said: "Green motoring is going to be a massive growth area for the car industry as petrol prices continue to rise and concern over global warming grows.

"We want to financially reward drivers who are taking steps to do their bit for the environment."

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