The UK's first cashback scheme to encourage greener driving has been launched by the online insurance provider, yesinsurance.co.uk.

The scheme provides a £40 incentive for owners of hybrid vehicles who take out motor insurance with yesinsurance.co.uk, the company said.

Half of the £40 incentive will be paid back to the driver of the hybrid vehicle, whilst the other half will be donated to the carbon offsetting organisation Climatesure.

"The cashback scheme forms part of a programme of activities which we hope will focus people's minds on the wider social implications of motoring," said Paul Purdy of yesinsurance.co.uk.

"We believe we have a responsibility to help people minimise the impact that their motoring has on the environment. Motoring is a major contributor to carbon emissions and global warming and we want to help people reduce the amount of greenhouse gases that they produce. The move to reward drivers of hybrid vehicles is a first step. Longer-term we aim to broaden the scheme to include other types of fuel-efficient low-emission vehicles."

In addition to being more fuel efficient, hybrid vehicles such as the Toyota Prius also benefit from a lower level of car tax and are exempt from the London congestion charge.