So called ‘green' policies up to 44 per cent more expensive.
Motorists trying to do their bit for the environment are being stung by expensive green policies, according to new research.
The findings of price comparison website moneysupermarket.com showed that those insurers boarding the ethical bandwagon to entice eco-friendly consumers are hitting them with premiums hiked by up to 44% over standard policies.
Several insurers including CIS and More Than have launched green motor insurance, the features of which include offsetting carbon emissions or offering discounts for eco-friendly cars. The providers also argue their products are good value for money.
While CIS promises to offset 20% of your carbon emissions by investment in reforestation and renewable energy sources, insurance for a Ford Focus driver costs 21% more than market-leading cover from LV=.
More Than offers a discount for hybrid vehicles, but this policy is significantly more expensive than alternative cover. For example, LV= quotes £416 for the environmentally-friendly Toyota Prius hybrid car, but for the same cover More Than charges 44 per cent more at £597.
Richard Mason, director of insurance at price comparison website moneysupermarket.com, said: “Drivers are increasingly concerned about their impact on the environment and in an effort to ‘go green' many may be tempted to opt for eco-friendly car insurance.”
“I predict more financial service providers will enter the green motor market, especially as more emphasis is given to climate change issues. But I urge these companies to be more competitive – More Than for instance are in many cases very competitive for normal car insurance, so I would urge them, and all other providers, to review their premiums for eco-friendly cars. However, with the maintenance costs so high on dual fuel vehicles, I cannot see premiums dropping significantly, especially with insurers such as RBS and Norwich Union going so far as to announce hikes in their premiums.”
