Insurance Related Issues

Motorists would go green if the price was right

Kay Murchie http://www.financemarkets.co.uk 29.04.2008

‘Motorists can pay £50 more to insure a ‘green’ car’

Research by Tescocompare.com, has established that 2 million motorists claim to be driving an environmentally friendly car.

However, Tescocompare.com, discovered that more than 21 million are driven by financial incentives and would consider converting to a ‘green’ or low-emission car if the price was more competitive and the Government offered incentives for doing so.

If road tax was reduced, 62% would be persuaded to go green while 25% could be convinced if there was a steep rise in fuel prices. 36% would consider going green if the incentive was cheaper parking fees.

Paul Baxter of Tescocompare.com said the message that the British driver is sending to the Government is empathetic. They are happy to embrace green driving but want to be rewarded for doing so. Penalising them for not being green is much less of an incentive.

Mr Baxter added that he was disappointed that the Chancellor did not look more widely at the cost barriers for purchasing green cars in the recent Budget and consider cutting Insurance Premium Tax for green cars as an added incentive.

Our research clearly shows the nation’s motorists are much more likely to go green if it saves them money as well as saving the planet, concluded Mr Baxter.

Tescocompare.com established that on average, motorists can pay £50 more to insure a ‘green’ car.