Eco policies not so economical

Green policies are expensive, stinging motorists who are trying to be environmentally conscious, says new research from price comparison website moneysupermarket.com. The research has found that insurers who offer ethical or eco-friendly insurance policies are raising prices by up to 44 per cent more than standard policies.

For example, CIS and More Than offer green motor insurance which offsets carbon emissions and offers discounts for eco-friendly cars, and they argue that their insurance products represent good value for money. However, moneysupermarket’s research suggest that the CIS green cover for a Ford Focus is 21 per cent more expensive than the market leading cover. And the More Than discount for hybrid vehicles is still 44 per cent more expensive than the market leading policy.

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. But until insurers make green premiums more competitive, my advice is to shop around for the cheapest deal that meets your needs and give some of the money you save direct to eco-friendly causes. Not only will you have the peace of mind that your charity is receiving the money directly, but you will get value for money on your policy.

He predicts that more financial service providers will enter the green motor market, as more emphasis is given to climate change issues, adding: ‘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.’