Green car insurance is 'poor value for money'
Tuesday, 27 Mar 2007 16:44
Many drivers are paying over the odds for 'green' car insurance policies, new research shows.
Despite an increasing number of motor insurance providers offering 'green' policies, most packages are uncompetitive and are up to 44 per cent more expensive than standard premiums, MoneySupermarket.com finds.
In fact, the price comparison website concludes drivers could do more to help the environment by remaining with their standard car insurer and donating the price difference to an environmentally-friendly charity.
"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," said Richard Mason, director of insurance at MoneySupermarket.
"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."
With an increasing focus on climate change and carbon emissions, Mr Mason predicted more financial service providers would enter the 'green' market, but urged companies to be more competitive.
More Than and CIS are two companies that have recently launched 'green' motor insurance, which offers perks such as carbon offsetting or discounts for eco-friendly cars.
However, while More Than is competitive for standard policies, Mr Mason explained their 'green' package charges 44 per cent more than the market-leader to insure a Toyota Prius.
CIS also offers poor value for money on its 'green' premium, MoneySupermarket finds. For the privilege of having 20 per cent of their emissions offset, drivers pay 21 per cent more than those with the market leader.
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