Car Insurance – Do Green Cars Cost More

Lots of people would like to trade in their gas-guzzling cars and vans for something a little kinder to the environment, but are concerned that it will cost them more money than they are currently forking out. A leading financial website has revealed however that people switching to these greener automobiles will not be paying more for their insurance than they would if they stuck with their standard cars

Following their recent statement concerning ‘green office insurance’, online giant Moneysavingexpert.com announced that drivers do not have to worry about their premiums going up if they switch to an earth-friendly car. The insurance for these types of car, including electric and hybrid options, will be very closely matched to their petrol counterparts and will actually be cheaper in lots of other areas. These include

• Lower cost of fuel as electrical cars are much cheaper to fill up than all-petrol or diesel cars
• Lower tax as the government is implementing tax breaks for environmentally friendly vehicles
• Lower excise duty, in some cases this is scrapped all together for green cars.

The government are among a number of groups who have welcomed this news with open arms as one of their current initiatives is to get people to buy more fuel-efficient and less harmful automobiles. It is predicted that there would be a much smaller shift towards newer, greener cars if the end cost to the driver was a large amount more than if they stuck with what they had.

Following the government’s scrappage scheme which seems to be going well, there are even talks of bringing in an insurance subsidy plan if green cars or green business vans insurance premiums do increase at all. This will help out not only individuals with their insurance costs but also vehicle-based companies who are being urged to go green but are wary about their business insurance prices

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