How to get a good deal on green car insurance

Most motorists that compare car insurance have one goal in mind – to find the cheapest deal. However, for some drivers with a particularly ethical conscience, their aim is also to find an insurance policy that helps the environment.

So is it possible to find the best of both worlds – a green car insurance policy that offers value for money? We’ll take a look.

What is green car insurance?

There are two types of ‘green’ car insurance available in the UK. These are:

- Exclusive green car insurance companies: The likes of The Green Car Insurance Company and ibuyeco specifically target drivers who want to do their bit for the environment by tailoring their products to the green market.

For example, many of these providers offer ‘carbon offsetting’ schemes. This is where the insurance company assesses the amount of carbon dioxide (CO2) your car emits during the course of a year based on your annual mileage, fuel type and engine size. It then purchases carbon credits from offsetting projects around the world to offset your driving. In some cases, insurers will offer a percentage of its premiums to offsetting schemes and in other cases green car insurance companies will offset 100 per cent of your vehicle’s emissions.

The schemes themselves can take various forms but typically involve recycling efforts, planting trees and other green projects. When shopping around you may wish to compare the schemes run by each company to find out which you are most enthusiastic about.

Other green car insurance companies simply dedicate a portion of your premiums to eco charities. There are many other additional green incentives offered by these specialists including discounts for driving low emission cars and alternative energy cars such as electric and hybrid vehicles; or a commitment to using recycled parts when your vehicle needs repairs, where possible.

- Conventional car insurers with green incentives: As the green car market gathers pace more conventional insurers are offering green schemes to appeal to their ethical consumer base.

Some of the schemes these companies may offer include reducing premiums for drivers of alternative fuel vehicles; or charging an additional premium to offset emissions.

How can you save money on green car insurance?

You may assume that if a car insurance provider is dedicating money to a green project, it will be more expensive to insure with that company. This can be the case – but there are ways to reduce green car insurance premiums.

Firstly, make sure you’re getting the best deal available. Most of the leading comparison websites now include some green car insurance companies in their listings so you can compare their deals alongside those of conventional insurers. If you can find a significantly cheaper deal from a conventional car insurance company that doesn’t offer a green scheme, you may even choose to accept that quote and use the money you save to put towards a green project of your own choice. This does require great discipline however, and you may decide it’s worth paying a little extra to have the insurer do the work for you.

Most green car insurance companies offer cheaper rates if you drive a low emission car or an alternative fuel car. This is not necessarily the case with conventional insurers however, because some green cars are more expensive to repair due to their specialist parts.

Drivers should also take the same steps to save with a green car insurer as they would with a regular car insurance company. This can include:

-         Increasing security: Most insurers offer discounts if you fit alarms, immobilisers or tracking devices – consult your provider about which equipment offers the largest savings. Parking in a garage overnight should also reduce premiums.

-         Agreeing to a mileage limit: Reducing the number of miles you drive limits your impact on the environment and could earn a discount from an insurer.

-         Increase your excess: Raising your voluntary excess could bring premiums down – but only set it at a level you can comfortably afford.

-         Pay premiums annually: You can cut out interest charges by paying insurance premiums upfront.

-         Add an experienced named driver: Adding a spouse or more experienced driver with a clean driving record could help lower your premiums.

-         Buying online: Most insurers offer their cheapest deals on the internet due to reduced overheads and this is also a favourable method for the environment by reducing the amount of paper used.

-         Build up a no-claims discount: Most insurers offer discounts based on how long you go without making a claim – this could be worth as much as 60 per cent off your premiums after five years.