Green Life Guide

Looking for a greener option for your car insurance? Please read our guide.

Understanding green car insurance

Despite the ongoing global economic crisis, sales of hybrid and green cars have remained relatively stable. With oil prices hitting a record high in September 2008, the resulting slump in the motoring industry saw sales of hybrids fall by just 8.9% from their 2007 high compared with an overall fall of 26.6% for other light duty vehicles indicating that while not immune to the crisis, green cars are viewed as a potential solution.

This is because there are many benefits to owning green cars. They are not only helpful to the environment as they produce less greenhouse emissions (electric cars produce zero emissions) but they save drivers a significant amount of money too. Hybrid cars generally offer better fuel efficiency that most conventional cars (for example the Toyota Prius is capable of 60mpg) and because of their environmental benefits they fit into low vehicle excise duty bands and are exempt from congestion charges.

What about green car insurance?

One of the few financial downsides to owning a green car is that there is no advantage in terms of car insurance. Green car drivers will be generally viewed as quite safe behind the wheel due to their economical style of driving however insurance companies will offset this against the repair costs of the vehicle as green cars incorporate sophisticated technology which can be expensive to repair. With this in mind, insuring a green car can cost just as much as a conventional car.

However, there are several car insurance providers that offer green car insurance (also known as ethical car insurance) policies.

These policies specifically target drivers with an ethical conscience who are worried about the effect their vehicle has on the environment. As such most of these green car insurance providers will offer carbon offsetting schemes in which every mile you drive and effectively pollute the atmosphere is offset by a green scheme somewhere in the world such as planting trees or creating renewable energy sources.

These policies have been criticised as they are not always financially beneficial to drivers and that a better solution would be for drivers to search for the cheapest policy they can find and then put the money saved towards a green scheme themselves. However, if you feel that you cannot trust yourself to do so then a green car insurance policy can be seen as an ethical solution.

Which providers offer green car insurance?

There are several green car insurance companies already in market including:

Co-operative Insurance – They offer “eco-car insurance” which will offset 20% of a vehicle’s emissions through reforestation and renewable energy sources.

Egreen Insurance – Uses a percentage of your car insurance premium towards purchasing half and acre of rainforest.

The Green Insurance Company – Will offset all your vehicle’s emissions. Also rewards drivers with low emission cars by offering a discount and a portion of the company’s profits are given to charity.

Ibuyeco – Renewable energy projects such as methane capture are funded by this insurance provider offsetting 100% of your vehicle’s carbon emissions.

More Than – Have introduced a unique “Green Wheels” policy to help drivers understand the effect their driving style has on the environment and offers advice on improving green performance.

How to make a green car insurance claim?

Making a claim on a green car insurance policy works in exactly the same way as claiming on a conventional policy, and as such you should always consider whether it is absolutely necessary to make a claim, as this will affect your no claims bonus and therefore will have an impact on your insurance premium. If you believe that a claim is absolutely necessary then you should contact your insurance company at the very earliest opportunity. You may be required to complete an accident report form and you should enquire into what additional evidence or documentation is needed to support your claim. If your car is damaged do not book it in for repairs until you have discussed your claim with your insurance company as you may find your policy only covers your car for repairs at an authorised garage.

If you are not satisfied with your insurance company in the event of a claim then remember to shop around at renewal to find a better car insurance provider.