BIBA Comments on 'Green' Car Insurance Costs

Motorists who hope that driving an environmentally-friendly vehicle will result in a reduced car insurance premium are set to be disappointed, it has been advised.

The British Insurance Brokers' Association (BIBA) - the leading general insurance body in the UK - said yesterday that the "green-ness" of the car is not a "major factor" in these costs.

Price concerns are on the increase among UK drivers - with high oil costs pushing petrol above £1 per litre and the average insurance premium increasing a further six per cent over the past year.

According to recent figures from the AA, the average annual car insurance policy now costs £682.

Graeme Trudgill, technical and corporate affairs executive at Biba, said: "Smaller cars, which therefore give out less pollution, are automatically going to be cheaper to insure but it doesn’t necessarily mean that a green one is going to be hugely beneficial financially on your insurance."

He added: "How green they are isn’t a major factor."