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Green cars 'not always best for insurance'
19 May 2008
Having an environmentally-friendly car does not automatically reduce the cost of your car insurance, claims the British Insurance Brokers' Association (Biba).
Motorists who want lower insurance premiums should be aware that the greenness of a vehicle does not have a "major factor" in the cost of car insurance.
While a smaller car which creates less pollution will be cheaper to insure because of the size of its engine, a vehicle's insurance premium is decided on its grouping.
Graeme Trudgill, technical and corporate affairs executive at Biba, said: "Eco-cars aren't necessarily cheap to repair and every car has a grouping between one and 50 so if you are worried about the price of insurance you should look at the grouping on the car and not how green it is. How green they are isn't a major factor."
According to the AA, the average car insurance premium has increased by about six per cent to £682 in the last year.
