Premium policies can offset your emissions

Motorists have long been the whipping boy of green campaigners who argue that, as road transport accounts for more than a fifth of UK emissions of carbon dioxide, the charges levied against drivers such as road and fuel tax are not altogether unfair.

For a while now campaigns to clean up cars have pricked the consciences of motorists. The success of hybrid cars such as the Toyota Prius is a sure sign that the carmakers and purchasers are investing in cleaner, greener products.

Now insurance companies are offering ways to invest in carbon-offsetting projects using premium payments.

Co-operative Insurance’s ecoinsurance for cars (www.ecoinsurance.co.uk) will put some of your premium money into Climate Care (www.climatecare.org), an offsetting organisation that will use the money to fund sustainable energy projects. The average annual premium for a Ford Focus would be £370 and from this the company donates to Climate Care enough to reduce 20 per cent of the average car emissions.

Another organisation, Climate Sure (www.climatesure.co.uk), has been set up in conjunction with insurers including Axa and Norwich Union to fund offsets on the motorists’ behalf. An insurance policy is chosen for the customer with a carbon offset, based on their car and average mileage, embedded into the policy.

For those motorists who have already invested in a greener car, More Than insurance has also announced it will offer automatic discounts of up to 13 per cent off the cost of policies to drivers of environmentally-friendly cars.

The British Insurance Brokers Association says that offsetting emissions within motor insurance is not yet common practice but is something more companies are starting to consider.

Richard Mason, director of insurance at price comparison website moneysupermarket.com, applauds insurers for trying to become more green-friendly.

However, he advises motorists to compare the market carefully as the policies are not among the most competitive.

He says: “Instead of letting the insurers pocket the difference, motorists should shop around for the most competitive car insurance policy and give directly to eco-friendly charitable causes.”

It seems likely that more and more financial services providers will enter into the green motor market as the subject persists
in engaging everyone’s imagination.

The result of this is likely to make for more competitive prices for consumers who want to do their bit for the environment.