Car Insurance - Go greener for lower car insurance

 
 
 

Motorists who change to opt for a less polluting car will save money on their car insurance.
 
Research conducted by the AA has shown that a real trend has been emerging in recent years with UK motorists turning from petrol heads to more greener driving options.
 
Two years ago when asked if they intended to purchase a ‘green’ car this year, a mere 6% of respondents said that they were. However, the new research reveals that this figure has bolted up to 23%, almost a fourfold increase.

Occurring over the same time period, the number of those surveyed interested in sportier cars has declined while those after small family cars has increased.

Two years ago so-called gas guzzlers were the target of 5% of respondents but the figure has nose dived to just 2% this year.

Alistair Darling’s last budget went a fair way to encouraging motorists to keep on the greener straight and narrow path. But as usual his proposals in the right direction were met with the usual ‘and’ response by the green fraternity who thought they did not go far enough.

With the lull in the economy responsible for a more cautious outlook and in some cases the tightening of household budgets, more motorists will be turning to smaller and more economic vehicles. Lower car insurance, road tax and less outlay on petrol are all savings that make good economic sense.

Along with making financial savings motorists will know that are also doing their bit to cut carbon omissions. As transport accounts for almost one third of carbon emissions and cars responsible for 22 per cent, the average car on the road today emits 168g/km. A typical driver can reduce their carbon dioxide emissions by 25 per cent by choosing the most efficient vehicle.

One of ‘green tax’ initiatives in the budget for motorists will be the Vehicle Excise Duty. From April 2009 the VED will be restructured to reward drivers of the cleanest cars, with a higher first-year rate from 2010 to encourage people to buy greener cars. The most polluting vehicles will face a £950 "showroom" tax that will come into effect from 2010. The showroom tax will hit people buying new cars that are the most polluting.

Although as the AA research has suggested that there is a trend towards less polluting car models there are still many Brits who stand fast in their choice to drive their 4x4s. Arguments for driving 4x4s seem to revolve around feeling safer, room for kids, more comfortable for long distances to ‘I like the look of it’ or ‘it’s my right to drive what I want’. For every driver opting for a greener vehicle there’s always going be a Jeremy Clarkson saying to hell with the beardy and veggie brigade.

Along with trying to turn motorists to greener cars the budget also set out to get manufacturers to produce greener cars.
 
From April 2010, no car tax in the first year for cars that emit less than 130g/km of CO2. The so-called “Showroom Tax” means that the most polluting vehicles such as those in Band G will pay £1000 road tax in their first year, before dropping to the current level of £400. From April 2009, Vehicle Excise Duty is to be reformed to encourage manufacturers to produce more environmentally friendly vehicles.

From October drivers of higher omission vehicles will have to pay £25 for the pleasure of driving in Central London as the Transport for London higher congestion charge kicks in.

Other further initiatives that could be in the offing are tax incentives to encourage companies to adopt greener fleets and different coloured tax discs to allow higher parking charges for the most polluting vehicles.

All in all, it seems that if motorists continue to look at greener car options they will be quids in at the end of the day, while for many who it just not viable or just prefer not too they will find themselves paying extra.

 


 
     
 
 
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