Greener cars mean lower tax and insurance, says expert

Drivers of greener vehicles can take advantage of lower tax and insurance costs, which may be especially beneficial under the current credit crisis, the British Insurance Brokers’ Association (BIBA) has said.

Since road tax is based on emissions, owners of green cars will save money compared to other car owners, particularly those who have four-wheel drives.

Insurance is based on risk-based pricing, which is made up of several factors, including a person’s age, experience, the type of car, and the value of the car.

According to Articlesbase, the recent budget introduced an increase in car tax and a 2p rise in fuel costs to come in effect from October 2008, although critics are unsure whether the tax cuts for greener cars will encourage drivers to consider cleaner transport.

However, Graeme Trudgill, technical and corporate affairs executive for BIBA, says: “People recognise that the large four-wheel drive vehicles aren’t so popular and therefore people are now thinking more about buying more environmentally friendly cars like the Toyota Prius.”

Tags: effect, Insurance, fuel costs, lower tax, experience, insurance costs, executive, four-wheel drives.Insurance