BIBA: Eco-cars aren't cheaper to insure

16.05.2008

People considering buying an eco-friendly car should be aware that their insurance premiums will not automatically be any cheaper, the British Insurance Brokers' Association (BIBA) has said.

Sales of hybrid cars have risen by 15 per cent this year and they now make up three per cent of the total market, according to HybridCars.com

However, BIBA said that environmentally-friendly cars may not be cheap to repair either.

Graeme Trudgill, technical and corporate affairs executive at BIBA, said that the size of a car is a more important factor in determining car insurance.

"It's just the case that 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," Mr Trudgill said.

According to the AA, the average car insurance premium had risen by around six per cent in the past year to £682.
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