Eco car insurance

What is eco car insurance?

Eco car insurance describes two distinct but related types of environmentally-friendly car insurance:

Insurance designed for an electric, hybrid or sustainably fuelled car

Many UK insurance providers are now offering cover specifically designed for eco-friendly cars. And, while you don’t have to have specialist green car insurance for a hybrid or electric car, it may offer useful features.

For example, electric car insurance could include recovery to the nearest charging point. It might also cover batteries and charging cables and even damage to public or home charging points.

Insurance cover that strives to be more eco-friendly

Some eco car insurance policies may donate to carbon offsetting projects to help counter the emissions from driving a petrol, diesel or hybrid car.

Others may offer discounts to drivers who reduce their mileage, perhaps by switching some journeys to public transport.

What is an eco-friendly car?

An eco-friendly or green car is one that has lower emissions than a conventional car. Or it may have no emissions at all. Eco cars might use sustainable fuel, be fully electric or a hybrid of electric and regular combustion. Let’s look at the key types of green car:

Hybrid cars

Hybrid cars use a regular (combustion) engine and a battery-powered motor. They have lower emissions because they use both electric and traditional fuel energy sources to run.

Many hybrids are self-charging, but there are also plug-in hybrids with bigger batteries that can be charged in the same way as electric cars.

Electric cars

Electric cars run on an electric battery, make almost no noise and need to be plugged in to recharge.

Biofuel cars

Biofuels are made from plants and waste products, like old cooking oil, or even used coffee grounds.

Cars that run solely on biofuels aren’t widely available yet. But the standard unleaded petrol you’ll find at UK forecourts is blended with biofuel. E5 petrol is blended with 5% biofuel and E10 with 10%. And we now have buses on the road powered by biofuel too.

Hydrogen cars

Hydrogen car engines convert hydrogen into fuel. The only waste product these cars emit is water.

LPG cars

Liquid petroleum gas (LPG) burns cleaner than traditional petrol or diesel. By converting your regular petrol car to LPG, you can run it off both fuels.

Why should I consider an eco-friendly car?

As we all work to reduce our carbon footprint, our choice of car is one area where we can make a big difference.

A new electric car will produce a third of the emissions of a new petrol car over its lifetime. And as the energy grid switches more to renewables, this gap should widen further.

In addition, air pollution in the UK is responsible for thousands of deaths every year. So, it’s important for all of us to look at what we can do to help reduce the pollution from our cars.

What cover should I look for when insuring a green car?

The cover you choose for your eco-friendly car depends on your specific situation and needs. Many UK insurance providers now offer cover for hybrid and electric vehicles as standard. But policies vary in terms of the cover and extras they provide.

Here are a few things to consider when choosing an eco car insurance policy for your electric vehicle:

• Running out of battery: make sure you’re covered for recovery in case you run out of charge on your journey

• Protection for your charging devices: look for policies that include cover for the charging unit and cables you need for your electric car

• Battery cover: electric batteries often come with a warranty from the car manufacturer. But you’ll still want to make sure it’s covered for accidental damage, theft and fire by your electric vehicle insurance policy.

Is eco car insurance cheaper?

It depends on the policy you choose, your car and your driving history. Though premiums are falling, as things stand, car insurance for electric and hybrid vehicles is generally more expensive than for petrol or diesel cars.

This is because EVs are still relatively new to the market, are typically more expensive, and the cost of parts and repairs tends to be higher.

But policy costs vary between insurance providers. Some may charge extra to insure a hybrid or electric vehicle, while others may offer discounts for cleaner energy vehicles. So, it’s worth shopping around and comparing quotes for eco car insurance.

It’s also worth thinking about performance when you’re weighing up which new eco car to buy. Insurance providers will take your car’s insurance group into consideration when giving you a quote. A less powerful eco car may cost less to insure because it’s considered safer.

Do also bear in mind that there are many other factors determining how car insurance premiums are calculated. These include your age, annual mileage, postcode and driving history.

How much road tax will I have to pay for my electric car?

Most electric car drivers pay £200 a year in vehicle tax in 2026/27. If your electric car cost more than £50,000, you'll also pay an Expensive Car Supplement of £440 a year for five years.

How can I find eco-friendly car insurance for my regular car?

If you’re not ready to make the switch to a greener car, you can still choose a more environmentally-friendly car insurance policy. Here are some ways:

Choose cover that rewards efficient driving

You could think about telematics insurance, also known as black box insurance. Using a black box or smart phone app to record how and when you drive could result in greater fuel efficiency. This, in turn, could mean savings from your insurance provider.

Choose a low-mileage car insurance policy

As well as improving your carbon footprint, cutting down on your annual mileage could save you money on your insurance premiums.

That’s because less time on the road means less chance of an accident. A lower-mileage policy could be cheaper, too.

Choose a green insurance provider

Some providers offer green car insurance policies that commit to funding conservation and sustainability projects to offset some of your driving emissions.

Other green car insurance providers may use repairers that source recycled car parts – called ‘green’ car parts – for certain non-safety-critical repairs. And most insurance providers now offer paperless policies.

Greener driving is about making better, more informed choices. And that’s where we come in. We’re here to help you find the a great deal on your eco car insurance by comparing a range of policies from some of the UK’s most trusted insurance providers.

How can I help the environment if I drive a regular car?

As well as switching to a greener car insurance policy, there are changes you can make to your everyday driving that could help lower your emissions and your impact. That’s true even if you still drive a petrol or diesel car.

Here are some handy tips that will not only help the environment but could also potentially save you money.

Remember that bigger isn’t better when it comes to driving green

The bigger the car, the higher the emissions and fuel costs. So, think about whether you really need that seven-seater, especially if you usually drive alone.

Share journeys to reduce emissions and save money

Can you carpool on your commute or school drop? If you can, you’ll share fuel costs while reducing your carbon footprint.

Lighten your load

Reducing the weight of your car means you’ll use less fuel. But you don’t have to lose passengers or your spare wheel. Try:

• Clearing out the boot and back seats

• Half-filling your fuel tank if you’re only making short journeys

• Losing the roof rack if you’re not using it.

Avoid unnecessary journeys

Are there any car journeys you make that aren’t really necessary? Could you walk or cycle down to the shops to get the milk rather than drive, or use public transport to go see your nan instead?

Even small changes can make a difference to the environment. And a lower annual mileage could mean cheaper car insurance too.

Consider what car you really need

A four-wheel drive car uses slightly more fuel than a two-wheel drive, even if it’s the same style and size. So, think about whether you really need a 4x4 if the only off-roading you do is parking on a raised kerb.

Anticipate road conditions

Driving smoothly will mean you’re breaking less harshly and using less fuel. Read the road, and avoid sharp acceleration and heavy breaking.

Check your tyres regularly

Under-inflated tyres are dangerous and can increase your fuel consumption.