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Green Car Insurance

Everything you need to know about green car insurance

Mehdi Punjwani
Written by  Mehdi Punjwani
Donna McConnell
Reviewed by  Donna McConnell
4 min read
Updated: 05 Mar 2024

What is green car insurance? 

Green car insurance is a phrase used to describe cover suitable for electric cars. There isn’t a specific ‘green car insurance’ product, and Money Supermarket do not sell these products, but you can compare prices for standard cover for your green or environmentally friendly car here. Insurance providers also offer policies designed for people who want to lead a greener lifestyle: 

  • Electric car insurance: Electric car insurance offers cover for your electric or hybrid vehicle, often to the same degree as standard cover. However, it also offers extra cover specifically for electric vehicles, such as cover for the car battery, portable charging cables, or legal cover related to your electric car and its equipment 

  • Low-mileage insurance: Low-mileage cover might be useful if you’re aiming to keep your mileage, and therefore your emissions, as low as possible. These policies reward you for spending less time on the road, as this equates to a reduced chance of being involved in an accident and needing to claim on your policy, as well as reducing your overall emissions  

  • Ethical car insurance policies: Finally, you might decide to look for specific car insurance providers that donate profits to green causes or even fund carbon offsetting projects. This can be a good way to ensure your money is being spent in the right places while you still have cover in place for your vehicle  

Types of eco-friendly cars 

Eco-friendly cars are essentially cars that do less damage to the environment than petrol and diesel cars. Most car manufacturers make the following types of eco-friendly or green cars:  

  • Electric cars: Electric cars don’t require any petrol or diesel at all - they’re completely battery powered, and generally require charging as opposed to a fuel top up. These cars are often silent, with no odour from fuel combustion 

  • Hybrid cars: Hybrid cars are like traditional fuel-powered cars, but also have electric batteries as backup to reduce fuel consumption.  

  • Fuel cell cars: Newer on the market are hydrogen fuel cell cars, which convert hydrogen into energy through a chemical reaction  

Car insurance options for green vehicles 

If you have a green car such as one of those above, you’ll still have the same basic options for car insurance in that you’ll be able to choose from third-party only, third-party fire and theft, and fully comprehensive cover. 

Third-party only cover is the minimum level of insurance required to legally drive on UK roads - however, it’s often the most expensive too, and won’t offer protection for you and your vehicle. It only covers damage caused to another vehicle, person or property. Third-party, fire and theft policies add cover for your car if it’s stolen or damaged by fire or an explosion, but for wider coverage you should take out fully comprehensive insurance. 

Fully comprehensive car insurance offers the most complete protection for you and your vehicle, so you’ll be able to claim for most types of loss, theft and damage, depending on the details of your policy. Fully comprehensive cover often costs less too, so it’s the best type of policy all-round. 

While electric car insurance also offers extra cover for your battery and accessories, you can still take out a range of other cover types, from multi-car and named driver insurance to business car insurance, telematics, and short-term cover.  

Are green cars more expensive to insure? 

Green or electric cars have traditionally been more expensive to insure for some years, owing to the relatively new technology that meant parts, repair costs and specialist repair work would cost extra. However as electric and hybrid cars become more mainstream, prices are falling and it’s becoming more affordable to own, operate and insure greener vehicles.  

Are there any government grants to help me switch to an electric car? 

Yes, the UK government has some grants in place to encourage people to shift towards electric vehicle - you may be able to qualify through one of the following:  

  • The EV ChargePoint Grant: You can qualify for financial help with installing smart chargepoints for electric vehicles at home, often up to 75% of the cost. It replaced Electric Vehicle Homecharge Scheme in April 2022, and is available for landlords, renters and homeowners, but the application process is different for each 

  • The Workplace Charging Scheme: Business can also qualify for vouchers towards installation costs of chargepoints in the workplace. These can cover up to 75% of the cost to a maximum of £350 per charging socket, for up to 40 chargepoints  

  • The On-Street Residential Chargepoint Scheme: This offers local authorities financial help towards installing chargepoints on the street for people to use 

  • The Plug-in Car Grant: While no longer available for standard electric cars, the Plug-in Car Grant is still available for mopeds, motorcycles, vans, trucks, and wheelchair accessible vehicles - so long as they meet a minimum electric range and emission threshold. The discount is applied to the price of the vehicle when you purchase it, and can be as much as 35% 

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