Carrot not stick will persuade motorists to go green

New research by Tescocompare.com, the car insurance comparison site, reveals that 2.0 million motorists claim to drive an environmentally friendly car – but that over 21 million would consider converting to a ‘green’ or low-emission car if the price was more competitive and the government offered incentives for doing so.

According to Tescocompare.com’s Green Gauger index, a quarterly index of the public’s take up of green initiatives – 8% of the over 55s own a ‘green’ car – compared to 4% of the under 34s.

The take up of green vehicles is highest in Wales and the South West – where 12% of the population has chosen a car which harms the environment the least. This is three times the penetration of the capital, London, where only 4% of car drivers own a ‘green’ or low-emission car. In the West Country as many people chose their current vehicle because of its environmental credentials as its colour.

The good news is that only a tiny minority of British car drivers (5%) state that they are ‘not very worried about the environment.’ And a similar proportion of drivers (6%) would rule out purchasing a ‘green’ car.

The triggers for purchasing a ‘green’ car, however, are all based on the financial incentives of owning one rather than the financial penalties of not. For example; 62% would be persuaded if road tax was reduced, in contrast, only one in five motorists would be persuaded by the move in the Budget for higher taxes on fuel inefficient cars.

Drivers were asked ‘What would persuade you to buy a ‘green’/low emission car?’ *

If it was competitively priced in relation to ordinary cars	65%
Reduced road tax	62%
Cheaper parking fees	36%
If it had a powerful engine/good performance	27%
If fuel prices rose steeply	25%
No congestion charge	22%
Higher taxes on fuel inefficient vehicles	21%
If it looked like a sports car	8%
Nothing would persuade me to buy a ‘green’ car	6%
I already own a green/ low-emission car	6%

Paul Baxter of Tescocompare.com said: "The message that the British driver is sending to the Government is empathetic – they are happy to embrace green driving but want to be rewarded for doing so. Penalising them for not being green is much less of an incentive."

Research conducted on Tescocompare.com shows that on average, consumers can pay £50 more to insure a ‘green’ car, such as the Toyota Prius, than a ‘non-green’ car of similar size and features due to the higher costs of repairing these cars. With the average car insurance premium being £400 this is 5% of the total cost. Insurance premium tax is currently 5% – and its removal on ‘green’ cars would make the cost of insuring one equivalent to a similar standard car.

Paul Baxter continues: "We are disappointed that the Chancellor did not look more widely at the cost barriers for purchasing green cars in the recent Budget and consider cutting Insurance Premium Tax for green cars as an added incentive. Our research clearly shows the nation’s motorists are much more likely to go green if it saves them money as well as saving the planet."

Since its launch in Sept 2007, Tescocompare.com has seen a 12% increase in the number of car insurance quotes for ‘green’ or environmentally friendly cars – and is now seeing over 140,000 quotes each month for such vehicles. ** Similarly – since 2001 there has been a seven fold increase in the numbers of ‘green’ or low emissions vehicles on the nation’s roads.

Paul Baxter continues: "Whilst it is heartening that many have recently bought an environmentally friendly car – and many many more will consider purchasing a green car in the future, motorists can do their bit for the environment without changing cars. They can cut carbon emissions as well as their insurance costs by reducing annual mileage. In addition, regularly servicing their car, ensuring the tyres are inflated to the correct pressure and limiting the amount of time spent idling, will increase fuel efficiency, saving them money and of course lowering carbon emissions.

"They could also consider a couple of specialist car insurers who offset the carbon from their policyholder’s annual mileage. Consumers wanting to go green can find iBuyeco and CIS – along with 34 other leading car insurance brands – on Tescocompare.com."

* Survey carried out online by Opinium Research LLP between 25th - 28th February 2008 amongst a nationally representative sample of 2114 British adults. All results have been weighted to nationally representative criteria.

** Analysis of quotes on TescoCompare.com since Sept 2007.