Green drivers are quids in saving over £44 million a year[1]

'Green' cars will only account for 0.2% of all registered vehicles in the UK[5] by 2008, yet motorists could save up to £300 a year by adopting greener wheels[6]

British motorists could cut their fuel bills by an average of £165 each year, by driving a 'green' car - that's a national saving of over £9.2 million[2].

Eco-friendly car drivers can also save over £2.9 million a year on road tax, as much as £125 each[3].

Green cars emit an average of 17% less CO2 than their gas guzzling counterparts[4].

If the popularity of green cars continues to grow, there could be over 28,900 green cars bought in the UK this year[5].

New research from uSwitch.com, the independent price comparison and switching site, reveals that going 'green' can help drivers stay out of the'red' with UK motorists potentially saving up to £300[6] a year by adopting a greener set of wheels.

In 2007, the number of green cars bought in the UK grew 70% from 10,000 to 17,000.

If this trend continues, uSwitch.com estimates that there will be 55,900 green cars driving on Britain's roads in 2008, yet this will still only account for 0.2% of all registered vehicles in the country[5].

The research compares the running costs of the six most eco-friendly green cars with their 'non-green' equivalents[7].

Not only do these green cars emit an average of 17%less CO2 than their gas guzzling counterparts[4], but each model is cheaper to run in terms of road tax and fuel costs.

Fuel bills reached a high on the 16th January 2008[8] with average petrol prices across Britain reaching 104.3 pence per litre (19% increase on 88.25p per litre in 2007) and diesel increased by 16% to 109.3 pence per litre (from 93.62p in 2007).

Drivers could combat these rising costs by switching to greener vehicles, saving an average of £165[2]each year on fuel and up to £125 on road tax[3].

Ashton Berkhauer, insurance expert at uSwitch.com comments: "A vehicle's green credentials are fast becoming a major selling point when it comes to buying a new car.

However, it is not simply a case of motorists blindly jumping on to the green bandwagon.

With fuel prices soaring to a record high, motorists are increasingly becoming attracted to these fuel-efficient, lower-tax green vehicles, finding them to be kind on their pockets as well as on the environment.

"There is a perception that green cars are more expensive to buy.

However, we found a green alternative to the normal gas guzzler is on average £130 cheaper to buy [9].

Not only that, but over the course of a five year ownership, green drivers save on average £1,092 on running costs over a 'standard' car [10] on fuel and tax.

So they still pocket £1,222[10], saving both the environment and the pennies." Going green: The motor manufacturing industry is working hard to deliver environmental improvements to their models, bringing new alternative-fuelled cars to the market as well as in-car technologies that limit emissions and dramatically improve fuel efficiency.

This has resulted in a 9.7% reduction in CO2 emissions from new passenger cars in recent years [11].

The insurance industry has also responded to the green boom by providing products that offer competitive premiums alongside carbon offsetting schemes.

Even though there is a lot of talk surrounding the benefits of going green it's important to understand what is actually green about your insurance - the provider or the policy.

For example, some providers such as MORETH>N, are 100% carbon neutral as an organisation.

Other providers, such as The Green Insurance Company*, actively promote green policies and offer discounted premiums for green cars.

They also give away a percentage of their profits to green projects to help offset carbon emissions.

Berkhauer concludes "Our research indicates that eco-insurers are becoming increasingly competitive.

It is not only green drivers who benefit from the surge in green products - motorists driving vehicles with slightly higher emissions should not rule out green providers when searching for an insurance policy.

"Consumers are increasingly tuning to green as research suggests that two thirds of drivers would consider switching to a greener vehicle[12] and sales of 'alternatively fuelled' cars are on the increase[5].

With 'going green' recently being voted the third most popular New Year's resolution[13], it seems highly likely that the green boom is set to gain even greater momentum in 2008.

Not only will drivers acquire the piece of mind that they are doing their bit for the environment, but it can also prove to be a savvy move financially.

To be truly green, motorists should look to use a provider whose company is carbon neutral, drive a hybrid or electric vehicle and offset their emissions by donating to a charity that works on environmental projects." uSwitch.com's Top Tips for Green Motoring: Drive a green car and not a gas guzzler with high fuel emissions.

Explore the possibility of hybrid technology, using biofuels, or maybe even using hydrogen in your vehicle.

Seek alternative means of transportation such as public transport or walk/cycle for shorter journeys.

Reduce the number of cars on the road by car sharing with a colleague to travel to work.

Check your tyre pressure - low air pressure in tyres can increase fuel consumption by up to 10%.

Watch your speed - driving at 70mph can consume almost 25% more fuel than driving at 50mph, however traveling at 15mph creates the most pollution.

Around 56mph is roughly the optimum speed to reduce fuel consumption.

Avoid harsh acceleration - revving your car will use more fuel and add to wear and tear.

Limit your use of air conditioning.

Anticipate conditions and plan your journey - avoid peak times and areas of known congestion.

* www.greeninsurancecompany.co.uk/about_us/greencreds.html Information on The Green Insurance Company's green initiatives.

1.

Using the assumption of 55,900 green cars in 2008 (see caveat 5), the national saving on fuel made by green cars (see caveat 2), plus the national saving on tax by green cars (see caveat 3) and the average saving on depreciation after a year (see caveat 10) the nation could save (£31,415,800 depreciation+ £2,962,700 tax+£9,245,860 fuel)= £43,624,360.

2.

Out of the green cars selected by uSwitch.com the average fuel cost over 12,000 miles is: £790.20 for a green car (£683 + £722 + £876 + 826 + 844 divided by 5).

The average cost of fuel for 12,000 miles for a standard car is £955.6 (£808 + £1,192 + £1073 + £844 + 861 divided by 5).

This is a difference of £165.40 and represents the annual savings that can be made on fuel by green drivers.

When applied to the number of green cars that are estimated to be on the UK roads in 2008 (see caveat 5) this equates to a green saving of £9,245,860.(£165.4 x 55,900).

3.

When comparing the green cars and the non-green equivalents the biggest saving on tax that could be made by going green was £125 (Toyota Prius Tax Band B = £15.00 versus Toyota Auris Tax Band E = £140) and the smallest saving was £25 (Renault New Laguna Hatch Tax Band C = £115 versus the Renault Laguna Hatch Tax Band D = £140).

The average green car tax studied by uSwitch.com averaged at £56 (£0+£15+£115+£35+£115 divided by 5).

Standard tax averaged at £109 (£35+140+140+115+£115divided by 5).

This is a difference in average tax of£53.

(£109-£56=£53).

When applied to the estimated number of green cars in 2008 (see caveat 5) this is a total national green saving of £2,962,700(£53 x 55,900 green cars).

4.

The average carbon emissions on green cars researched by uSwitch.com is 116 CO2 (g/km).

(99 + 104 + 130 + 120 + 127 divided by 5).

For standard vehicles this stands at 139 CO2 (g/km) (119 + 166 + 155 + 127 +129 divided by 5).

This equates to 17% less CO2 emissions from green cars.

(116 andnbsp;(green emission)divided by139 (standard)= 0.830.83 x 100 = 83% 100- 83 = 17%).

5.

"In 2006 UK sales of such vehicles [green] totalled fewer than 10,000 units so the growth to an expected 17,000 registrations is significant." Source: SMMT If the increase from 2006 to 2007 is 70% ((17000-10000)/10000 = 70%.) If you apply the same growth rate in 2007 to 2008, 28900 additional green cars will be registered in the UK (17,000 x 1.70 = 28,900 green cars).

Adding these new green cars to the ones already registered gives a total of 55,900 registered green cars in the UK by 2008 (28,900 + 17,000+10,000).

According to SMMT there are 30,920,000 cars in the UK (30,920,000 - 55,900 green cars = 30,864,100 'standard' cars in the UK).

6.

£;290 can be saved over the cost of a non-green equivalent car based on the £165 average annual fuel saving and the biggest tax saving of £125 (Toyota Prius Tax Band B = £15.00 versus Toyota Auris Tax Band E = £140).

7.

Top ranking green cars in each individual class selected from http://www.dft.gov.uk/ActOnCO2/.

Comparable higher emission vehicles in the same class selected by uSwitch.com.

8.

Source: Petrolprices.com: http://www.petrolprices.com/.

9.

The average cost of non-green cars selected by uSwitch.com is £14,911 (£19,420 + £10,470 + £16,995 + £12,425 + £15,245 divided by 5).

The average cost of the green cars is £14,781 (£16350 + £10,990 + £15,995 + £11,995 + £18,577 divided by 5).

This makes the green cars on average £130 cheaper to buy.(£14911-14781 = £130).

10.

Over 60,000 miles fuel for a green car averages at £3,951 and for a standard car, £4,778.

This is a saving of £827 for running the green car (£4,778 - £3,951).

On average green drivers can save £53 on their road tax (see caveat 3).

Over 5 years this is a saving of £265 (£53 x 5 =£265).

This is a total saving on fuel and tax over five years of £1,092 (£827 + £265).

On top of the fuel savings, green cars depreciate by £562 less on average a year than standard cars.

Of the cars selected by uSwitch.com the green cars depreciated on average £6,136 over the year and standard,£6,698.

This is a difference of £562 (£6,698 standard - £6,136 green = £562).

When this saving is applied to all the green cars expected to be on Britain's roads in 2008 this is a national depreciation saving of £31,415,800 (£562 saving multiplied by 55,900 green cars (see caveat 5).

11.SMMT Drive Green - Drive Safely: the latest data available indicates that average CO2 emissions from new passenger cars in the UK fell by 9.7% between 1997 and 2004.

12.Source:Motorpoint.

13.Source:EDFEnergy.

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