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Green cars increasingly popular

The recent budget speech saw an increase in car tax and increased costs 2p fuel effective from October 2008. Critics believe that these increases put a strain on motorists who are already paying the price highest ever for fuel, another bone of contention is whether the tax cuts for greener cars will encourage drivers to consider a transport cleaner.

The only good news for drivers coming out of the budget changes was that the chancellor decided to delay a 2p rise in fuel prices until October 2008, however, since the cost of fuel is already at its highest elevation at 106.1p per liter.

Ashton Berkhauer, an insurance expert at uSwitch.com said: "The budget announcement may be a hard pill to swallow for the 41.7 million British motorists. Only drivers who opt for less polluting vehicles, which currently represent only 0.2% of the cars on the road will be encouraged. "

The head of insurance.co.uk, Steve Grainger said: "For those who are stretching to meet oil prices in October will come too soon."

There has been much speculation in recent months that the highest polluting vehicles will start to face sanctions and environment friendly drivers will be rewarded. So the announcement that from 2010 drivers with vehicles more environmentally friendly will pay no tax on their first year was not a surprise. Most polluting vehicles can expect to see an increase in the price of its tax band G vehicles are expected to see an increase of 233% from £ 300 to £ 1,000 in the first year.

Berkhauer said: "The drivers of green vehicles are the best financial position. Our research shows that green car owners currently save £ 165.40 a year on fuel compared to the standard driving cars. The increase in October of this savings will increase to almost £ 170 a year. "

"The new proposal would expand family cars like the Renault Espace, which are subject to the same tax as a new Lamborghini Gallardo. An extra £ 1,000 may be small change to a Lamborghini buyer considering the price £ 126.350. However, this could be a real strain on the budget of an average family. "

It is estimated that Britain's roads will house 55 900 cars green at the end of 2008, although this represents only 0.2% of all vehicles registered in the UK.

Some critics are disappointed that the Chancellor has not done more to promote green transport. s Tescocompare.com 'Matthew Dransfield spokesman said: "We fully support today's announcement to encourage consumers to be more environmentally conscious when buying a car. However, we are disappointed that the Chancellor did not seem to broader barriers to the purchase cost eco-friendly cars and consider cutting taxes insurance premium for these cars as an incentive to go green. "

Car insurance for a car £ green can cost more than a green car is not 50 and a similar size with similar features, and it costs more to repair the ecological cars. Dransfield said: "With the average car insurance premium car being green £ 400 – the elimination of tax on insurance premiums of 5%" would make the cost of ensure equivalent to a similar standard car. Drivers can do much to reduce their carbon emissions, as well as their insurance costs by reducing mileage annually taking into their car serviced regularly, regularly checking tire pressure and limiting the amount of time spent idling, all which will increase fuel efficiency and reduce carbon emissions. "

There are a few auto insurers offer special policies for green vegetables and customer attitudes towards green vehicles are radically changing the sense that more insurers will have to offer reasonable prices for vehicles of green politics.

About the Author

Jemma is an author of several articles pertaining to Mortgages, Car Insurance, Life Insurance, Home Insurance and other Business and Finance articles.

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