Drivers of "hybrid" cars that run on both petrol and electricity are being offered a 25 per cent discount on their motor insurance by one of the country's largest insurance companies.
Royal & Sun Alliance Ireland say they are making the move to "renew environmentally friendly driving" by reducing premiums by 25 per cent from yesterday for all new and existing customers with hybrid vehicles.
The company said it believes more motorists will choose hybrid cars in the future and it is seeking to capture that market. Research conducted by the Royal & Sun Alliance Group in Britain found that seven out of 10 drivers would consider switching to hybrid cars if they were cheaper to run than normal cars.
Some 65 per cent of those surveyed said they believed that all motorists would have to switch to more environmentally cars "sooner or later", while almost 60 per cent said they would switch, even if it were not compulsory, if they could benefit from cheaper motor insurance.
Almost one-half of motorists said concerns over the impact of full petrol cars would make them change to a more environmentally friendly model.
"Green motoring is going to be a massive growth area for the car industry as petrol prices continue to rise and real concerns over environmental issues grow. We want to reward drivers who are taking steps to do their bit for the environment," Patrick Nally of Royal & Sun Alliance Insurance said. No figures were available for the current number of hybrid cars in Ireland but it was a growing market, he said.
The company is not yet offering reduced insurance to drivers of biofuel cars, however Mr Nally said they are considering including these motorists in future promotions. The company is waiting for more research on biofuel, he added.
