We all want to do our bit to reduce our impact on the planet. One of the shifts many people are making is to choose a more environmentally-friendly car. Maybe you’re interested in a full or plug-in hybrid, or are keen to go fully electric. Or perhaps you just want to buy a petrol car that’s less polluting than most. This guide outlines what counts as a low emission car and, crucially, what owning one means for the cost of insurance.
The official answer, according to the UK Vehicle Certification Agency, is that a low emission vehicle (LEV) is one that produces less than 100g of CO2 for every kilometre (0.6 miles) travelled. There’s a sub-category within this of “ultra low emission vehicles”. These produce less than 75g of CO2 per kilometre travelled.
The types of cars that typically qualify as low emission vehicles are either:
Petrol cars aren’t categorically excluded from being counted as low emission vehicles, but in practice, few petrol cars are likely to have sufficiently low official CO2 emissions.
All fully electric cars qualify as low emission cars, as they produce no CO2 at all. Popular EVs include the Nissan Leaf, the Kia E-Niro, the Volkswagen e-Up, the Mini Electric and, of course, the iconic (and pricey) Tesla Model X.
Popular hybrids that make the cut include:
In most cases, low emission car insurance isn’t a specific category of car insurance (or, at least, not yet). While not every insurer will cover every type of low emission vehicle, you’ll be able to find insurance for low emission cars via most price comparison sites. So owning a low emission vehicle shouldn’t mean you’ll find it any harder to find insurance.
Having said that, there are car insurance providers that specialise in cover for ultra low emission vehicles. These target their policies specifically at owners of electric, hybrid and plug-in hybrid cars.
You can check the official CO2 emissions of new and used cars using the Vehicle Certification Agency’s search tool. This also lets you check a car’s fuel consumption and tax band.
It’s worth knowing that, somewhat confusingly, the CO2 emissions that qualify a car as a “low emission vehicle” are different from those that might permit a car to drive in a UK city’s low emission zones – London’s ULEZ, for example.
The ULEZ, or Ultra Low Emission Zone, is a defined area of London. You can only drive in this area free of charge if your vehicle meets certain emission standards. If you don’t meet the entry requirements, you have to pay a penalty to drive in the ULEZ.
The specific entry requirements depend on the type of vehicle and its engine (petrol vs diesel, for example). Petrol cars must meet Euro 4 emissions standards, while diesel cars must meet Euro 6 emission standards.
The emission levels dictated by these standards are less strict than for a car to be officially considered a low emission car according to the Vehicle Certification Agency. Most petrol cars registered with the DVLA after 2005, and most diesel cars registered after September 2015, should be able to drive in the ULEZ without paying the ULEZ charge. If you drive an older car, or are uncertain about whether your car meets the criteria, you can use Transport for London’s vehicle emissions checker.
When insurers set their premiums, they’re primarily worried about 2 things:
The former is why they ask lots of questions about things like your age, where you live, how many miles you do each year and any claims history. All of these factors play into how risky you are to insure.
In and of itself, driving a low emission car doesn’t make a driver any less likely to make a claim. That said, there’s a theory that early adopters of electric vehicles, for example, are ethically minded and that this might make them safer, more conscientious, and lower-risk drivers. If an insurer has evidence to back this up, this could lower your premium.
Another key factor for insurers is what car insurance group your car is in. This is influenced by things like a car’s value when new, how powerful it is, what safety features it has that can reduce the risk of an accident or minimise damage, and the cost of parts and repairs.
Some of these points are also about the risk of making a claim in the first place – there’s evidence that more powerful cars are more likely to be involved in accidents, for example. But many are about how much an insurer will have to shell out in the event of a claim.
Electric and hybrid cars are typically more expensive to buy new than traditional petrol or diesel cars, and their more specialist technology can make them pricier to repair. So this may push them into a higher car insurance group than an equivalent petrol or diesel model. The higher the insurance group, typically the pricier the insurance.
The examples of low emission vehicles we’ve highlighted above fall into car insurance groups ranging from group 50 for the Tesla Model X, to group 10 for the diminutive VW e-UP. For comparison, petrol versions of the VW e-Up can sit in anywhere from group 1 to group 17, depending on the specific model.
If you have a low emission car, you’ll be able to choose from the same levels of cover as anyone else.
Depending on the level of cover you opt for, insurance for a low emission car will include the same things as car insurance for a traditional petrol or diesel car. Plus, potentially, a few extras.
Many low emission cars are either partly or fully powered by electricity. This means they’ll have a large electric battery alongside the smaller 12 volt battery that is present in all cars. This smaller battery runs things like immobilisers and clocks when the engine is switched off.
So, insurance for electric and hybrid cars should also cover damage to the electric battery in the event of an accident. Plus, if you have an electric or plug-in hybrid car, which needs to be plugged in to charge the battery, you’ll also want to check that your policy includes:
Bear in mind that low emission car insurance will also have the same standard exclusions as insurance for any other car. These include driving a vehicle that’s unroadworthy or making modifications without telling your insurer.
That’s the million dollar question. There are lots of factors that play into the cost of owning and running a car. You need to take account of all of them when working out if a low emission car will save you money. Let’s break the key factors down.
In summary, you’ll almost certainly pay more in the short term for an electric or hybrid car, but the lower running costs of full EVs in particular could well save you money in the long term. And, of course, you’ll have the benefit of knowing that lower emissions are better for the environment.
Insurance for low emission cars works in much the same way as insurance for any other car, so the tactics for keeping costs down will be similar. These include:
Driving an electric or hybrid car could mean that insurance costs a bit more compared with an equivalent petrol or diesel model, thanks to higher repair costs. But driving a low emission car is unlikely to have as big an impact on the cost of car insurance as other factors, such as your driving history and where you live. If you drive a plug-in hybrid or electric car, make sure you’re covered for loss of or injury caused by the charging cables. And, as with insurance for any other car, there are plenty of ways to keep costs to a minimum.
| Response | Female | Male |
|---|---|---|
| No | 54.97% | 46.47% |
| Yes | 45.03% | 53.53% |
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