Environmentally-friendly vehicles, such as electric and hybrid cars, can offer significant financial benefits to motorists, it has been claimed.

Paul Cosh, managing director of motorinsurance.co.uk, said that typically most hybrid cars are within the lower tax brands, although car insurance can still depend on a number of factors.

"Generally it is believed that electric and hybrid vehicles offer better fuel consumption, cheaper tax costs, and start in lower insurance bands, therefore reducing the overall running cost of the car," Mr Cosh remarked.

The widespread use of hybrid and electric vehicles may also help to bring repair costs down throughout the market.

In recent years, more firms have started offering ethical banking products to address the concerns of people who are concerned about the environment and Mr Cosh commented that insurers would adapt to fulfil the needs of these people.

“Today’s growing environmental concerns lead me to hope that people are becoming socially responsible. The insurance industry is always changing to meet new demands and changes, at motorinsurance.co.uk we aim to provide customers with the most comprehensive and cheapest cover possible” he concluded.