Tesco Finance Seek Abolition Of Insurance Premium Tax On Green Cars

The car insurance division of Tesco Finance has asked the chancellor of the exchequer to remove the insurance premium tax (IPT) paid on eco-friendly vehicles in order to better promote a green mindset in the UK.

Typically, owners of the well known Toyota Prius hybrid vehicle pay around GBP50 per year more for their insurance than owners of other similar sized cars. The reason for this is the additional costs of repair incurred by the Prius over more traditional models. Tesco Finance would like the cost of insurance to be the same for both types and the abolishment of IPT would achieve this parity.

In the meantime, and with hybrid vehicles still thin on the ground, Tesco Finance have compiled some suggestions for owners to do their bit for the environment. The obvious one of doing less miles is there, as well as regularly checking tyre pressures to ensure they are correct. Underinflated tyres cause more drag, leading to increased fuel consumption.