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Most Fuel Efficient Cars

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Last updated: 10/03/2021 | Estimated Reading Time: 4 minutes

You might be tempted, as many are, to make modifications to improve the looks and performance of your car. You might just want to install some alloy wheels, or you might go for a whole new body kit.

Whatever kind of modifications you want to make, you should be aware of the effects they may have on the cost of your insurance as your premiums will almost certainly go up.

We’ll explain why this is and how to avoid the cost of your policy going through the roof if you want to make modifications to your vehicle.

In This Guide:

Road tax savings

The savings you’ll make on fuel by driving a green car are just the start. You’ll also be making savings on tax and insurance, as well as helping to save the environment.

The price of road tax payable on a car is worked out based on fuel efficiency and C02 emissions. This means that the more economical your car, the less you’ll have to pay.

Cars fall into one of various bands for road tax, with those in band A, whose C02 emissions are 100g/km or less paying absolutely nothing. Cars in bands B and C (with emissions between 100 and 120) pay £20 and £30 respectively. The cost goes up as the emissions go up, with cars in the highest band, M, paying the most, at £475.

So by driving a green car, you could find yourself saving almost £500 on road tax.

Buyers of new cars will also face a ‘showroom’ tax, with those with the highest emissions paying up to £1,030 in the first year. As the buyer of a new green car, you’ll be exempt from this too.

Additionally, by driving a green car, you’ll also be exempt from paying the congestion charge in London, saving even more.

Insurance discount

Further still, many insurers will offer a discount to those driving green cars. Some providers offer a blanket 5% discount on the premiums of drivers of green cars.

List of cars

Peugeot 208 1.6 BlueHDI

The new Peugeot 208, released in June 2015, is being billed as the most fuel efficient non-hybrid car in the UK, hitting over 94mpg with emissions of just 79g/km, placing it in road tax band A.

BMW i3 Electric Car 12kW with Range Extender

With C02 emissions of a tiny 13g/km and a whopping 471mpg equivalent, the BMW i3 is arguably the most economical car on the road, but it does come with a price tag to match, with an average retail price of £29,130.

Toyota Prius

Possibly the most well-known hybrid car on the market, the Toyota Prius has been around for a while and in its various guises has consistently been a market leader when it comes to green transport.

VW e-Golf Electric Car

VW’s totally electric Golf, with its flat 0g/km C02 emissions and equivalent of 199mpg is a great option for those looking for a green hatchback, combining the timeless attraction of the Golf with the environment (and money) saving benefits of an electric car.

Nissan Leaf

Winner of both the European and World Car of the Year awards in 2011, Nissan’s totally electric Leaf is another market leader when it comes to small green cars. While it might not be ideal for longer journeys, it is ideal for inner city travel, going for 100 miles of one eight hour charge and emitting no C02 whatsoever.

Renault Twizy Electric Car/Van

Renault’s left-field offering, the Twizy, comes in both a car and a van form, though the ‘van’ label is used somewhat liberally for a vehicle not far off the size of a Smart car. The Twizy is unrivalled when it comes to price (available new for around £6,500), but its unconventional design and small size mean that it might not be for everyone.

This is just a small selection of the ever growing list of green cars available on the market at the moment.

If you choose to buy one of these, then be sure to use our car insurance comparison service to make sure that you can capitalise on what is already a long list of savings by getting the cheapest and best quotes available right now.

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