Cheaper insurance for hybrids

• More Than provides hybrid insurance offer
• Typical motorist could save up to £96 a year
• Existing policy holders' premiums will fall

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Car insurer More Than is offering discounts to motorists with hybrid cars.

Instead of giving quotes based on the actual insurance group of hybrid cars such as the Toyota Prius, More Than says it will now quote as if it were two groups lower. Existing owners insured with the company will see their premiums fall.

How much the reduction in insurance groups is worth to motorists will depend on their particular circumstances. The typical motorist used by whatcar.com for illustrative quotes, a married 30-year-old accountant with a clean licence living in Swindon, would save around £47 a year.

The same savings would be on offer in the Honda Civic, which has the same insurance groups as the Prius, while a typical Lexus RX400h owner could save up to £96 a year.

Keith Maxwell, head of motor insurance at More Than insurance, says: 'Green motoring is going to be a massive growth area for the car industry as petrol prices continue to rise and concern over global warming grows. We want to financially reward drivers who are taking steps to do their bit for the environment.'

Motorists should still shop around - its possible rival companies will be able to offer cheaper cover, even based on the higher, actual insurance ratings.

Research by More Than found that 70% of UK motorists would switch to a hybrid if it could be proved it was cheaper to run. Over half said they could be tempted if tax was reduced, while 58% would consider the move if insurance was cheaper.