A range of competitively priced policies and premiums are now on the market, with CIS eco-insurance strongly commended for being both affordable and good for the environment.

Assuming the driver was a 35-year-old woman driving a 2004 Toyota Prius in reasonable condition, she would pay £307.83 for the CIS eco-insurance product analysed by moneysupermarket.com.

That product offsets 20 per cent of the car’s emissions by making investments in reforestation projects, renewable energy sources or education in developing countries.

Other good offers include the ibuyeco.co.uk insurance offer, which is slightly pricier at £431.64, said the financial site.

This newly launched carbon-neutral company promises to offset 100 per cent of your car’s emissions.

Meanwhile, More Than will offer owners of hybrid cars a premium quote one or two bands lower than its actual value, making it better value than buying insurance for a conventional fuel car in the same price bracket.

Sales of hybrid cars doubled in the UK over the last 12 months, and as more customers flock to eco-friendly lifestyle choices, the price of ‘eco-premiums’ is likely to fall further.

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