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Motorists looking for a way to drive down the cost of their UK car insurance premiums are being encouraged to consider green car insurance deals, with lucrative rewards to be handed out for the nations eco-friendly drivers.

By purchasing an ultra-low carbon vehicle, drivers could be entitled to up to £5,000 from the Department of Transport as an incentive to keep their carbon footprint down.

The carbon neutral car insurance scheme, labelled the Plug-in Car Grant, is set for release at the beginning of next year. The UK Government has fully endorsed the project, providing an initial £30 million of funding.

With ultimately stringent carbon emission reduction targets, Transport Secretary Lord Andrew Adonis hopes these added incentives will attract motorists to contribute to achieving those goals.

Lord Adonis said: "Decarbonising transport isn't an aspiration - it's a reality."

Eco friendly car insurance has become a pertinent issue in recent years, particularly after figures released by the Department of Transport showed an 85% increase in traffic on UK roads since 1980.

Carbon neutral car insurance providers donate a portion of your premium towards an eco charity, whilst giving you the option to offset your cars carbon emissions. This can go towards the funding of numerous projects that are working to help the wider world.

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