A new survey has found that insurance on a 'green' car can be as much as £50 more expensive than on a car that is not as environmentally friendly.

Research by comparison site tescocompare.com also found that around two million people in the UK claim to drive an environmentally friendly car and that around 21 million would do so if there were incentives or the vehicles themselves were cheaper.

The figures reveal that 62 per cent of people would change to a more environmentally-friendly vehicle if road tax was reduced.

A rise in fuel costs would be enough to convince 25 per cent of drivers would switch to a 'green' car, while 36 per cent would change if parking fees were cheaper for such cars.

Paul Baxter, from the comparison site, said: "The message that the British driver is sending to the government is emphatic - they are happy to embrace green driving but want to be rewarded for doing so."

Tesco also noted that if the government was to cut the five per cent premium on tax, then more people could be persuaded as the cars would be cheaper to insure.

In a survey conducted earlier this year, the Environmental Transport Association found that 65 per cent of motorists did not 'have a clue' about how much CO2 their cars produced.

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