Ibuyeco Car Insurance Review

Posted: 05 February 2008 by Jenny Rhodes

Ibuyeco is one of a handful of green car insurers offering an easy way to make a positive contribution to reducing carbon impacts. Launched in June 2007 on World Environment Day by insurance underwriter BGL, it sparked the introduction of a range of other environmentally friendly car insurers.

Simply, if you insure with Ibuyeco, you pay a small additional sum on top of your premium to offset 100 per cent of your vehicle's carbon emissions. It has been trumpeting its success, claiming to have saved around 25,000 tonnes of carbon through its policies. This is the equivalent to the annual emissions of 4,464 UK households -- an impressive result.

So, how does it work? Ibuyeco works out your car's annual carbon emissions based on your vehicle and mileage. These are calculated according to Department for Environment, Food and Rural Affairs (DEFRA) guidelines and are based on the car's engine size, fuel type and annual mileage.

Customers then get two quotes -- one for the premium, the other for the cost of 100 per cent offsetting of their car's carbon footprint. The average additional offset fee now stands at around £20 on a typical family's annual mileage on a Ford Focus, showing it doesn't cost much to ease your ethical conscience.

Ibuyeco works with the leading CO2 offsetting company, The CarbonNeutral Company (TCNC). It funds energy efficiency and renewable energy projects at home and abroad. Their policy compares favourably with many other car insurers in the green camp, who often complicate their green credentials by offsetting smaller percentages.

Ecoinsurance, from Co-operative Insurance, offsets 20 per cent of each policyholder's carbon emissions, and More Than offers all new customers free carbon offsetting for the first 3,000 miles, provided the policy is bought online at Together, a government initiative to fight climate change. Newcomer to the market The Green Insurance Company, however, also offsets 100 per cent of carbon emissions, and in addition invests five per cent of its annual profits into sustainable environmental projects.

We've got to say that despite all that we're a tad sceptical of Ibuyeco -- mainly because of the limited green track record of the parent company, BGL. With that kind of background, it's easy to wonder if the policy's just a marketing gimmick. And to tell the truth, even though the carbon offsetting is definite plus for a car insurance, we don't generally like it -- it's really just removing the blame, after all.