Say yes to cheaper van, home and car insurance

Mayor of London Ken Livingstone announced yesterday that drivers who own the worst polluting cars will have to pay a £25 congestion charge. He also said these motorists may not qualify for the 90 per cent residency discount.

He hopes that this new congestion charge ruling will encourage motorists to abandon the so-called Chelsea-tractors in favour of more environmentally friendly vehicles, like his own family car, the Toyota Prius.

The new £25 rate would apply to cars rated in band G for vehicle excise duty, which covers those emitting more than 225g of carbon dioxide per kilometre and could come into effect as soon as 2009. Vehicles in bands A and B would pay no additional charge.

"Most vehicles that will be charged £25 are high-priced models. Those who buy them can afford to choose from pretty much the whole of the mainstream car market, but have chosen to buy one of the most polluting vehicles," said Mr Livingstone.

"By making these changes to the congestion charging scheme we are encouraging people to take into account the impact of their choice of new car on the environment and the planet," he added.

Going green could also save you money on your car insurance, with many insurers now offering incentives for environmentally friendly motorists.