A promised grant of up to £5,000 towards the cost of an electric or ultra-low carbon car will not be affected by Government cutbacks, providing a welcome boost for those hunting for car insurance.
Transport Secretary Philip Hammond revealed that the funding - first announced by the Labour government - will begin in January 2011.
The grant will lower the cost of new ultra-low carbon vehicles by 25%, capped at £5,000.
The incentive has been agreed until the end of March 2012, and will be reviewed in January 2012.
According to the Department for Transport, the announcement of the incentive has been made before the completion of the autumn spending review in order to support the early market for ultra-low carbon cars.
Mr Hammond said: "The coalition Government is absolutely committed to low-carbon growth, tackling climate change and making our energy supply more secure.
"We are sending a clear signal that Britain is open for business and that we are committed to greening our economy. This will ensure that the UK is a world leader in low-emission vehicles."
The grant covers electric, plug-in hybrid or hydrogen fuel cell cars.
