By using money from a personal loan for a car purchase an environmentally-friendly car insurance policy drivers can help offset carbon emissions, it has been revealed.

According to director of general insurance at Co-operative Insurance (CIS) David Neave, "greener driving" can be beneficial both to the environment and to consumers’ pockets.

He clamed the firm are "firm believers that every person can make a tiny difference to climate change" while at the same time avoiding "extra cost to themselves".

Mr Neave added taking out a motor loan to purchase a "green model" is desirable option for many car owners.

However, research conducted by moneysupermarket.com revealed that those taking out a personal loan to buy a new car could find more of their money being taken up to cover the costs of an eco-friendly car insurance policy.

The study revealed green cover is up to 44 per cent more expensive than standard premiums.

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