Drivers could find a higher amount of the personal loan taken out to purchase a car spent on insurance if they choose environmentally friendly policies, new figures reveal.

According to research by moneysupermarket.com, those choosing green cover could find see their insurance premiums rise by 44 per cent, compared to a standard insurance policy.

Insurance director for the financial comparison website, Richard Mason said: "Drivers are increasingly concerned about their impact on the environment and in an effort to ‘go green’ many may be tempted to opt for eco-friendly car insurance."

However, he advised those looking to spend their personal loan efficiently should "shop around for the cheapest deal that meets your needs and give some of the money you save direct to eco-friendly causes".

Earlier this month, research from Moneyextra suggested that by applying for a cheap personal loan ahead of showroom finance deals, motorists could save thousands of pounds.

Interfinancial providing you with breaking car loans news.