If ever a car was launched at the right time, it is Honda’s Insight.

With corporate minds concerned with costs and the environment, the Insight is not only the cheapest hybrid family car available, CO2 emissions of 101g/km make it an ideal green choice, too.

With a sub-£15,500 price, the Insight is £2,000 cheaper than its sister car, the Civic IMA Hybrid.

And although Toyota is yet to announce prices for its new Prius, the Insight should remain around £2,000 cheaper.

While being a hybrid is nothing new per se, the fact that the Insight is a practical five-door hatchback with such a competitive entry-price point opens up the world of greener petrol-electric motoring to a much wider fleet audience.

With its competitive front-end price and strong residual value prediction (CAP estimates it will be worth £6,500 in three years and 60,000 miles, or 42% of cost new), leasing rates are right in the mix of the volume hatchbacks, while VED of £15 a year and London congestion charge exemption add further plus points.

Honda is positioning the Insight as a rival to lower-medium hatchbacks such as the Focus and 308 (and the diesel Mini with its similar CO2) rather than restricting it to battling hybrids.

And there are few compromises in going down the hybrid route now.

Rather than the quirky styling of the Civic IMA, the Insight brings an angular yet neat look (with styling cues from the firm’s FCX fuel cell model) with enough room inside for five people, plus a decent boot.

While spacious, the interior plastics do look and feel brittle, lacking the quality we’ve come to expect from Honda.

On the road, the Insight is slow to build acceleration, but once up to speed settles into a relaxed cruise.

The continuously variable transmission can be annoying, holding on to high revs for too long and requiring the driver to blend off the accelerator to get it to change up.

Standard equipment levels are sector-standard, although move up to the higher trims and the larger wheels and weight of extra kit push CO2 emissions to 104g/km.

As a cost-effective fleet solution, the Insight fits the bill from both a company (low running costs) and driver (low BIK tax) persepective.

Fleet view

We have just taken delivery of 32 Insights on the Lloyds fleet. It is a really practical hybrid – useful as our drivers prefer hatchbacks to saloons.

I was keen to gain early experience of how these cars perform for drivers covering relatively high mileages.

Nigel Trotman, Lloyds TSB Autolease

Three rivals to consider

• Ford Focus 1.6 TDCi Studio
• Mini Clubman Cooper D
• Peugeot 308 1.6 HDi 90 Urban

P11d price

All entry-level models, but Ford’s recent price hikes make the basic Focus look pricey.
1. 308 £15,355
2. Insight £15,420
3. Clubman £15,660
4. Focus £15,955

Emissions and tax

The Honda will cost a 20% taxpayer £25 a month in BIK tax. The rest cost £34 a month.
1. Insight 101g/km/10%
2. Clubman 109g/km/13%
3. Focus 118g/km/13%
4. 308 120g/km/13%

SMR cost

Longer life tyres and brake pads save money for Honda, and Insight drivers will be ‘light’ on car.
1. Insight 1.60/£960
2. Focus 2.63/£1,578
3. 308 2.85/£1,710
4. Clubman 2.94/£1,764

Fuel costs

The Honda returns 64.2mpg, compared to 68.9 in the Mini (which uses more expensive diesel).
1. Insight 6.69/£4,014
2. Clubman 6.76/£4,056
3. 308 7.42/£4,452
4. Focus 7.43/£4,458

Depreciation costs

Rock solid 45% RV for the Mini, with Honda on 42%. Focus and 308 retain 25% of cost new.
1. Clubman 14.43/£8,658
2. Insight 14.86/£8,916
3. 308 19.30/£11,580
4. Focus 19.88/£11,928

Wholelife costs

Low price and strong RV put Honda first. Focus and 308 have heavy depreciation costs.
1. Insight 23.15/£13,890
2. Clubman 24.13/£14,478
3. 308 29.57/£17,742
4. Focus 29.94/£17,964

Winner: Honda Insight SE