Direct Line named as one of the UK’s most competitive car insurers

An independent benchmark report into car insurance has shown that Direct Line is the UK’s most competitive major insurer.

The findings reinforce Direct Line’s position as one of the few household names to offer both competitive premiums, and genuinely unique product benefits.

The Deloitte Quarterly Motor Insurance Market Report reviews the prices offered for 1000 risks by 12 internet and 169 broker insurer schemes and ranks these providers’ competitiveness. Direct Line, the UK’s largest private car insurer, offered one of the top three cheapest quotes on 257 occasions, placing it above Esure (7) and Norwich Union Direct (11).

However consumers should be aware that insurance should not be purchased on price alone and the benefits that the policy offers should be considered.

Paul Baxter, Head of Car Insurance, Direct Line, said: “Many consumers mistakenly believe that they can get full product information and the best deal from price comparison sites however, they are simply ‘on-line’ middlemen. Direct Line car insurance is only available direct from the insurer, either online, or on the telephone and cannot be found on price comparison sites.”

Price comparison sites do not offer as comprehensive a service as many consumers believe. In research by Direct Line, 41% of consumers mistakenly believe price comparison websites quote all major insurers and 35% believe ALL insurers, both big and small, are quoted. Whereas actually, none of the sites provide a full round up of the market plus consumers are unable to compare product benefits and nearly nine times out of ten the price offered by the price comparison site is different to the one consumers can get by going direct.

One of the main issues for consumers using comparison sites is that the result table of the ‘best deals’ is based purely on the cheapest quote possible first, which may not necessarily be the best deal for the individual. Because consumers are unable to search for benefits or discounts with the individual insurer, they may unwittingly be missing out on a better deal.

For example, Direct Line is the only insurer in the UK to offer a no claims discount to named drivers, second car discounts and a unique uninsured driver promise to its policyholders. If a customer is hit by an uninsured driver they will not pay an excess and their NCD will remain unaffected. Furthermore the company offers matched NCD for drivers of two or more cars plus a range of cross product discounts and benefits. The company is currently offering 0% interest for customers wishing to pay by monthly instalments.

Paul Baxter, Head of Car Insurance, Direct Line said: “This report shows that Direct Line continues to offer our customers some of the most competitive premiums on the market, but it is about more than just price – we offer our customers innovative and appealing product features and excellent service.

“We won’t follow other providers who will strip down their products, provide poor service and limited cover so that they can post the cheapest possible quotes on price comparison websites.”