Confused.com: Launch of Tesco Compare.com

In response to the launch of Tesco Compare.com, Debra Williams, Managing Director, Confused.com said: “We welcome Tesco Compare as a new entrant into the price comparison market if its name will encourage more people to shop online for their insurance; this can only be a good thing for consumers and beneficial to the sector overall. It’s also good to see that Tesco is following in Confused.com’s footsteps by offering guaranteed pricing combined with a comparison of individual policy features.

“With only 30 insurance brands on its panel, a quarter of which are owned by Royal Bank of Scotland (RBS), Tesco currently offers one of the least comprehensive services and will need to go someway to convince its customers of its impartiality. At the moment it’s fair to say that this is an exercise in “brand over breadth” for Tesco.

“In our experience, ‘best prices’ often come from smaller insurers who can provide consumers niche pricing. Unless Tesco significantly increases its panel of insurers, it’s highly likely that many, perhaps even most of its customers are missing out on the cheapest deals.

“It remains to be seen whether this is merely a commercial venture, designed to increase RBS’s market share by pitting itself against a selection of less competitive rivals, or whether Tesco is seriously committed to offering its customers a truly comprehensive comparison service.

“We don’t anticipate Tesco’s entry will have a major impact on Confused.com. Whilst we would never underestimate our competitors, Confused.com is the UK’s leading insurance comparison service and delivers over a third of all car insurance policies bought online.

“It is fantastic that RBS is finally changing its policy regarding services like ours, and we hope that it will now allow all of its insurance brands to be compared against the rest of the market by joining other comparison sites.

“It is also interesting that RBS – which provide Tesco with its insurance products – owns Direct Line, the one major insurance brand that refuses to allow consumers to compare its prices via comparison services, and has recently been attacking sites just like Tesco Compare. Perhaps they should talk…”