Drivers to benefit from more car insurance options to help lower prices as costs reach unaffordable levels
Drivers could soon benefit from more options when purchasing car insurance after Direct Line launched three new motor insurance products on Compare the Market.
The move marked the first time the insurance brand has appeared on price comparison websites with plans to expand across other comparison websites in 2025 allowing drivers the chance to get the best premium options for their car.
This historic move comes after years of Direct Line telling consumers it was not present on such platforms which meant drivers were having to buy directly from the insurer.
The new products offer a range of cover options from Essentials through to Premium, specifically designed for price comparison site customers.
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A key feature of these new offerings is digital-only servicing for policy management, though telephone support remains available for claims.
These products are distinct from Direct Line’s existing motor insurance offerings that are sold directly to customers, the insurer explained.
The move reflects Direct Line’s recognition that price comparison websites dominate the market, with 90 per cent of new policies now being purchased through these platforms.
This strategic shift represents a significant departure from Direct Line’s previous approach of selling exclusively through direct channels.
Adam Winslow, Chief Executive Officer at Direct Line Group, described the launch as “exciting”, highlighting the opportunity for customers to buy Direct Line motor insurance through their preferred channel.
“We are delivering a key pillar of our corporate strategy, demonstrating how we can move at pace to meet the changing needs of our customers,” he said.
According to PwC, motor insurance premiums have risen by over 20 per cent in the past two years, though rates are beginning to decrease.
PwC estimates that drivers in England and Wales could see an average saving of £50 on their motor insurance policies, representing a five per cent reduction.
Mohammad Khan, head of general insurance at PwC UK, noted that recent changes will “further intensify the competitiveness of the motor insurance market.”
The shift towards comparison websites reflects Direct Line’s recognition of evolving customer preferences in searching for insurance deals.
Mark Bailie, Chief Executive Officer at Compare the Market, added: “This launch marks an exciting moment for Compare the Market, we are thrilled to be entering into this exclusive partnership.
“Compare the Market has long been a leader in comparison services and adding Direct Line onto our insurance panel gives our customers even greater choice when looking for the right product.”
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Direct Line has confirmed it will continue to sell insurance products directly to consumers alongside its new comparison website offerings.