Direct Line follows in the footsteps of Aviva
Direct Line Group is planning a more affordable car insurance policy for “struggling motorists.”
The policy will launch under the Churchill Insurance brand and will offer coverage for the policyholder’s vehicle and third party damage, but will strip out many extras, such as car hire, personal belongings, misfuelling (putting the wrong fuel in your car) and loss of keys. If this sounds familiar, it’s because Aviva has recently rolled out a lower cost coverage dubbed Quotemehappy.com Essentials that provides comprehensive car insurance without some coverage elements such as personal belongings, European cover and windscreen or glass only claims.
Details of this new product came as Direct Line said its new car insurance sales were down by ~9% after the insurer raised prices following a surge in claim costs.
“The pricing actions we have taken to restore margins in motor led to a reduction in new business sales, however, we were encouraged to see this improve steadily across the quarter as the market hardened. In the fourth quarter, we will launch a new product for customers challenged by the cost-of-living crisis and start rolling out more advanced digital claims capability. In these challenging economic conditions, the business is strong and actions we have taken continue to underpin the group’s future earnings power.” – Direct Line CEO Penny James.