Nelson Insurance

Confused.com, the insurance specialist, has claimed that despite the company’s claims Direct Line is not the most competitive car insurance company, and around 90% of customers may be able to get a better deal on their cover elsewhere. Recently, Direct Line has been launching a campaign, with marketing materials that claim ‘Direct Line is the UK’s most competitive major insurer’.

The marketing and publicity comes after a quarterly report, in the Deloitte Quarterly Motor Insurance Market Report, showed that in over 250 insurance based scenarios Direct Line gave amongst the cheapest quotes. However, there were a thousand scenarios in all, and according to Confused.com Direct Line only gave the most competitive quote in 8% of the situations.

One official from Confused.com stated: ‘In publicising this report, Direct Line is highlighting the fact that over 90% of customers, and perhaps more, will find cheaper car insurance with other providers. What’s more, if this report covered 100% of the insurance market, Direct Line would undoubtedly fall below its current 8% for competitiveness. What better argument is there for using a price comparison site? We’ve no doubt that for certain types of risk Direct Line may well be competitive, however how would anyone know if they refuse to allow their prices to be compared against the rest of the market?’

Confused.com officials also stated that there are far more competitive insurance companies out there, and that the Deloitte Quarterly Motor Insurance Market Report did not take all major insurers into account when conducting the study, hence the overall result could not be considered truly accurate.

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