12 September 2007
The emergence of new price comparison sites for car insurance is good news for consumers, yet a "level playing field" must be created to ensure that they still receive the best deal, uSwitch has claimed.
The comments come after the announcement that Tesco Compare.com is to be launched with the backing of the Royal Bank of Scotland (RBS) Group.
Although uSwitch welcomes another player in the online price comparison market, it also expresses concerns over the effect of the new service on consumer choice.
RBS already controls over 30% of the current car insurance market through brands such as Churchill, Direct Line and Privilege, as well as partnerships with Virgin, Lloyds TSB and Nationwide.
Commenting on the news, Aron Thompson, Head of Insurance at uSwitch.com said:
"This is a particularly interesting move by the group that, to date, has not allowed any of its brands onto a price comparison service. We hope that RBS will now work with uSwitch.com and other comparison sites in order to create a level playing field so that consumers have a free and open market from which they can compare policies.
"The concept behind uSwitch.com's own motor insurance comparison and switching service is that consumers shouldn't compare policies on price alone. Our product includes a set of filters that enables motorists to compare the cover on a number of levels - from providers with UK-based call centres and a 24/7 claims helpline, to those that include a courtesy car and a replacement child car seat."
He concluded: "Following its recent adverts that campaigned against 'the middle man', it will be interesting to see if the RBS brand Direct Line continues its refusal to be listed against its peers - especially as Privilege, which is underwritten by Direct Line, is included on the Tesco site."