Direct Line advertising could confuse consumers

Confused.com, UK insurance search engine, has hit back at Direct Line’s new advertising campaign which suggests that buying insurance via online comparison sites could mean consumers miss out.

Online price comparison sites are acknowledged to have driven down costs for both consumers and insurers by simplifying the process of buying insurance and allowing more transparent price comparisons. Confused.com - which pioneered the comparison of car insurance online, and provides quotes from 97% of all insurers - estimates that almost half of all car insurance bought online is purchased via its site.

The RBS Group – which includes Direct Line - is the only major insurance group that has consistently refused to allow consumers to compare its prices against other insurers via any price comparison site. Direct Line’s current advertising claims that buying via a comparison site could mean consumers miss out on additional insurance benefits.

Confused.com’s Managing Director, Debra Williams said: “Direct Line’s claims simply don’t stand up to scrutiny. Alongside price, Confused.com also compares additional benefits such as courtesy cars, discounts on other services and money-back offers.

“This looks like an act of desperation from an increasingly uncompetitive Direct Line. It’s a shame it won’t allow its quotes to be compared through independent price comparison sites like Confused.com. But there may be a reason – our initial research suggests that nine times out of ten Direct Line’s quotes wouldn’t feature in our top five cheapest prices. And in some cases, Direct Line doesn’t even make the top ten.”

In a further move to drive down insurance prices and increase choice for consumers, Confused.com is introducing a new charging structure for insurers. In future, Confused.com will charge less to those insurers who do not simply cherry-pick the lowest-risk drivers, but instead provide a wider range of quotes to a broader range of people.

Debra Williams explained: “As the price comparison market has matured, insurers have become more price-creative. We want to ensure as many consumers as possible are provided with a range of competitive quotes, to maximise consumer choice.

“Our new pricing is taking a lead in the marketplace to ensure that the consumer continues to benefit from competitive prices from a broader range of providers.”