Tesco launches car insurance website

Supermarket giant Tesco today announced plans to launch a new website to help people shop around for car insurance.

Tesco Compare.com will compare motor insurance cover by price, as well as by more than 25 different policy features.

The group claimed it was the first time a UK supermarket would be offering personal finance products from a range of different providers.

The site, which will be available to consumers from Friday, includes policies from insurers such as Churchill, the AA, More Than, and Sheila’s Wheels. Tesco said it would be extending the number of providers in the near future.

The initiative is being run by Tesco Personal Finance and is being backed by the Royal Bank of Scotland Group.

Peter Dingle, managing director of Tesco Compare, said: “Our customers have been telling us they want more help in choosing their motor insurance. They want more than just the usual ’shop around’ tool for insurance premiums.

“We have placed great emphasis on the fact that our site not only compares price but also looks at individual policy features to allow users to make sure they are getting the right policy for them.

“We have also ensured that we get the best prices from our partners for our customers. There will be no extra costs or charges when it comes to paying your insurance, the price quoted will be the same as if the customer went direct.”

But commentators criticised the website, claiming that with only 30 different products to choose from it was not offering a wide choice across the whole market.

There was also criticism that the site would not include Direct Line, owned by Royal Bank of Scotland, but which does not allow details of its policies to be used in comparison websites.

Aron Thompson, head of insurance at uSwitch.com, said: “The internet is fast becoming the major route for the purchase of car insurance so it is good to see another player join the online price comparison market and raise awareness of the real benefits that these services can offer.”

Debra Williams, managing director of Confused.com, said: “We welcome Tesco Compare as a new entrant into the price comparison market if its name will encourage more people to shop online for their insurance, this can only be a good thing for consumers and beneficial to the sector overall.

“With only 30 insurance brands on its panel, a quarter of which are owned by Royal Bank of Scotland, Tesco currently offers one of the least comprehensive services and will need to go someway to convince its customers of its impartiality.”