One of the UK's largest insurance providers has revealed plans for a budget car insurance policy. The move is in response to the cost-of-living crisis affecting Britain's drivers.
Direct Line says its new basic, more affordable, policy is designed to help customers struggling to make ends meet. Details of the new basic cover came as Direct Line said new business motor sales tumbled 8.9% to £1.1bn in the first nine months of 2022 after it raised prices following a surge in claim costs.
Chief executive Penny James said the new policy will launch by the end of the year for “customers challenged by the cost-of-living crisis”. The policy, which will launch under its Churchill brand, will offer cover for the policyholder’s vehicle and third party damage, but strip out many extras, such as car hire, personal belongings, mis-fuelling and loss of keys to make it more affordable for cash-strapped policyholders.
