Firm offers own comparison option

Insurance giant Norwich Union is allowing potential customers to compare the cost of its motor insurance with other providers.

But the launch of the new service follows an announcement by the company that it plans to withdraw all of its direct products from price comparison websites, making it harder for consumers to compare the cost of its deals across the market.

Those wishing to obtain a Norwich Union motor insurance quote on its website or by telephone will be able to compare the cost with quotes from three of a panel of nine other insurers.

The group said it hoped that giving people the chance to compare its policies and their cost with other insurers would make them realise what good value it offered.

It defended its decision to pull out of price comparison websites, saying it was a direct insurer and it wanted people to buy their cover direct from it.

David Tyers, director of marketing at Norwich Union, said: "The truth is no insurer is cheapest all of the time; the difference is we will tell customers when we are and when we are not.

"But clearly we hope that we will be competitive for many customers and we know, as a package, our motor insurance represents great value and people will choose to buy from us."

Copyright © PA Business 2008