UK Car Insurance News

December 30, 2006

 

Norwich Union Simple Cover competes for no-frills car insurance market

Norwich Union, the UKs largest car insurer, has launched a low cost car insurance policy branded as Simple Cover.

A Simple Cover car insurance policy provides comprehensive cover whilst removing many of the extra's that it claims most policyholders never use and don't wish to pay for.

This no frills, budget policy follows announcements from Norwich Union that premiums for its standard motor policy are set to rise by as much as 40% over the next year. A spokesman for Norwich Union, David Ross said: 'None of the premium we take from policyholders is profit. It all goes towards paying out motor claims. Car insurance premiums have remained stable in recent years but the cost of claims has risen sharply.'

With premiums predicted to rise across the market, more and more insurers are set to lanuch budget car insurance policies in a bid to maintain their market share. Tesco has also entered the arena by launching Tesco Value Car Insurance which doesn't include options to protect your no claims bonus, has a higher excess and requires policyholders to use Tesco recommended repairers.

Norwich Union Simple Cover is designed along the same lines with personal accident cover, medical expenses and cover for driving other cars not included. In addition, premiums can only be paid on an annual basis which, Norwich Union claims, helps customers avoid additional administrative charges associated with paying premiums in instalments.

posted by UK Insurance Index  @ 2:50 PM

News items are intended for information only and should not be relied upon when making insurance decisions. Due to their nature some of the information in these news stories may no longer be current.