Ryanair swoops into car insurance market

26 June 2006 / by None
Leading low-cost airline Ryanair has announced it will begin offering insurance cover for motorists.

The company has expanded its product offerings outside the aviation industry recently, including home insurance on property abroad, travel insurance that it sells in tandem with airline tickets and credit card products.

The insurance on offer will be underwritten by Red Star, a mainstream insurance company that is part of the Equity Insurance Group.

Peter Gerrard, senior researcher for insuresupermarket.com, welcomed Ryanair's entrance into the insurance sector but dismissed suggestions it was in response to a similar announcement from rival Easyjet.

"It doesn't represent a direct competition to Easyjet," he said. "Easyjet already have a whole range of services. [Nevertheless] it's good to see more brands coming into the market."

Mr Gerrard said he thought the company would aim its products at the same market of consumers to which it sells airline tickets and said it would be good for competition in the insurance sector.

"Ryanair's offer is low in terms of costs, their cover seems quite comprehensive and also they have an introductory offer - if you take one of their policies you get the option win a convertible car.

"In the last few years, we have seen more providers bringing up policies. It will help bring prices down and more competition to the market."

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