Suncorp subsidiary AAMI has unveiled a budget car insurance portal targeting consumers with a "no frills" sales catch.

AAMI says the new online insurer - Bingle - promises cheaper premiums by cutting perks it says most policyholders never use.

Bingle customers can only purchase car insurance and lodge claims through the website. While they can phone the company for assistance, its service is limited.

Executive Manager Nick Bell says scaling down customer services means Bingle can reduce premiums by up to 25%.

The website will only offer comprehensive car insurance for standard vehicles; prestige, modified or high performance models are not covered.

AAMI believes the online market for budget car insurance is largely untapped, and is confident Bingle won't bleed customers from other Suncorp companies.

But it will go head-to-head with other low-cost online car insurers, such as UK-owned Budget Direct, which issues more than 4500 policies each week.