Competition in the increasingly congested car insurance market is becoming increasingly aggressive, with new entrant Virgin Money accusing its rivals of “taking Australian motorists for a ride”.

As reported last week by insuranceNEWS.com.au, Virgin Money has launched Virgin-branded car insurance under a “white-label” agreement with South African-owned underwriter Auto & General Insurance.

Its entry into the car insurance market has been overshadowed in recent weeks by that of Australia Post, another Auto & General partner.

But Virgin Money MD Matt Buxby is confident his company can win business in the niche-ridden market – including winning customers from dominant local personal lines players such as Suncorp and IAG.

“The Australian car insurance industry is stagnant and has been dominated by two major players,” he said. “This is classic Virgin territory – challenge the competition and make the marketplace fairer for consumers.”

Virgin Money is attempting to sweeten its offer with capped premiums for two years and 13 months of cover for the price of 12.

The company plans to unveil other financial services products in the first quarter of next year.