Online comparator iSelect has signed a two-year distribution agreement with Auto & General Services that cuts commission rates while allowing it to sell a wider range of products.

South Africa-based Auto & General operates under the Budget brand in Australia.

The agreement – which extends a five-year commercial relationship – allows iSelect to sell an expanded range of Auto & General comprehensive motor vehicle insurance products.

“The strategy for our car business is to improve conversion metrics, expand the number of providers on the panel and increase the breadth of products we offer,” iSelect interim CEO David Chalmers said.

The cut in commissions will help the company accelerate growth and “better meet the needs of more price-conscious consumers”, he says.

The new rates will have a negative effect on 2013/14 second-half revenue and earnings before interest, tax, depreciation and amortisation of $1 million to $2 million, iSelect says.

The net financial effect will depend on sales volumes in the car business and the proportion of those sales referred to Auto & General.

A lead referral model outlined in the agreement will also allow iSelect to help consumers seeking home and contents insurance for the first time, according to the company.