Qantas has entered the car insurance market with policies underwritten by Auto & General and plans to expand into home cover next year as it leverages the appeal of its frequent flyer program.

The airline is offering its 13 million frequent flyers up to 20,000 loyalty scheme points when they sign up to car insurance, as well as one point for every dollar spent on their premium and up to 6000 points for completing safety tasks such as brake and tyre checks and servicing.

“The power of Qantas points to influence purchasing decisions has seen us expand into new areas including financial services and insurance,” CEO Alan Joyce said.

“That’s opened up new revenue opportunities for us and new ways for members to get closer to their next holiday or upgrade.”

Mr Joyce says the added benefit of earning points has worked well with health insurance and credit cards and he expects car insurance to be popular for the same reason.

Qantas also offers travel insurance, underwritten by Lloyd’s and managed by Nib, and sells life policies issued by TAL.

The car insurance offering includes comprehensive, third party property, fire and theft and third party property.

Auto & General has operated in Australia since 2000 and is part of the Budget insurance group, which has expanded internationally after starting in South Africa.

The firm’s local brands include Budget Direct, 1st for Women and Ozicare. Auto & General also underwrites policies for other businesses that have expanded into general insurance, including Australia Post, Virgin Money and ING.

“Strategic partnerships with industry leading brands are core to our business model and underpin our future growth,” the company says on its website.

Further comment from Auto & General was not immediately available.