Peter Wood, Direct Line and Esure founder, has announced the launch of a new insurance company, First Alternative, in partnership with HBOS. It will target the four million drivers of performance cars and other motorists who pay high premiums.

The company, still waiting for approval from the Financial Services Authority, will be launched in early 2004. The London Evening Standard reports that Peter Wood expects the company to attract one million customers within five years.

The name came from a member of staff and was chosen after a long process of research and consultation. "We wanted a name that means something to motorists and also had the right combination of modernity and professionalism," said Peter Wood. "First Alternative fulfils these criteria and has the added bonus of lending itself extremely well to marketing campaigns."

The company will use the internet and the existing Esure infrastructure to reduce costs for both companies.

Colin Batabyal, chief executive of First Alternative, said: "The rating for drivers of higher performance cars has, to date, been poorly understood and therefore very imprecise. Many of these drivers have traditionally paid high premiums and gone to specialist brokers who charge commissions because of the lack of other options available to them."

And I wonder if they will get it right!

Rannoch

i doubt theyll be able to offer me a good deal!!! :(

We should be able to upgrade the engine for no extra cost as long as the brakes are upgraded etc etc....

If this is true, Other so-called "performance specialists" will get their act together and lower their rates. All good for the consumer.

simb