The idea for First Alternative was conceived in 2003 by the company’s Chairman, Peter Wood. Peter pioneered the direct selling of insurance over the telephone in the UK back in 1985, when he launched Direct Line and revolutionised the way that insurance is sold.

With backing from the HBOS Group - and approval from the Financial Services Authority - First Alternative launched its motor insurance product in April 2004 under Chief Executive, Colin Batabyal. The company will run alongside esure - also founded by Peter Wood in 2001 - and between the two companies they aim to offer cover to around 95% of drivers.

First Alternative estimates that around 40% (approx 10 million motorists) of private motorists could be classified as non-standard because of the car they drive, their driving history (claims and convictions) or other personal attributes such as age or occupation.

With drivers buying more high value cars and incurring more traffic enforcement penalties per capita, an increasing number of drivers are moving into the non-standard market. To date, the number of providers has not kept pace and many drivers have ended up paying high premiums and up to 20% commission if they buy through brokers.

The First Alternative product offers drivers the opportunity to build up to 75% no claims discount - unlike most other companies who offer only 65%. The First Alternative company also provides Comprehensive policyholders with courtesy cars while their own are being repaired at one of the company’s network of repairers.