Peugeot intends to steer increasing volumes of accident repair work through its franchised bodyshops with its new online insurance service.

A spokeswoman said Peugeot Insurance, set up with Cox Insurance, “guarantees that accident repair work will go through the Peugeot network, unless customers specify that they want to go elsewhere”.

She believed few would go outside the network because “our dealers use original parts and have the necessary expertise”.

In a two-pronged attack, consumers can access www.Peugeot.co.uk to buy insurance themselves, or purchase the policy in the showroom.

“If the customer has not been exposed to the product, the dealer will take them through it, explaining the benefits like they would with finance. They can sign the deal there and then,” said the spokeswoman.

An immediate quotation, leading to instant cover, can be obtained by answering six questions, with only basic information required. Payment can be made online by instalments.

“If the dealer sells the product, they receive commission, but that doesn't affect the price of the policy,” added the spokeswoman.