Online salvage company Bluecycle is looking to link with car dealers to launch a new service which will source used vehicles for policyholders after their car is written off.

The service will give policyholders the option to let the insurer find them a replacement vehicle based on their criteria, rather than receiving a cheque and sourcing their own.

Blue-cycle sourced 100 used cars during its six- month trial with Pen-dragon, supplying them to parent company Norwich Union’s policy-holders.

Following the completion of its trial period, Bluecycle is hoping to offer the service as a part of all Norwich Union policies and event-ually extend it to other insurers. It is seeking other dealer groups to help supply the vehicles, and is investigating offering home delivery and lease deals once it is more widely available.

James Russell, managing director of Bluecycle, is confident about the service. “Our first priority is to market the service to Norwich Union, so it can market it to its policyholders. But we need to set up a situation where we can manage the customer interface and get the right dealers involved.

“It’s a more efficient way of getting customers back on the road after a total loss. Initial feedback has shown that there are many policyholders who are very interested in avoiding the hassle of sourcing a new car themselves.”

Bluecycle was set up in 2000 by Norwich Union to help sell its total loss vehicle stock. The business is run independently, but with close ties to the insurer. It sells 1,000 vehicles each month through its online auctions.

Salvage partners include AG Watsons, Century Salvage and Mark Trent, as well as Norwich Union’s own stock. It is looking to offer its service to other insurers in the near future.