Churchill has become the first direct writer to win a place on the AA motor insurance panel.

Sales handling and administration will be handled by the AA's motor insurance division, and all policy documents and literature will be branded 'AA'.

The policy document will be common to all AA customers but claims themselves will be handled by Churchill.

Chief executive Martin Long said "The industry is rapidly changing shape with the key players becoming involved in all distribution channels.

"Churchill has a multi-channel distribution strategy so it makes good sense for us to join the panel of the UK's number one car insurance intermediary."

Churchill Insurance underwrites and administers branded car insurance schemes for a variety of high street organisations including the Halifax, Lloyds TSB and Birmingham Midshires, and produces home insurance policies for the Co-operative Bank and United Friendly.