Virgin General Insurance is 800% ahead of target on its motor offering, two months after launch.

The new entrant to the insurance market admits to having to increase staffing levels just one week after turning on the phones, due to higher than expected demand.

Virgin Money managing director Mark Hodgkinson said: "We realised almost straight away that we'd under-estimated demand, even though we'd been bullish on the targets.

"Clearly our great value proposition and 'No APR' promise for monthly payments are a big hit with consumers.

"It proves that there's room for Virgin in this crowded market."

The brand assurer also confirmed that it had no commercial agreement in place to sell on failed leads for its motor, home, pet and travel products.

The company is currently passing these customers on to Biba.

Hodgkinson added: "Although our decline rate is very low, we wouldn't feel comfortable simply putting down the phone and leaving a customer to it if we can't help.

"In our view, giving them another set of options is part of offering great customer service."

Virgin general insurance is underwritten and administered through UKI.