Its policies are underwritten by the regulated subsidiary UK Insurance Limited, and it is owned by the Direct Line Group.

It was founded in Croydon by Martin Long and Peter Wood in 1985 as the insurance division of Royal Bank of Scotland.

[2] The mascot had altered slightly over the years; being accompanied by a red mouse on wheels to represent the company's website in 2005, which was dropped in 2020, with another re brand leaving the phone on its own once more.

[5] In December 2024, Direct Line launched three motor insurance products on the price comparison website which are available on Compare the Market.

[6] In January 2012, Direct Line, along with sister company Churchill Insurance, was fined £2.17m by the FSA, after being found guilty of altering complaints files.