The not-for-profit website will search leading insurance companies and deliver the best prices for customers seeking car insurance.
People visiting the site and purchasing their insurance policies will be invited to choose which charity they would like to donate to via a drop down box on screen.
Charities backing the initiative include The Pink Ribbon Foundation, Combat Stress, Global Cool, spina bifida charity SASBAH and FACT.
The website will be the first price comparison site in the UK to donate its profits to charity.
Hastings Direct said that in the current financial climate, many charities have felt the pinch as people have cut back on donations. People's Choice will offer the public the chance to save money on their insurance while money is donated to a charity on their behalf.
In addition to the donation per policy, Hastings Direct says it will donate "all other surplus profit" to charity.
Neil Utley, chairman of Hastings Direct, says: "The new website is the perfect solution for those who want to search for cheaper insurance and do something worthwhile at the same time. By simply choosing to purchase their insurance on People's Choice rather than a competitor comparison site, customers will be helping to raise money for charity without having to pay a penny more."
Utley says Hastings Direct is talking with other charities and "selecting them carefully. We are looking for charitable organisations that can be proactive and inventive in their promotion of this new way to raise money at a time when donors are feeling the squeeze."
The launch of People's Choice follows Hastings Direct's Insure Pink brand, which raises money for the Pink Ribbon Foundation via sales of motor, travel and home insurance.
The technology platform is being supplied by Insurance Wide, whose clients include AOL, eBay, Tiscali and Yahoo!
Hastings recently appointed All Response Media and EHS Brann Cirencester to its £8 million media planning and buying and direct marketing accounts respectively.
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