Sainsbury’s launch Car Insurance Index

Sainsbury’s Bank has launched a Car Insurance Index to track market premiums on a quarterly basis.

It hopes that this will help highlight the huge differences in premiums charged by insurers, and encourage motorists to shop around more when purchasing cover.

Findings from the new Index, backed by research company Consumer Intelligence, reveal that during the period November 2004 to April 2005, Sainsbury’s Bank offered some of the most competitive premiums available and motorists could have saved up to £180 by switching to the bank.

The initial findings from the Index reveal that the average car insurance premium for the period November 2004 to April 2005 was £458.92. However, this compared to £512.06 for the 25% most expensive insurers and £403.51 for the 25% most competitive, which included Sainsbury’s Bank. If all motorists were insured with the most competitive 25% insurers, collectively they could save up to £1.17 billion in premiums a year.

Joanne Mallon, car insurance manager, Sainsbury’s Bank said: "The car insurance industry is very competitive, which is good news for motorists as they can save a lot of money by shopping around. Sadly, despite this, one in five motorists obtains only one quote when they buy car insurance.

"We have launched a multi-million pound marketing campaign around an animated till receipt that we have developed called Little Bill, who we hope will encourage motorists to shop around for their cover and contact us to see how much we might be able to save them. However, as well as competitive premiums, we also offer excellent cover."

The Index reveals that on average, women paid £91.54 less for their insurance than men. (£412.44 compared to £503.98).

Age also makes a huge difference to your premiums as motorists aged under 25 paid around £917.59 for their cover as opposed to £428.63 for those aged over 65.

According to the research company Consumer Intelligence, Sainsbury’s Bank is consistently one of the top 25% most competitive car insurers. Between November 2004 and April 2005 motorists switching to Sainsbury’s Bank could have saved up to £180. In addition to this, the bank’s car insurance also offers a wide range of benefits under its comprehensive cover as standard. This includes a free courtesy car, full no claims protection and a no claim discount of 70% if you have not made a claim in the past five years, rising to 75% after a further five years’ claims free driving with Sainsbury’s car insurance. It is also one of only a few providers to offer new for old replacement child car seats after an accident as a standard feature of its comprehensive policy, even when there is no perceived damage and support and compensation if you’re a victim of car jacking or road rage.

Sainsbury’s Bank’s car insurance marketing campaign broke on 6th June with a TV advertising campaign during Coronation Street. As well as national TV advertising, the campaign will also include in-store promotions, direct marketing and digital marketing activity around Little Bill.