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Sainsbury’s Car Insurance offers discount to Nectar card holders

6th June 2011 Print

In the face of increasing motoring costs, Sainsbury’s Finance is launching a new car offering that will see Sainsbury's shoppers able to save on their car insurance premiums as well as saving on their Sainsbury's shopping and petrol.

The new car insurance products, aimed to help motorists tackle their running costs, will see customers with a Nectar card receive a discount of up to 15% on their premiums, and the opportunity to earn double Nectar points on their shopping for two years - equivalent to an extra 1% off their bills. For those regularly spending £100 a week, the additional saving could be as much as £52 a year which is equivalent to 6.4% of the average car insurance premium.

There are two options of Sainsbury’s Car Insurance cover, a standard policy, and a Premier product that offers enhanced features such as a like for like courtesy car for the duration of any repairs - something that only 1.9% of policies in the market offer.  Both products offer some of the widest range of cover and benefits available in the marketplace. 

The supermarket bank's research reveals that the average annual cost of running a car has increased by around 21.1% since April last year.  The key factors behind this rise are an increase of 30.7% to average car insurance premiums since April 2010, and a typical rise in fuel costs of 22.9% over the same period. The average car owner is now spending around £1,720.69 per year to fuel their vehicle. These alone accounted for £511.93 in additional costs to the typical motorist.

Ben Tyte, Head of Motor Insurance, Sainsbury’s Finance said: “The family car is vital to most of us, and with the majority of us feeling the pinch when it comes to running them, we're delighted to be able to offer the Sainsbury's shopper the chance to keep the cost of motoring down with a very attractive discount on their car insurance premiums and the ability to save money on their shopping in store and also their fuel.”

Sainsbury’s Finance research found that just 18% of motorists will not consider switching their car insurance, obtaining no further car insurance quotes at their next renewal.  However 2.29 million motorists will obtain over five quotes themselves and 51.2% of motorists will additionally use money aggregator sites.  One in three (34%) motorists intend to obtain more quotes than the last time they insured their cars, and only 3% say they will receive less.  

Overall, the findings reveal that 30.1 million motorists will try and obtain a better insurance quote for their car at their next renewal. With so many motorists looking to find cheaper car insurance premiums and switch insurer over the next 12 months this makes it an ideal time for the supermarket bank to launch its new car insurance offering.

Ben Tyte continued: “We believe the quality and uniqueness of our car insurance proposition will prove popular with the Sainsbury's shopper as they see the savings they can make on their premiums but also their weekly shop.

“We chose RBS Insurance as our new provider of motor insurance due to their in-depth market knowledge and sheer breadth and scale of expertise. They demonstrated a real understanding of our customers which enabled us to develop a bespoke car insurance offer specifically designed for the Sainsbury's shopper."  

As well as offering competitive premiums, both policies offer a comprehensive range of benefits and cover. For example, the two new Sainsbury’s Car Insurance policies enable all named drivers to earn their own no-claims discounts, which only 15.9% of policies allow.  Similarly, they both offer a courtesy cars as standard. Research from Defaqto shows that only 53.3% of policies across the market offer this (subject to availability).

Sainsbury’s Premier Cover Car Insurance also offers a range of other benefits including a guaranteed like for like courtesy car which means a family's large seven-seater will be matched with another so that they can carry on as normal for the duration of repairs – only 1.9% of policies offer this.   It is also among the 15.9% of policies that guarantee a courtesy car for 21 days or more following a total loss of your vehicle.

Ben Tyte, Head of Motor Insurance, Sainsbury's Finance said: “The cost of motoring has soared in recent months as all costs, but particularly fuel prices and insurance premiums, continue to rise. The cost of driving can be kept better in check by shopping around, particularly for fuel and car insurance, and we hope that more Sainsbury’s shoppers will consider us for both.”

To find out more about Sainsbury's new Car Insurance, visit or pick up a leaflet in store.