Go-Reviews.com  Product Reviews & Buying Guides
 
GO REVIEWS HOME
BLOG
 
Car Insurance Index
 
About Car Insurance
Car Insurance FAQ's
Affordable Auto Insurance
Affordable Car Insurance
Auto Insurance Definitions
Auto Insurance Questions
Cheap Auto Insurance Tactics
Online Car Insurance
 
Auto Insurance Quotes
Insurance Quotes
Auto Insurance Quotes
Auto Insurance Online Quote
Auto Insurance Quote Online
Auto Insurance Quote Comparison
Online Auto Insurance Quote
Online Car Insurance Quote
 
Car Insurance Rates
Bad Credit Car Insurance
Cheap Auto Insurance Online
Cheap Auto Insurance Rates
Cheap Auto Insurance Teenagers
Low Cost Auto Insurance
Online Car Insurance Rates
 
Car Insurance By Type
Antique Car Insurance
Classic Cars Insurance
Car Collectors Insurance
Car Insurance For Women
Car Insurance Teenagers
Motorcycle Insurance
Rental Car Insurance
RV Insurance
Sports Car Insurance
Student Car Insurance
 
Car Insurance By Region
Auto Insurance California
California Insurance Company Ratings
Best Auto Insurance California
Car Insurane Chicago
New Jersey Auto Insurance
New York Car Insurance
Texas Car Insurance
 
Car Insurance Companies
Admiral Car Insurance
Insurance Company Ratings
Progressive Auto Insurance
State Farm Insurance
Tesco Car Insurance
 
RESOURCES
Product Recalls
Links

Bread, Milk & Car Insurance


With increased competition between supermarkets to gain market share and improve profitability, the range of products on offer is getting ever diverse. Now, the big three chains, Tesco, Sainsbury s and Asda have caught on to the fact that their brand name can sell just about anything, including of all things, car insurance.

Car insurance is one of those very boring expensive products that you loathe having to pay for but have no choice if you want to drive a car on Britain s roads. Why therefore would supermarkets want to be associated with such a seemingly expensive pain in the pocket? Well it seems that the public think it s a great idea and are buying it from these stores in their thousands with the belief that it must cheap if the supermarkets are selling it. The strange thing is that the companies behind these deals, who are actually underwriting the injury claim risk, are the same companies who have been selling you car insurance for years.

Tesco for example seem to be incredibly successful in selling motor insurance to their customers with statements proclaiming that you could save up to 150 compared to some leading insurers. Tesco of course is not an insurer. If you look closely at the bottom of the Tesco car insurance webpage, you will notice it says that the policy is provided and underwritten by a company called UK Insurance Limited. Who on earth is this company you may ask. UK Insurance Limited is part of Royal Bank of Scotland who also own Direct Line along with Churchill and Privilege.

Sainsbury s state that you could save up to 165 on your car insurance compared to other leading insurers - 15 better than Tesco. Of course, like Tesco, Sainsbury s is not an insurer either. A quick look at their webpage shows that policies are arranged and administered by Esure, who are part of the Halifax Bank of Scotland group. Maybe Sainsbury s are about to swap Jamie Oliver for Michael Winner maybe not.

Asda state that they give you the very best possible insurance protection and offer a 10% discount if you buy online. Of course, just like Tesco and Sainsbury s, Asda is not an insurer. Asda have opted to team up with Norwich Union to provide their policies.

The insurers are desperate to get into bed with the Supermarkets. It enables them to dress up their car insurance product with an already well known and trusted brand name. This is good business and a smart way to gain lots of new customers very quickly. Ironically though, some of those new customers may already be with that insurer. Without knowing it, they may end up cancelling or not renewing their existing policy but staying with the same insurance company via the cheaper supermarket option.

From a customer perspective, the upshot of all this will hopefully be to get cheaper car insurance, which at the end of the day is what everybody wants. Who the insurer is behind the deal is probably not of great concern to people. In the long term, whether the actual underwriting results of these deals are profitable enough for the insurers to continue to offer the supermarkets good rates for their customers, will be interesting. One thing is for sure, I don t see Direct Line advertising bananas six for a pound anytime soon.

Copyright (c) 2004 AcceptDirect.co.uk http://www.acceptdirect.co.uk

Andrew Bowen is the CEO of Accept Direct Limited. Accept Direct offer car insurance to UK customers through their website http://www.acceptdirect.co.uk

 

Car Insurance Resources

 

 
Bookmark and Share

GET LATEST PRODUCT REVIEWS
AND BUYING GUIDES BY EMAIL

Email:
Name: