Picking Up Some Car Insurance While Grocery Shopping

Tesco was the first large UK supermarket chain to offer car insurance. Not to be outdone, Sainsbury’s is now following. On Monday, the supermarket will announce its venture into the auto insurance industry. Customers will be able to pick up coverage for their BMW when they purchase milk and eggs.

Though the convenience factor is something that drivers may appreciate, they might like the price relief even more.

RBS Insurance will serve as underwriter for the auto insurance offered by Sainsbury’s. The decision to offer car insurance is part of a plan to expand Sainsbury’s Finance. David Fisher, Sainsbury’s Finance chief executive, stated that premiums will be competitive.

In addition, a double Nectar points initiative will enable drivers to save money at the forecourt and in store.

Mr. Fisher revealed that a five-year plan for the company involves growing its insurance business. Crucial to this strategy is vehicle insurance. Though Tesco blazed the trail, Sainsbury’s plans to give its competitor a run for its money.

Tesco is now busy planning its move into the retail banking sector.

Sainsbury’s plans to offer both standard and premier vehicle insurance products. Nectar cardholders will receive a 15 percent premium discount. For a period of two years, they will also get double Nectar points for shopping purposes.

This equates to an approximate one percent discount on their shopping bill. This extra cash can be used for things like household bills or excess payments on car loans.

Any UK resident who does not have a Nectar loyalty card should consider getting one. Suppliers participating in this program in addition to Sainsbury’s include BP and American Express. Consumers earn points for in-store and certain affiliated online retailer purchases.

As of 2010, Nectar overtook Tesco Clubcard to reign as the most popular loyalty card in the UK.