Shopping for car insurance is not easy. There are so many alternatives, how to pick the right one? We have gathered the most useful and up to date information for buying and choosing the right car insurance. We hope this site proves useful for you in your quest! Don't forget to bookmark us and come back often!

Bread, Milk & Car Insurance

by Andrew Bowen


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 risk, are the same companies

Cars at up to 90% off the book value!

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,

      Get a free brand new car!

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

Related Articles

Top 10 tips to save money on your car insurance - Paul Johnson
So, your car insurance is up for renewal…but the premium has gone up again! Shouldn’t it be going down! If you’re fed up paying too much for your car insurance duck2water (www.duck2watercarinsurance.co.uk) have put together the top ten ways you can...

Car Insurance How Can I Lower My Premiums? - Michael Challiner
During the last few years, the average car insurance premium has virtually been at a stand still. The reason is price competition. There are now over 100 car insurance companies fighting for your business and competition is fierce. There are...

How to Put More Muscle in Collectible Car Insurance Policies - ARA
(ARA) - Baby boomers are notorious for spending big bucks on things that remind them of their childhood. Old Spiderman comic books, memorabilia from television shows like The Brady Bunch and All in the Family, and muscle cars -- with their small...

Car Insurance – Get Insured Or Say Goodbye To Your Car - Michael Challiner
Car insurance is a legal requirement in the UK, but one in twenty drivers persist in driving uninsured. The police are cracking down, and it’s not just an idle threat – if you’re not insured, your car could be in a crusher near you very shortly! ...

Lower The Cost Of Your Car Insurance - Evan Smith
Buying auto insurance is an important part of your overall financial planning. The auto insurance premium rate varies depending on the company and the type of policy coverage you choose to have. Here are some guidelines to lower the cost. Shop...

Female Car Insurance - Austin Davis
Female Auto Insurance Female auto insurance is almost similar to other normal auto insurances except for few distinguishing features. It is but necessary for all vehicle drivers to have sufficient insurance coverage irrespective of...

New Car Registrations and Car Insurance - Andrew Bowen
In September 2001 the Driver and Vehicle Licensing Agency (DVLA) introduced a new number plate registration system that was designed to last for 49 years. The new change was welcomed not only by the car dealers but also by the car insurance...

Need more information? Try a search:

Google

Latest news on Car Insurance

Brought to you by Yahoo News

From CNN and Money magazine, CNNMoney.com combines business news and in-depth market analysis with practical advice and answers to personal finance questions.
The new young investor: Shunning stocks
When 18-year-old Robert White decided to jumpstart his retirement plan, he invested his life savings of $25,000 into an aggressive mutual fund.

4 tips for caring for mom and dad
Caring for an ailing or aging parent is never easy, but the challenges only multiply when Mom and Dad live far away.

Will the next pop be the bond bubble bursting?
Question: I'm within five years of retirement and currently have about 35% of my investments in bond funds. With rising interest rates a likely scenario, how do I stay diversified without exposing myself to a "bond bubble"? -- John Clay, East Helena, Montana

Tired of living paycheck to paycheck
Question: I've been trying to be a little more thrifty lately. I realize that a lot of the luxuries Americans have are "wants" not "needs." Basically, I'd like to balance my household budget so I don't end up with just $30 at the end of the month. I'd even like to start building some savings. Any suggestions? --Kim, Idaho Falls, Idaho

Credit card debt at an 8-year low
The amount of credit card debt consumers are carrying dropped to an eight-year low and delinquencies continued to decline in the second quarter as consumers looked to shore up their savings.

6 steps to improve your credit score
Ready to embark on the quest for an 800 credit score?

The U.S. is a mess. Should we invest overseas?
Question: Looking into the future of the American economy, I see tons of debt, the yoke of increasing social spending, pork-fed bureaucratic waste, the exporting of jobs and the importing of poverty. While this may paint a negative picture, I feel it's reality. We all want to be patriotic, but aren't there more fiscally responsible places to invest in that may offer a better landscape? --Dave, Bethlehem, Penn.

RSS Parser
Increased Website Traffic