Don’t Just Buy The Cheapest Car Insurance

Many motorists look to buy the cheapest car insurance but this may not provide the best cover and may mean you end up spending more in the end.

Research by Sainsbury’s car insurance suggests that by not shopping around for car insurance cover as well as competitive premiums that motorists collectively fork out over £73 million a year extra because they find they are underinsured.

The findings reveal that over this period 2.4 million drivers have had to foot the bill for replacement car keys and child car seats, transport to get to their destination after an accident or courtesy cars after an accident – all because their car insurance policies didn’t provide the necessary cover.

Did you know for example that 61% of standard⁽¹⁾ car insurance products don’t offer a courtesy car as standard.

Or that cover for replacing child car seats is missing from three quarters of car insurance policies?⁽²⁾ And yet there is a need to replace them after being involved in a car accident.

Ben Tyte, Head of Sainsbury’s car insurance, said: “When choosing a car insurance provider it is vital motorists compare policies on a like-for-like basis; looking at price alone could have disastrous consequences. Of course, getting the most competitive price is important and we’d always urge motorists to shop around, but they need to make sure that this doesn’t result in a false economy.

“Those who don’t compare quality of cover and instead opt for the cheapest policy may find that they don’t have many benefits on their cover. Worse still, they might only discover they’re not covered at the time of having a bump or losing their keys for example; it could make for a stressful and costly experience that could have been avoided.”

MoneyHighStreet comments: “It is a fact that the cost of running a car is rising and people are looking for all sorts of ways to save money. When buying car insurance though, we very much agree with the comments from Ben, it really is vital to ensure you get the right cover for your needs and don’t just opt for the cheapest – the same goes for any insurance.

“There are steps you can take to help save money. For example if you are a young it might be beneficial to take out car insurance that is specifically designed for you. The Co-op for example have their Young Drivers insurance policy (find out more about it here) with which if you drive safely you qualify for Safer Driving Discounts to help reduce your premium.

“Also though as you look to get the best car insurance deal, carefully consider the cover you actually need. For example think about whether you need a courtesy car and what level of excess you are prepared to take.”

Sainsbury’s car insurance offers two options of cover, a standard policy and a Premier Cover option. Both products offer some of the widest range of cover and benefits available in the marketplace.

New Sainsbury’s car insurance customers benefit from double Nectar points on all Sainsbury’s shopping in-store, online and in petrol filling stations for two years; the saving equates to the equivalent of 2% off their Sainsbury’s purchases when paying along with their Nectar card⁽³⁾. For example, those spending £49 a week in-store at Sainsbury’s could, over a year, earn up to a week’s free shopping⁽⁴⁾.

⁽¹⁾ Defaqto research (May 2011), commissioned by Sainsbury’s Finance.  Defaqto is an independent financial research company. Defaqto have included the term ‘standard car insurance products’ as within their research they excluded a small number (10) of high net worth policies which are niche specialist policies.

⁽²⁾ Defaqto research (May 2011), commissioned by Sainsbury’s Finance.  Defaqto is an independent financial research company. Defaqto have included the term ‘standard car insurance products’ as within their research they excluded a small number (10) of high net worth policies which are niche specialist policies.

⁽³⁾ Double Nectar points available to customers purchasing comprehensive cover. The policy must be renewed at first renewal for double Nectar points to continue. See www.sainsburysfinance.co.uk/ for full terms and conditions. Points are not available on a limited range of Sainsbury’s goods and services.

⁽⁴⁾ Week’s free shopping earned by combining base points earned in-store/online and offer bonus points for 2 years when you collect double Nectar points with selected finance products. For example, £49 per weekly spend over a year earned 10,192 Nectar points = £50 approx to redeem in-store. Bonus Nectar points subject to a monthly maximum of 2,500 points per qualifying product type per month.