Apathy reigns - £50 sweet-spot to switch insurance

Apathy reigns - £50 sweet-spot to switch insurance

26 November 2019

UK car and home insurance holders say on average an annual £52.50 saving on premiums would be needed for them to switch provider

Research from Sainsbury’s Bank Insurance reveals the majority of people need a financial incentive to encourage them to change their insurance provider, with an average annual premium saving of £54.60 needed to switch car insurance and £50.40 triggering a change in home insurance provider.(1)

The study also showed that 27% of people with home insurance were still with the same provider they had five years ago – either because their last switch was before this time (13%) or, more worryingly, they have never changed their provider (14%)(1). Similarly 20% of those with car insurance remain with the provider they had five years ago, with 12% saying their last change was more than five years ago and 8% having never switched.(1)

Karen Hogg, Head of Insurance at Sainsbury’s Bank, said: “Securing a good deal is the motivating factor for people to switch insurance providers. Despite this, a high number of people have never changed provider, or have not switched for some time – thereby potentially missing out on financial savings.”

The supermarket bank warns that price shouldn’t be the only determining factor when it comes to switching insurance as policies vary dramatically in terms of the cover they provide and in the rewards they offer." 

Karen continued: “We constantly review our products to ensure we have a range which can be tailored to our customers’ different circumstances, whether that’s replacing expensive car keys, a five-year guarantee(8) on car repairs or providing alternative accommodation when there’s a problem in their home. Combining these with savings and the opportunity to earn more Nectar points also helps with their day-to-day shopping and petrol costs.”

Sainsbury’s shoppers who are Nectar members(9) who typically spend £100 in store or online a week, and a further £50 on fuel each month, could earn as much as £57.20 worth of Nectar points a year if they have Sainsbury’s car or home insurance(7) and £85 if they have both policies with the supermarket bank(7).

Sainsbury’s Bank’s average car insurance premium(7) during August and September was £429.09 and £160.89 for home insurance, so the potential saving that can be made in store by redeeming earned Nectar points could make a big difference to a household’s annual outgoings.

Sainsbury’s shoppers with a Nectar card can also benefit from a guaranteed discount(6) on their policy premium when they take out a new car or home insurance policy.

Sainsbury’s Bank’s car and home insurance products have both been given a 5-star rating by Defaqto in 2019, meaning they are considered one of the highest quality offerings in the market.(4)(15)

Customers can find out more online at https://www.sainsburysbank.co.uk/insuring/ins_insuring_zone, to get a quote and pick the insurance cover to suit them.


ENDS


For further information, please contact:
Sainsbury’s Bank press office 0131 286 0010 / [email protected]


Notes to editor:
This press release is information for journalists only and is not intended to be a promotion to be acted upon by consumers.
(1) Sainsbury’s Bank commissioned Opinium to survey 2,008 nationally representative UK adults aged 18+ between 30 and 31 July 2019.
(2) Sainsbury’s Bank Home Insurance is underwritten by a carefully selected range of insurers. We offer two levels of insurance for buildings and contents. You can then add our optional extras, for an additional cost, to build your insurance policy so it is right for you.
(3) Sainsbury's Bank Car Insurance is arranged and administered by Sainsbury's Bank and is underwritten by a carefully selected range of insurers. When you get a quote we will tell you who the insurer is before you buy the policy. You can choose from comprehensive or third party, fire and theft when you buy our car insurance and depending on which one you go for, you can choose to add extra cover, at an additional cost, for even more protection.
(4) Defaqto: 2019 Home Insurance 5-star ratings list
(5) Defaqto: 2019 Car Insurance 5-star ratings list
(6) Guaranteed discount for Nectar card holders: The discount is based on information related to you and the transactions you've made with Sainsbury's supermarkets and Sainsbury's Bank using your Nectar card. For more information go to sainsburysbank.co.uk/nectar. Double Nectar points are only available to customers buying a new Sainsbury's Bank Home Insurance or Car Insurance policy. You need to tell us your Nectar card number when you apply, and use this card with each Sainsbury's purchase. Double points begin on your policy's cover start date. If you don't tell us your Nectar card number until after your cover start date, double points will begin on the date you tell us. Double points stop when the policy is cancelled or you stop paying premiums. Each Nectar account can only collect points from one home or car insurance policy. It’s only the base points you collect at Sainsbury’s that are doubled. Bonus points won’t be doubled, nor will any points from Argos, Habitat, Sainsbury’s Bank (including travel money purchases), Sainsbury’s Energy or any other Sainsbury’s service. By the 10th of each month, you'll get a bonus point award equal to the total of your qualifying points during the previous month, up to a maximum of 20,000 points. Sainsbury's Supermarkets Ltd award the points from this offer. No cash alternative is available. We reserve the right to change or cancel this offer without notice.
(7) According to Sainsbury’s Bank own data analysis taken October 2019 and example based on Sainsbury’s shoppers who are Nectar members who typically spend £100 in store or online a week, and a further £50 on fuel each month, could earn as much as £57.20 worth of Nectar points a year if they have Sainsbury’s car or home insurance and £85 if they have both policies with the supermarket bank.
(8) Repairs carried out by the insurer’s nominated repairer are guaranteed for five years
(9) Nectar is a loyalty scheme in which members can collect and spend Nectar points with 500+ brands including Sainsbury's Bank.
About Sainsbury’s Bank:

To view our latest press releases and product information, please visit the Sainsbury’s Bank online media centre at https://www.about.sainsburys.co.uk/news

Sainsbury's was the first major supermarket to open a bank in the UK in February 1997. Our range of financial products includes, credit cards, savings and loans, as well as travel money, and car, home, pet, travel and life insurance which we provide online and by telephone. We offer Sainsbury’s shoppers great deals and rewards for choosing to shop and bank with us.

We have travel money bureaux at various Sainsbury's supermarkets across the UK and a large ATM estate.

Sainsbury's Bank plc. Registered Office, 33 Holborn, London EC1N 2HT (registered in England and Wales, no 3279730) is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority (register no. 184514). Sainsbury's Bank plc is covered by the Financial Services Compensation Scheme (FSCS).