Following Tesco’s foray into the world of motor insurance (and subsequently into the market of used cars), it was considered likely that another high street supermarket chain would soon step up in a bid to dominate the retail giant in the areas of insurance and breakdown cover UK wide. 

As it turns out, that firm is going to be Sainsbury’s, who are in the process of relaunching their motor insurance arm alongside the Royal Bank of Scotland insurance firm are promising that they will offer around 15% in premiums to their customers in the form of Nectar Loyalty Card points.

It has also been announced that there will be the option for shoppers to earn loyalty points which will equate to around 1% of their bills over the a two year period as part of Sainsbury’s gratitude to their customers.

These announcements will doubtless come as great news to UK motorists who are still trying to save money despite the massive increases in insurance policy that are taking place across the UK at the moment – around a 30% increase across the UK in the past year.

With Tesco currently estimated to account for 5% or so of the UK motor insurance market, it will be intriguing to see if Sainsbury’s can make inroads into their competitors’ share over the next year or so.

For more of the latest news from the world of UK motoring and to find out how cheap breakdown cover can be, visit the Rescue My Car home page now.