Need to know
- All of the major supermarkets offer car insurance, with Woolworths and Coles linking theirs to their loyalty programs
- Beware just focusing on price – it's vital to scrutinise a policy's details to ensure you get the coverage you need
- CHOICE's independent reviews compare more than 65 policies from various insurers to help you find the best one for your needs and budget
As well as absorbing a good chunk of your monthly budget on groceries, it seems the big supermarkets now want you to spend more money with them by buying their insurance products too.
While Coles and Woolworths have been offering insurance products for years, Aldi debuted its insurance offering in June last year, giving its customers the opportunity to pick up their home and contents insurance, landlord insurance and car insurance along with their weekly shop.
But is it a good idea to lump your car insurance in with your bread and milk, and are you really getting a good deal? There are certainly lots of incentives that the big supermarkets dangle in front of you to get your business.
Is it a good idea to lump your car insurance in with your bread and milk?
Coles and Woolies offer a range of insurance policies linked to their loyalty programs, Everyday Rewards and Flybuys, which give you bonus points when you sign up and ongoing discounts on your shopping that can increase according to how many policies you hold.
Of course, in order to take advantage of these discounts, you hand over a significant amount of personal data to the supermarkets, something CHOICE experts warn you should be wary of.
Aldi doesn't have a loyalty program and doesn't offer conditional discounts – their insurance products were launched promising "everyday competitive prices for Australian shoppers".
As many Australians continue to struggle with the increasing cost of living, a discount on groceries is undoubtedly a huge incentive. But are supermarket car insurance policies really good value?
Is car insurance from Coles, Woolies and Aldi any good?
CHOICE experts have compared more than 65 car insurance policies across the market to help you find the one that best suits your needs and budget.
Unlike other insurance comparison websites, we're completely independent and don't get paid by any of the insurers we're comparing. That means we're also willing to call out the policies that we don't recommend because they don't offer good value or have weird exclusions.
Of the three supermarket policies, Coles generally come out better than Aldi and Everyday Woolworths
Mark Blades, CHOICE insurance expert
CHOICE insurance expert, Mark Blades, has closely scrutinised each of the car insurance policies offered by Coles, Woolworths and Aldi.
"You get what you might expect with supermarket car insurance – homebrand products with homebrand quality," he says.
"These are all very standard policies that aren't the best or the worst in the extensive line-up of car insurance policies we've reviewed. They all have the cover you'd expect for things like theft, collision, hail, storm, flood and fire, with variations in some elements of the cover and definitions of what they will and won't cover.
"Of the three supermarket policies, Coles generally comes out better than Aldi and Everyday Woolworths in terms of the features and benefits paid."
Compare car insurance policies at CHOICE to ensure you're getting the best value for money.
The importance of comparing prices and policies
When comparing prices, it's worth noting that all three supermarkets have simply repackaged someone else's existing policy and slapped their logo on it. Often you'll find a very similar – if not identical policy – offered by another provider (backed by the same insurance underwriter).
For example, the Aldi policy is provided by RACQ (which also sells policies under its own name), the Coles policy is provided by Auto and General (which also sells policies under Budget Direct), and the Everyday Woolworths policy is provided by Hollard (which also sells policies under Real Insurance).
It's worth noting that all three supermarkets have simply repackaged someone else's existing policy and slapped their logo on it
"We often find that almost identical policies are offered by different insurers for completely different prices, so it's important to compare prices as well as the detail of the policy when you're doing your research – the CHOICE car insurance review can help you with this," says Mark.
"If you've been with the same insurer for years, it's also wise to look around to see if there are any sign-up promotions or other benefits you could be taking advantage of with a new insurer.
"Just ensure you're not losing out on coverage and look closely at the Product Disclosure Statement of the policy you're buying."
Aldi comprehensive car insurance
- CHOICE Expert Rating: 59%
- Cover score: 62%
- Provided by RACQ and administered by Honey Insurance
While this policy offers fairly standard cover, it has some advantages over the Coles and Everyday Woolworths policies in terms of the benefits offered and some terms and conditions.
Benefits of the policy include $1500 cover for personal items damaged in your car (with some exclusions such as theft, but it does include mobile phones and electronics), plus $1500 of coverage for emergency accommodation or transport after an incident.
This is more generous than the Coles policy ($1000) or Everyday Woolworths policy ($500) that both also have certain limits and conditions.
Honey Insurance also administers car insurance for Bank Australia and BOQ with very similar inclusions, so compare their prices before you buy.
Read the full Aldi car insurance policy review.
Coles Comprehensive Car Insurance
- Cover score: 66%
- Price data not available
- Provided by Auto & General
For both the Coles and Woolworths policies, the unique selling point isn't actually in the insurance product: it's in the fact that you get discounts on your shopping or additional points in exchange for handing over your personal data to their respective loyalty programs.
Remember there are many other policies that offer the same or better cover out there, so it's still important to shop around to make sure you're getting the best deal.
Auto & General also administer car insurance for ING, Virgin Money, Budget Direct and Qantas, so ensure you compare those policies during your research.
Read the Coles Comprehensive car insurance policy review.
CHOICE tip: You'll save money and get better cover with insurance policies recommended by CHOICE. Unlike other insurance comparison websites, we don't get paid by any of the insurers we're comparing. CHOICE is nonprofit, so your membership fees help us fight for fair consumer rights, and empower you to get the best products. Check out our car insurance reviews.
Everyday Comprehensive Car Insurance by Woolworths
- CHOICE Expert Rating: 58%
- Cover score: 56%
- Price score: 60%
- Provided by Hollard Insurance
Many Woolworths shoppers are enticed by the 10% monthly discount you get on groceries if you are part of the Everyday Rewards loyalty program and sign up to this policy. However, it's important to be aware that, discount or no discount, you're paying for below average cover.
"The Woolworths Everyday Comprehensive Car Insurance policy received a price score of 60% – the higher the score, the cheaper the policy usually is compared to other products. There are many policies in our review that outperform this policy on both cost and level of cover," says Mark.
With this policy, you are limited to the insurer's network of repairers (you can't use your own) and the cover is slightly worse than that offered by Coles and Aldi's policies.
Read the Woolworths Everyday car insurance policy review.
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Stock images: Getty, unless otherwise stated.
