Coles Car Insurance

Coles expands product offering to car insurance

RateCity investigates a new player in the car insurance market, bringing clever marketing to win market share. We show you how Coles compares.

July 4, 2010

When shopping around for car insurance the choice is vast, however as a customer more competition means competitive prices, so you are bound to find a premium to suit your budget and you may find some extra goodies thrown in as well.

Take Coles for instance. On July 27, Coles Supermarkets expanded their range of supermarket items to include car insurance nationwide. After testing the waters in Tasmania last year, Coles now offers third party property damage, third party fire and theft and comprehensive car insurance both online and through a dedicated call centre.

The new offering from the supermarket giant is underwritten by Wesfarmers General Insurance, which is also the underwriters for the new Kmart Car Insurance, which launched in March this year.

How does Coles compare?
Coles Chief Financial Officer Tony Buffin says the company aimed to create a “…unique and compelling car insurance product for Australians.” And with extra rewards such as triple the existing 4 cents per litre off fuel voucher once per month for a year, Flybuys points for the policy purchase, a 5 percent discount for purchasing it online in the first year and your groceries are covered if they are damaged in a collision – it’s certainly a unique offering that other car insurers can’t match. But how does it compare?

RateCity compared Coles comprehensive car insurance against 26 other car insurance companies using the same driver profile for an address in Doncaster, Melbourne, and an address in Marrickville, Sydney. The results showed that Coles was below the average cost by $72 at $1143, and in Melbourne Coles was the lowest quote overall at $533, followed by Bingle at $556.60.

However while the prices are competitive, you will have to pay extra if you want to include car hire option and one excess free windscreen claim, both of which will set you back an extra $64 each, although several other companies also charge for these extras.

New players in the market more reason to shop around
As competition increases, there is now more reason to shop around and compare car insurance quotes.

RateCity’s CEO, Damian Smith says, “As more car insurance providers enter the market and challenge the major players by offering better priced deals and allowing drivers to compare them on financial comparison sites like ours, prices are likely to come down and the difference between prices will be smaller.”

Start comparing car insurance online so you can get more value for money and save a small fortune. 



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Learn more about car insurance

Can you insure your car for 6 months?

Most Australian insurers won’t offer you a 6-month car insurance policy, so you may need to buy a policy that covers your car for damages and cancel it after six months. You will need to purchase comprehensive car insurance to protect your car from accidental damage, theft, vandalism, or natural disasters.. 

Consider checking whether your 6-month comprehensive car insurance will cost more if you pay monthly or six-monthly premiums instead of a one-time annual premium. Another question to ask the insurer is whether you’ll need to pay administration or cancellation fees when you cancel the policy.

Alternatively, you can look for a suitable ‘pay as you drive’ car insurance policy, which usually offers you the coverage of a comprehensive car insurance policy but only requires you to pay for the distance driven. Such a policy may not be the ideal 6-month car insurance plan as it is based on how much you drive rather than for how long. If you need to drive a lot, you may end up paying more than you’d pay for regular car insurance. 

Does insurance cover a stolen car if keys were in the car?

A car insurance policy that covers the theft of your car, such as third party fire and theft insurance, usually covers a stolen car, even if the keys were in the car’s ignition.

However, your insurer may deny the claim if you live in an area where there have been several car robberies reported recently. They will see you leaving the keys in the car as a case of negligence. In such cases, your insurance provider may even expect you to have installed anti-theft security measures in your car. 

You may need to confirm whether or not you left your keys in your car, and if they had been stolen or misplaced, before filing your car insurance claim. The loss or theft of your car keys may be covered by a comprehensive car insurance policy, but usually as an optional item.

If you can confirm that your car keys were stolen, mention this in your claim as this will help establish that your car was not stolen as a result of your negligence.