“The supermarkets of yesteryear have well and truly gone, where you went to buy food in one supermarket and other goods in other types of stores. It seems that certain types of supermarkets are designed to be one stop shops from everything.
The largest retailers in the UK have also added their name to financial products, such as loans, travel insurance, car insurance and of course breakdown cover options. As a consumer it is very hard to distinguish the benefits of buying a breakdown cover policy from a supermarket rather than online direct from the supplier, with the exception that you often get store points on your store card by doing so and if in a hurry, the convenience of doing it there and then.
We have struggled to see who the AA is associated with, but it is very clear that the RAC have a deal with Asda and Green Flag with Tesco and Sainsbury’s through Esure a sister insurance company.
As we keep saying, if their are any benefits to the consumer buying from a supermarket they are not transparent and you have to ask the question why a breakdown cover provider would risk their own business, by allowing so called agents under cut themselves. The supermarkets obviously gain a commission for every policy that is sold, and with a huge amount of regular customers going through their store every week, it makes sense for the car breakdown cover providers to have access to this customer base without the marketing.”