Retail Giant Coles Steps Into Car Insurance Market

Milk, bread, cheese and car insurance: you can now get them all at Coles. The giant retailer has this week moved into the $16.2 billion Australian car insurance market.

Following a successful six-month trial in its Tasmanian stores, the Wesfarmers-owned Coles has announced the national launch of Coles Car Insurance.

Tony Buffin, Chief Financial Officer for Coles described the service as a flexible product, with options that offered a lifetime guarantee on car repairs.

"Coles Insurance customers can build a tailored insurance product - by selecting the cover options that matter to them," Mr Buffin said.

"With the backing of Wesfarmers Insurance, we think we've created a unique and compelling car insurance product for Australians."

Naturally, customers opting for comprehensive cover will be able to claim on their groceries if they are damaged in a crash.

Speaking with AAP, Wesfarmers Insurance Managing Director, Robert Scott, said that while the Coles Car Insurance product will not be marketed as the most affordable insurance in the market, it will be competitively priced and will offer "great value and quality."

"Our offer is aligned with what Coles' customers want, which is great value and quality products," Mr Scott told AAP.

Customers taking out car insurance with Coles will also be able to triple the value of the supermarket's existing fuel discount vouchers, once per month.

Coles' move into mass-market car insurance is expected to spark a rush from other retail giants, with Woolworths and Myer believed to be investigating similar moves. Currently, traditional players Suncorp and Insurance Australia Group are believed to share around 75 percent of the Australian car insurance market.

Keep an eye out for the inevitable 'You'll love Coles Car Insurance' slogan.