Sainsbury's Car Insurance rivals Tesco as supermarkets go to war

The war between the major supermarkets for their share in the financial services market enters a new phase today with the launch of Sainsbury's Car Insurance.

Many of the nation's media outlets are touting the new product as a challenge to Tesco's own - so how do the two stack up?

Sainsbury's Car Insurance is underwritten by Churchill, which in turn is part of the RBS group - still largely backed by the government (and therefore the public).

Tesco advertises its policies as being "underwritten by a select range of insurers" - including UKI, Tesco Bank, Sabre and Provident - while breakdown cover is available from RAC Motoring Services.

Clubcard customers can expect an exclusive discount, while arranging a policy online unlocks a further ten per cent discount for all customers.

Sainsbury's, meanwhile, offers up to a 15 per cent discount, based on circumstances, with two years of double Nectar card points on fuel and shopping.

Either product is available in two forms; Sainsbury's offers standard and premium cover, while Tesco's standard car insurance policy is accompanied by a value alternative.