Coles to offer car insurance - that covers your groceries

Coles said yesterday that as well as providing the basic insurance package, Coles Car Insurance would let customers triple their standard 4? Coles fuel discount receipt once a month for a year.

In an extra novel move, customers who take out comprehensive cover via the supermarket will also have their groceries insured if they are damaged in a car accident.

Coles, which was bought by Wesfarmers for nearly $19 billion three years ago, unveiled its fourth quarter and full-year sales results on Monday, which showed positive momentum at the retailer.

Food and liquor sales were up 4.2 per cent to $5.87 billion in the fourth quarter. Full-year sales hit $23.6 billion, a gain of 5.6 per cent. On a like-for-like basis, sales were up 5 per cent.

The Coles insurance product will be available online and through a dedicated call centre.

Customers can generate Flybuys points on purchase, and will receive 5 per cent off the first year's premium if buying online.

Wesfarmers' insurance arm is the fifth-largest insurer in Australia and third-largest insurer in New Zealand. It owns one of the largest insurance broking networks in Australasia.