Tesco claims Clubcard vouchers can be used to "pay" premiums, but this is a bit of a misnomer. Premiums must be paid in full with cash but Clubcard points can be applied to the balance to be refunded after payment. For example, if you have a £200 premium you can send in £200 and 5,000 points. Once this payment has been received you will receive a £50 credit. Tesco also discounts policies based on total premium cost up to 15% for card holders. For some drivers these discounts make the insurance far cheaper than other options.
Tesco Car Insurance Coverage
Basic liability and van coverage are similar to what you'll find with other companies. They also have an Internet-only "value" comprehensive insurance that lowers premium costs by raising excess payments. Extras like a courtesy car can be added to any of these plans at an extra cost, letting buyers pick which features they think they'll need. Additional discounts can be had by covering specific drivers instead of anyone who might drive the car.
Like Tesco Bank, Tesco insurance began as part of a partnership with the Royal Bank of Scotland. Currently, policies are underwritten by UK Insurance Limited, a subsidiary of RBS. Overall policy owners report more problems with Tesco-branded coverage than RBS's own offerings. Call centres are based in Britain, but claim processing can be hit or miss. However, this may soon change.
In September of 2009 Tesco announced that they were partnering with Fortis Insurance International. This new endeavour will be done under a new corporation called Tesco Insurance Limited. Tesco will handle all of the sales, service, and advertising of the insurance while Fortis will handle underwriting. The switch between RBS and the new system will happen sometime later this year. Find out what Tesco car insurance can do to save you money.
