Defaqto rating: 5/5 stars
Independent financial products reviewer Defaqto has given Tesco Bank Car Insurance a five-star rating.
Note: Not all Defaqto five-star rated products have the same covers and terms.
Tesco car insurance is sold by Tesco Bank, which is owned by the supermarket chain Tesco.
Tesco Bank was launched by the supermarket in July 1997.
Tesco Bank was a joint venture between the Royal Bank of Scotland (RBS) and Tesco
Tesco later bought out RBS and got its own banking licence
Tesco Bank offers a range of insurance, credit cards, loans, savings, and travel products
set up in 1997
more than 5 million customers
products also include pet insurance, savings accounts and travel service
customer service centres in Glasgow, Edinburgh and Newcastle
open seven days a week.
Contact Uswitch: 0800 688 8557
Tesco Bank is not an insurance company. It is an intermediary that works with specialist insurance companies and badges those as its own products. Tesco Bank is regulated by the Financial Conduct Authority and is authorised to sell insurance.
Tesco Bank Car Insurance is arranged and administered by Tesco Bank and is underwritten by a select range of insurers including:
Tesco Underwriting Ltd
AXA UK plc
Aviva Insurance Ltd
Sabre Insurance Company Ltd
Zenith Insurance plc
Tesco Bank Box Insurance is arranged and administered by Insure The Box Limited
Tesco Clubcard customers get a discount if they quote their Clubcard number when applying for Tesco Car Insurance.
New customers also get a 20% discount when they buy Tesco Car Insurance online.
Although this does not apply to breakdown cover, courtesy cover, driver injury cover and key cover.
Tesco Bank provides two types of cover:
Standard Car Insurance for drivers aged 21 and over
Box Insurance - telematics 'black box' insurance for drivers age 17-21
These are available with the following cover levels
Third party fire and theft
Tesco doesn’t offer multi car insurance.
If you have multiple cars to insure in your household taking out a multi-car insurance policy can help reduce your insurance costs:
if you own more than one car
if you’re a family with more than one driver
if you’re a couple with more than one vehicle
Tesco Bank does not offer short-term car insurance.
Short term insurance cover includes:
cover from 1 to 28 days without putting the no-claims bonus at risk.
lending a car to a friend, colleague or relative.
borrowing a car from a friend, colleague or relative
drive-away insurance if you've just bought a car
unaccompanied vehicle demonstrations or use of courtesy cars
Compare a range of short-term insurance policies with Uswitch and money.co.uk*
Tesco Standard Car Insurance is for drivers aged 21 and over.
Its fully comprehensive cover includes the following items as standard.
If your car is hit by an uninsured driver, you won't be penalised. As soon as Tesco Bank can validate the details of the incident – this includes the other vehicle's make, model and registration number - your no claims discount will be reinstated, and your excess will be refunded to you.
You’ll get a small courtesy car to help you keep going while yours is being repaired following a claim. There are a few exclusions, so you need to check first.
Tesco Bank will pay for loss or damage to the car caused by fire, theft or attempted theft.
This includes the cost of repairing or replacing your broken or chipped windscreen or windows. Tesco Bank Car Insurance will pay for any scratches to paintwork caused by broken glass from the windscreen or windows.
Cover will replace any child seats that are fitted to the car at the time of an incident, even if there is no obvious damage, £300 limit applies.
This includes any stereo, sat nav, telephone and entertainment equipment, permanently fitted to your car.
You can drive in the EU without paying extra. Your cover is extended to any EU country for a total of 90 days within the period of your insurance as long as you are a UK resident.
Tesco Bank car insurance has a UK-based accident helpline which is open 24 hours a day, seven days a week.
Personal possessions are covered up to the value of £200 if they're lost or damaged in the car following an accident.
If you or your passengers are involved in an accident in the car, Tesco car insurance will pay up to £100 in medical expenses to treat each injured person.
This provides up to £5,000 compensation for serious injury to you or your partner whilst travelling by car.
You can claim up to £150 towards any costs you might have incurred getting to your planned destination (or home) if you're involved in an incident that results in a claim that’s paid out.
Comprehensive cover with Tesco Bank Car Insurance includes up to £100,000 motor legal protection as standard. This provides you with cover for legal costs and expenses if you ever need to claim compensation for personal injury against the person responsible for the accident, where you are more likely than not to have a successful outcome.
Tesco Box Insurance offers telematics 'black box' policies for drivers aged 17-35.
Tesco Car Insurance says it aims to reward safe driving by giving younger drivers monthly bonus miles.
the cost of renewing your Tesco car insurance may increase or decrease and will depend on a number of factors, one of them being poor driving
Tesco Bank’s Box insurance is administered by Insure the Box and underwritten by their specialist range of insurers
Box Insurance comprehensive cover includes:
a no claims discount for every year you don't make a claim
up to 100 Bonus Miles a month for safe driving
guaranteed discount if you are a Tesco Clubcard member
Tesco Bank's Box Insurance also lets young drivers:
choose miles - a 6,000, 8,000, or 10,000 mile policy depending how much driving they do.
buy more miles online or on the phone
check their driving online via their own online portal
earn up to 100 bonus miles every month
accident alert - the box can sense any strong impact on drivers' cars and contact the emergency services on their behalf if appropriate
theft tracking – Tesco car insurance can help assist the police in finding policyholders' cars if they are stolen
For an extra premium the cover listed below can be added.
Breakdown Cover provided by RAC can be added to a Tesco Bank Car Insurance policy. There are four levels of cover.
If you include this cover, you will get a courtesy car that’s similar in size to your usual one. It’ll be yours for up to 28 days when your car is out of action, even if it’s deemed unrepairable by the approved repair network.
Regardless of whether you are at fault if you or any named driver, are hurt in an accident you get a lump sum payment, up to a maximum specified limit, to help support rehabilitation or expense in the event of a serious injury.
Tesco Clubcard customers who can save money on their car insurance
younger drivers who are wanting to improve their driving
drivers who want no-frills comprehensive car insurance
drivers who want the option to add on extras
drivers who are slowly increasing their yearly mileage
Tesco Bank’s strength improves as it braces for ‘bad debt’ rise
Tesco UK sales surged 8% to just over £9.9bn to during the three months ending 31 May.
The supermarket was able to double its online capacity during the early weeks of the Coronavirus crisis.
This meant online sales were up 48.5% during the three months ending 30 May 2020.
The increase in capacity meant Tesco’s online sales grew by almost 100% by the end of May
Digital sales now account for over 16% of UK sales, they were 9% before lockdown.
Tesco Bank is bracing itself for an increase in bad debt, as sales during those three months were down 26.5%, with travel money being particularly affected
Over the 12 months ending 30 May Tesco Bank’s financial strength, a measure known as CET1 improved by 5.5% to 21.8.
Tesco car insurance is provided by Tesco Underwriting, a joint venture with Ageas. Tesco had a total of 74 complaints, which is 1.5% of complaints but it has about 2% of the car insurance market, so received a smaller proportion of complaints than might be expected for its size. To put complaints in context, 67 firms had 10 or more complaints each and those totalled 4,550 complaints. Nearly 200 firms had fewer than 10 each, sharing just 479 complaints between them.