Find out whether Tesco Bank can save you money on your car insurance
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.
Trustpilot rating: 1.4/5 stars
TrustPilot has given Tesco car insurance 1.4 out of five stars although TrustPilot says Tesco does not ask its customers to review it via TrustPilot.
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.
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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 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.
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