Retail giants Tesco has introduced the Tesco Value Car Insurance, a low-frills product that caters to the needs of cost-conscious motorists.
The Tesco Value Car Insurance internet-only offer is a comprehensive insurance policy that cuts down premium costs by raising excess payments.
The policy includes UK-based 24-hour accident helpline, one year guarantee for parts and repairs, third Party Cover when driving in Europe, discounts on servicing and repairs from Nationwide Autocentres and replacement Child car seat. For an additional fee, customers can opt for Motor legal protection, Breakdown Assistance from Green Flag, and no claims discount protection. Customers will also have the option of covering specific drivers of car instead of getting a blanket cover for a car, netting them extra savings.
Customers with Clubcard, Tesco’s reward card, will be eligible for discounts of up to 15% on total premium costs. Moreover, for every £2 paid in insurance premiums, one point is credited to the card. While Clubcards points cannot be used directly to pay premiums, they do entitle holders to refunds. For instance, if, in making a £100 premium payment, a customer sends in £100 and 5,000 points, her card will be credited with £50 once payment is received.
Tesco’s financial products were first offered under a partnership with the Royal Bank of Scotland. Currently, policies are underwritten by UK Insurance Limited, a RBS subsidiary. However, in 2009, Tesco announced its intention of partnering with Fortis Insurance International by forming a new corporation, Tesco Insurance Limited. The transition from RBS to Fortis is expected to take place later this year.
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