Tesco bridges insurance gap with new Value range of cover

From Wednesday 24 May comprehensive motor cover becomes more accessible for the millions of drivers who currently feel it is unaffordable with the launch of Tesco Value Car Insurance - fully comprehensive cover at 12 percent less than the company’s standard product.

Bridging the gap between third party and comprehensive cover Tesco Value Car Insurance is aimed at the 2.5 million drivers currently relying on third party insurance, those with low value or second cars and those who do minimal mileage.

The product is the result of months of investigation by Tesco, the country’s third largest car insurer, into what motorists would most like to see in a value range. The Value product therefore retains the peace of mind of comprehensive cover and amends the extras that motorists felt were of limited benefit. The result is a simplified product that will make comprehensive cover more affordable for a larger number of drivers.

Allan Burns of Tesco Car Insurance says: "Our new product will improve choice for motorists. It will help millions to gain the security of comprehensive cover and others to save money with cover that better suits their needs".

Research by Tesco Car Insurance asked 250 motorists currently with third party insurance why they opted for this level of cover. A quarter (25.7%) stated they simply could not afford the cost of comprehensive cover, while almost half (48.2%) felt that the value of their car did not justify the cost of the additional cover. The research also revealed that a worrying 10% of motorists were happy to take the chance that they would not have an accident and need to make a claim.

However, there is clearly a desire to have the security offered by comprehensive insurance, as 87% of respondents would buy this level cover if it was priced comparably with third party cover.

Burns continues: "This product is designed for a particular audience. We listened to these motorists who told us that they wanted low premiums combined with the basic security provided by comprehensive cover in the event of a major claim such as a write off, but are less worried about claiming for minor bumps and scrapes to their own vehicles."

Summary of Tesco Value Car Insurance cover levels:

Fully comprehensive cover
Motor Legal Protection
Parts and repairs guaranteed for one year
Recommended repairer only
Personal effects and accident cover
Windscreen and audio cover

Burns concludes: "We believe this unique product will be of benefit to a great number of motorists and is another example of Tesco lowering prices, increasing choice and making insurance simple".