How to cancel Tesco car insurance

Leaving your car insurance doesn't have to cost the world, we walk you through exactly what you have to do.

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Esther Wolffowitz

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Perhaps you’ve decided your Tesco car insurance is costing you far too much and you want a new deal. Or maybe you’re moving to a new home and don’t need your car anymore.

Whether you’ve just started your Tesco deal or you’re months along the road, we give a step-by-step guide to getting out. We also explain how much it will cost and how you can potentially keep leaving fees down, so you can say a cheap farewell.

Cancellation within 14 days of cover
If you’re still in the midst of your cooling off period then good news, you should be able to get out for free and get a near full refund too. Here are all the steps you need to take.

  1. Contact. Call or write a letter via Freepost to Tesco’s customer service within 14 days of receiving your policy documents or entering your contract (whichever is later).
  2. Cancel. Say you want to cancel your car insurance policy immediately or in a few days’ time and Tesco will stop your deal.
  3. Return document. You then have to return your Certificate of Motor Insurance by post or email.
  4. Refund. You’ll then get your money back for the days you haven’t had cover, which should be most of what you paid given it’s still the cooling off period.
  5. Exception. If you’ve made a total loss claim, where your car is written off during your short time with Tesco, you won’t get any refund.
Cancellation after 14 days
Unfortunately, once the cooling off period is over, cancelling your Tesco deal comes with a leaving fee. Yet the process is pretty easy and you could get a lot of your money refunded too. Here’s what you have to do.

  1. Contact. Call or send a letter via Freepost to Tesco’s insurance customer service team.
  2. Cancel. Specify whether you want to quit immediately or at a later date.
  3. Return certificate. You will have to send back your Certificate of Motor Insurance by post or send an email surrendering it.
  4. Refund. If you haven’t made a claim then Tesco will refund you for the days you haven’t used on your policy.
  5. Cancellation fees. However, be warned, it will charge a fee for leaving your deal early.
  6. Exception. Should you have made any sort of claim during your time with Tesco you won’t get a penny refunded if you cancel early, while monthly payment customers will have to pay the full premium that’s due.

Things to consider before cancelling your policy with Tesco

  • Adjust deal instead. Rather than cancelling your deal with Tesco you could just change your policy. This might be the best option if the reason you’re looking to leave is because you want cheaper cover or a different level of cover. Tesco will probably charge you an administration fee and adjust your premium should you change your deal though.
  • Fees. If you’re outside of the cooling off period Tesco will charge you a cancellation fee. Ultimately it’s not very much but you could wait for your Tesco insurance to wind down if you don’t fancy paying it. Make sure you contact Tesco and tell it you don’t want it to automatically renew your current deal though!
  • Made a claim. If you’re in the cooling off period and you write off your car Tesco won’t give you any money back should you cancel. Likewise if you make any sort of claim after the first 14 days of cover, it won’t refund you whatsoever. Cancelling would leave you out of pocket should either case apply to you.
  • Best time to switch. You should sign up to a new deal around three weeks before your existing Tesco policy is due to expire. Car insurance companies hike prices for people who take insurance out in the final week. So it might even be worth renewing your current Tesco deal if it’s now in its final few days.
  • No claims. In all likelihood Tesco won’t let you walk away with your no claims discount intact should you cancel early. This could make your next insurance deal far more expensive.

Changing car insurance provider

  • Compare, compare, compare. Decide what level of cover you need then use comparison sites to find the best deal for you.
  • Go direct. Insurance companies don’t always list their offers on comparison sites, so it’s worth getting a few quotes directly through their websites or ringing them.
  • Switch to a new provider early. One option you can take is cancelling your Tesco deal early and taking out a new insurance policy. You’ll have to pay fees but you might decide the new deal’s savings are worth it.
  • Delay your switch. The other route you can take is to wait for your Tesco deal to run down. Sign up to a new insurance provider a few weeks before and ask it to delay starting its cover to the day your Tesco contract runs out. Then contact Tesco and tell it not to automatically renew your deal. If you don’t, you could end up paying for two insurance policies!

Frequently asked questions

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*Based on data provided by Consumer Intelligence Ltd, www.consumerintelligence.com (Mar ’24). 51% of car insurance customers could save £539.54
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Esther Wolffowitz was a publisher at finder.com specialising in insurance. Esther holds an MSc in Media and Communication Governance from the London School of Economics and Political Science (LSE). See full bio

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