Tesco launches on-shelf breakdown cover

Tesco is rolling out an off-the-shelf instant breakdown insurance service in its stores next month.

The move follows its successful launch of Tesco Instant Travel Insurance in May 2002, since then 110,000 travel policies have been sold. Like the travel insurance, on-shelf breakdown cover packs can be taken to the checkout. The packs are available only to Clubcard holders, and the information from the loyalty card means no forms need to be signed.

The product will be jointly branded by Tesco and Green Flag – which is owned by Royal Bank of Scotland, the joint-venture partner for Tesco Personal Finance.

Tesco Instant Breakdown Insurance will be launched in 350 stores in mid-November. The launch will be accompanied by an outdoor poster campaign using sites close to stores, trolley cards and posters at Tesco filling stations. There will also be demonstrators in breakdown-branded boiler suites, handing out branded air-freshener and marketing material promoting the new product.

Royal Bank of Scotland last month decided to make Green Flag its principal retail breakdown brand, scaling back Direct Line’s breakdown product, which will continue to be marketed only as part of a range of Direct Line products rather than on its own. Green Flag had previously been marketed mainly to business-to-business customers.

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