Improved insurance for car finance customers

Tesco Personal Finance has announced a new insurance product that, it claims, will help car finance customers manage their money in the tough economic climate.

The Tesco Car Warranty plans offer breakdown cover starting from £9 per month. Car finance customers should take note that to qualify for this tariff the vehicle must be fewer than 10 years old and must have no more than 99,999 miles on the clock.

Head of insurance at Tesco Personal Finance, Alan Burns, explains: "Figures from the Society of Motor Manufacturers and Traders suggest the average age of the 24 million licensed cars on UK roads is 6.8 years and if, as our survey suggests, that is likely to increase, the number of repairs needed is also set to rise. Many motorists worry about the cost of repairs but up until now it has been quite difficult to buy a warranty once the manufacturer's has lapsed.

"The grim reality is, however, that the older a car becomes and the higher its mileage, the greater the chances of its going wrong and the more expensive it could be to repair. In addition, cars are becoming increasingly sophisticated, with even the most basic being fitted with technology that a few years ago was only found on executive vehicles.

"We believe in offering motorists the choice of protecting themselves even after the manufacturer's warranty has expired, helping them to guard against large repair bills and bring down the cost of motoring."