Tesco and cars. They go together like, well....Tesco and cars. When the company started offering motor insurance, the brand was enough to persuade people to sign up.
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Dawn Hayes has had Tesco car insurance since 2004. Last year, they wrote to say the annual policy was being renewed. Two months later something else was due for renewal - Dawn's car tax. So she contacted the DVLA. Dawn told Watchdog:
"I did it through the automated telephone system, where they check, the system says checking to see if you have a valid MOT, a valid insurance certificate, and it came back and said 'there is no valid insurance on this vehicle.' It turns out I'd been driving for 5 weeks without any car insurance, breaking the law, and the consequences of that were just so serious."
And serious it is. If you don't have insurance, the police can issue you with a fixed penalty notice. It can mean 6 penalty points on your licence, a fine of up to £200, and your car could be impounded. So, why was Dawn put at such risk? Dawn told Watchdog:
"They just said I had passed to a different underwriter, Tesco had got a new underwriter, and that I had been passed over to them. But I have letter clearly saying in bold black ink 'your car insurance will automatically be renewed'. I thought I was insured. Tesco left me without any insurance. And they are responsible"
Dawn was lucky. She realised Tesco's mistake before getting in to trouble with the law. Barbara Willis, on the other hand, was less so. Tesco assured her they were renewing her policy in October 2010. Three months later the police stopped her. For driving without insurance. Dawn told Watchdog:
"I pulled in and the officer asked who I was insured with so I told him insured with Tesco and he said that it was showing on their database that I had no insurance, so I was absolutely mortified. He then basically tried to call up the insurance company but because it was a bank holiday he couldn't get through to them, so he said because he couldn't get through to them he couldn't confirm or deny, so he couldn't seize my car that day, however he gave me seven days to produce my documents to the police station."
Barbara called Tesco the following day. Their explanation? They'd cancelled the insurance because one of her payments had bounced. They said they'd investigate and call her back. In ten days time. Barbara says:
"With the ten day call back policy and the fact knowing I only had 6 days to get the documents to the police I was absolutely terrified. I just didn't know what to do, where to turn because every time I tried to call someone else I was hitting a brick wall, no one was dealing with it."
After repeated phone calls, Tesco finally admitted their mistake. All Barbara's payments were in order, and they should NOT have cancelled the policy. At least Barbara wasn't prosecuted because of Tesco's error. The company did write a letter for the police - just in time - so she was in the clear.
This was not the case for Harriett Stevenson, who along with her husband Ray, have insured their cars with Tesco for years.
Ray got a new car in May, and they called Tesco to change the details on his policy. They did the same when Harriet got a new car in July. A replacement insurance certificate arrived with Harriet's new registration number on the front page. So she thought all was fine....until the police pulled her over.
Harriett told Watchdog:
"The police officer behind put his lights on and called me over and came over to the window, and said that my car's not insured. So the police officer had to seize my car and take it away from me there and then, and that he issued me with a fixed penalty notice which would be 6 points and a £200 fine for not having insurance. Which I could then have 7 days to admit that it was my offence, or it was that I could dispute it in court."
How did this happen? Well, Tesco had blundered again. They'd put her new registration number on her husband's policy and hadn't changed her old policy at all. The result: both had been driving round uninsured. It took Tesco over a month to investigate and send a letter to Harriet admitting their error. Harriet told Watchdog:
"Its just so horrible to think I've never had any offences in a car, I've never had any points on my licence, I've never been in trouble with any sort of police or anything like that, but I've got to go to court to resolve this issue."
That court appearance came a few weeks ago. Facing a potential fine - as well as licence points - Harriett had to convince everyone the fault lay not with her, but with Tesco. The result? Harriet told Watchdog:
"We were waiting in there for two hours to actually to go and see someone regarding the case. And had to go straight in, in to the dock area, speak to the prosecutor who asked me a few questions about the case. Then they withdrew the case immediately.
Its been horrible since the moment I was pulled over, and you know, we had to put off holiday plans, we've had to go through Christmas thinking about it and everyone knowing and its just an awful thing to have to go through. It could have been a lot worse, but it's is just nice for it to be over."
Tesco's response to BBC Watchdog:
We apologise unreservedly to our three customers for the administrative errors made and for the distress and concern caused.
We were aware of all 3 cases and have already acted to put them right.
This is an issue seen across the insurance industry affecting a fraction of a percent of customers and can be caused by something as simple as a member of staff recording car details incorrectly.
At Tesco, we are working hard to reduce the number of cases by improving the way we deliver car insurance to our customers.
If Tesco customers have questions about their car insurance policies they can call us on 0845 673 9156.
Watchdog viewer responses:
I have been insured with tesco for 5 years, this year someone drove into me in the snow, I spoke to Tesco who said if they didnt hear from the guy within 3 months, then it means hes automatically accepting responsibility, coincidentally the guy responded 3 months and 2 weeks later disputing it was his fault, i still have a damaged car as Tesco have been very unhelpful, i am the one contacting them for updates!! tesco should definately stick to Selling Groceries!!
Miss Pepper
I had my renewal notice through from tesco's and searched online for a cheaper quote tesco's came up cheaper than the renewal so we took out a new policy with them. I then received notice they still took the payment for the renewal, when I called them they would not refund the full amount and I would have to cancel the policy from the date I called, I explained I was not happy paying insurance twice for the same car (both with tesco's). They said there is nothing they could do expect log a complaint and wait.
Also admitted they receive lots of calls like mine on automatic renewals.
It makes you wonder how many and who don't complain.
Nicki
My wife and I both have Tesco car insurance policies. However, when we moved address recently one policy incurred a charge of over £90 and the other was free.
We were told that despite the "seamless transition" to the new underwriters promised by Tesco, that we were now insured by someone else (in the case of the £90 charge on one policy.)
We are awaiting a proper response from Tesco after complaining. The transition to Tesco Bank from Tesco Car Insurnce has been very poorly managed and customers have been misled. They are not getting the same insurance that they agreed to in the first place. We will not be renewing our policies with Tesco again.
Rob and Sarah Stallard, Fareham, Hampshire
I have been a tesco insurance holder for the last four years. My insurance has always automatically renewed and tesco would send me a letter to this effect. Last year i was pulled over by the police for driving with no insurance. I was given six points on my licence and fined two hundred pounds. When i questioned tesco i was informed that there had been a system error and it had not renewed. I am now being punished for their mistake with higher premiums and points on my licence that i have never had before!
Laura, St. Albans
Tesco - should they stick to groceries?
In order to see this content you need to have both Javascript enabled and Flash installed. Visit BBC Webwise for full instructions. If you're reading via RSS, you'll need to visit the blog to access this content.
(Do you have something to say about this story? Tell us what you think by emailing us here. Don't forget to include 'Tesco' in the subject line. Watchdog will publish a selection of viewers' comments underneath each story, both throughout and after the programme is on air. Please remember to include your name as you would like to see it published).
Dawn Hayes has had Tesco car insurance since 2004. Last year, they wrote to say the annual policy was being renewed. Two months later something else was due for renewal - Dawn's car tax. So she contacted the DVLA. Dawn told Watchdog:
"I did it through the automated telephone system, where they check, the system says checking to see if you have a valid MOT, a valid insurance certificate, and it came back and said 'there is no valid insurance on this vehicle.' It turns out I'd been driving for 5 weeks without any car insurance, breaking the law, and the consequences of that were just so serious."
And serious it is. If you don't have insurance, the police can issue you with a fixed penalty notice. It can mean 6 penalty points on your licence, a fine of up to £200, and your car could be impounded. So, why was Dawn put at such risk? Dawn told Watchdog:
"They just said I had passed to a different underwriter, Tesco had got a new underwriter, and that I had been passed over to them. But I have letter clearly saying in bold black ink 'your car insurance will automatically be renewed'. I thought I was insured. Tesco left me without any insurance. And they are responsible"
Dawn was lucky. She realised Tesco's mistake before getting in to trouble with the law. Barbara Willis, on the other hand, was less so. Tesco assured her they were renewing her policy in October 2010. Three months later the police stopped her. For driving without insurance. Dawn told Watchdog:
"I pulled in and the officer asked who I was insured with so I told him insured with Tesco and he said that it was showing on their database that I had no insurance, so I was absolutely mortified. He then basically tried to call up the insurance company but because it was a bank holiday he couldn't get through to them, so he said because he couldn't get through to them he couldn't confirm or deny, so he couldn't seize my car that day, however he gave me seven days to produce my documents to the police station."
Barbara called Tesco the following day. Their explanation? They'd cancelled the insurance because one of her payments had bounced. They said they'd investigate and call her back. In ten days time. Barbara says:
"With the ten day call back policy and the fact knowing I only had 6 days to get the documents to the police I was absolutely terrified. I just didn't know what to do, where to turn because every time I tried to call someone else I was hitting a brick wall, no one was dealing with it."
After repeated phone calls, Tesco finally admitted their mistake. All Barbara's payments were in order, and they should NOT have cancelled the policy. At least Barbara wasn't prosecuted because of Tesco's error. The company did write a letter for the police - just in time - so she was in the clear.
This was not the case for Harriett Stevenson, who along with her husband Ray, have insured their cars with Tesco for years.
Ray got a new car in May, and they called Tesco to change the details on his policy. They did the same when Harriet got a new car in July. A replacement insurance certificate arrived with Harriet's new registration number on the front page. So she thought all was fine....until the police pulled her over.
Harriett told Watchdog:
"The police officer behind put his lights on and called me over and came over to the window, and said that my car's not insured. So the police officer had to seize my car and take it away from me there and then, and that he issued me with a fixed penalty notice which would be 6 points and a £200 fine for not having insurance. Which I could then have 7 days to admit that it was my offence, or it was that I could dispute it in court."
How did this happen? Well, Tesco had blundered again. They'd put her new registration number on her husband's policy and hadn't changed her old policy at all. The result: both had been driving round uninsured. It took Tesco over a month to investigate and send a letter to Harriet admitting their error. Harriet told Watchdog:
"Its just so horrible to think I've never had any offences in a car, I've never had any points on my licence, I've never been in trouble with any sort of police or anything like that, but I've got to go to court to resolve this issue."
That court appearance came a few weeks ago. Facing a potential fine - as well as licence points - Harriett had to convince everyone the fault lay not with her, but with Tesco. The result? Harriet told Watchdog:
"We were waiting in there for two hours to actually to go and see someone regarding the case. And had to go straight in, in to the dock area, speak to the prosecutor who asked me a few questions about the case. Then they withdrew the case immediately.
Its been horrible since the moment I was pulled over, and you know, we had to put off holiday plans, we've had to go through Christmas thinking about it and everyone knowing and its just an awful thing to have to go through. It could have been a lot worse, but it's is just nice for it to be over."
Tesco's response to BBC Watchdog:
We apologise unreservedly to our three customers for the administrative errors made and for the distress and concern caused.
We were aware of all 3 cases and have already acted to put them right.
This is an issue seen across the insurance industry affecting a fraction of a percent of customers and can be caused by something as simple as a member of staff recording car details incorrectly.
At Tesco, we are working hard to reduce the number of cases by improving the way we deliver car insurance to our customers.
If Tesco customers have questions about their car insurance policies they can call us on 0845 673 9156.
Watchdog viewer responses:
I have been insured with tesco for 5 years, this year someone drove into me in the snow, I spoke to Tesco who said if they didnt hear from the guy within 3 months, then it means hes automatically accepting responsibility, coincidentally the guy responded 3 months and 2 weeks later disputing it was his fault, i still have a damaged car as Tesco have been very unhelpful, i am the one contacting them for updates!! tesco should definately stick to Selling Groceries!!
Miss Pepper
I had my renewal notice through from tesco's and searched online for a cheaper quote tesco's came up cheaper than the renewal so we took out a new policy with them. I then received notice they still took the payment for the renewal, when I called them they would not refund the full amount and I would have to cancel the policy from the date I called, I explained I was not happy paying insurance twice for the same car (both with tesco's). They said there is nothing they could do expect log a complaint and wait.
Also admitted they receive lots of calls like mine on automatic renewals.
It makes you wonder how many and who don't complain.
Nicki
My wife and I both have Tesco car insurance policies. However, when we moved address recently one policy incurred a charge of over £90 and the other was free.
We were told that despite the "seamless transition" to the new underwriters promised by Tesco, that we were now insured by someone else (in the case of the £90 charge on one policy.)
We are awaiting a proper response from Tesco after complaining. The transition to Tesco Bank from Tesco Car Insurnce has been very poorly managed and customers have been misled. They are not getting the same insurance that they agreed to in the first place. We will not be renewing our policies with Tesco again.
Rob and Sarah Stallard, Fareham, Hampshire
I have been a tesco insurance holder for the last four years. My insurance has always automatically renewed and tesco would send me a letter to this effect. Last year i was pulled over by the police for driving with no insurance. I was given six points on my licence and fined two hundred pounds. When i questioned tesco i was informed that there had been a system error and it had not renewed. I am now being punished for their mistake with higher premiums and points on my licence that i have never had before!
Laura, St. Albans
Tesco - should they stick to groceries?