Tesco vs AA
Comprehensive comparison of Tesco and AA car insurance. Our expert analysis examines pricing, coverage, customer service, and claims handling to help you choose the right provider for your needs.
Key Comparison Insights
Overall Recommendation
Tesco wins on price and digital experience. Choose AA if you value brand legacy and want integrated roadside assistance without shopping around.
Pricing Analysis
Tesco typically undercuts AA by 5–15% in most postcode areas. AA's branding adds to cost, but it also provides perks like bundled breakdown cover that...
UK Market Context
UK average car insurance premium is £694(Association of British Insurers). See how Tesco and AAcompare to this benchmark in our detailed analysis below.
Company Information Comparison
| Feature | Tesco | AA |
|---|---|---|
| Established | 2006 | 1905 |
| Underwriter | RIAS Insurance Services Limited | AA Underwriting Insurance Company Limited |
| Market Position | Mid-range | Premium |
| Customer Service Hours | Mon–Fri: 9am–5pm | Mon–Fri: 8am–8pm, Sat: 9am–5pm, Sun: 10am–4pm |
| Claims Satisfaction | 3.8 | 4.2 |
| Financial Strength | A | A+ |
| Mobile App Rating | 3.6 | 4.3 |
Policy Features Comparison
| Feature | Tesco | AA |
|---|---|---|
No Claims Discount Years protected | Up to 3 years | Up to 5 years |
Telematics Option | ||
| Multi-Car Discount | ||
New for Old Replacement Vehicle age limit | Up to 1 year | Up to 2 years |
Uninsured Driver Promise | ||
| Paperless Discount |
Starting Premium
£280.00
Tesco
£285.00
AA
Maximum Cover
£5,000,000
Tesco
£5,000,000
AA
Total Policies
3
Tesco
3
AA
Comprehensive Cover
Full Coverage
Tesco
Full Coverage
AA
Premium Analysis
Features Comparison
Policy Type Distribution
Tesco
Comprehensive
1
Third Party Fire & Theft
1
AA
Comprehensive
1
Third Party Fire & Theft
1
In-Depth Comparison Analysis
Expert Comparison Analysis: Tesco vs AA
Our comprehensive analysis compares Tesco and AAacross multiple dimensions including pricing, coverage options, customer service quality, and claims handling. This detailed comparison is based on real policy data, customer feedback, and market research to help you make an informed decision about your car insurance.
Overall Verdict
Tesco wins on price and digital experience. Choose AA if you value brand legacy and want integrated roadside assistance without shopping around.
Detailed Head-to-Head Analysis
Pricing & Value Analysis
Tesco typically undercuts AA by 5–15% in most postcode areas. AA's branding adds to cost, but it also provides perks like bundled breakdown cover that justify the higher premium for many.
Tesco
Average: £373.33
AA
Average: £383.33
Coverage & Benefits Comparison
AA includes UK-wide breakdown assistance in many of its policies, whereas Tesco requires this as an add-on. Tesco provides competitive cover but is less generous with extras in the base plan.
Customer Service Comparison
Tesco has faster onboarding and clearer digital interfaces. AA's call centres are well-staffed but more traditional. Younger drivers may find Tesco more intuitive.
Claims Process Analysis
Both insurers have strong claims reputations. AA often resolves claims in fewer steps but Tesco's claims app and digital forms make initial filing quicker.
Key Differentiators
Tesco is cost-effective and digital-first
AA includes more standard services like breakdown
Tesco is easier for tech-savvy users to navigate
AA's heritage and roadside support offer reassurance
Tesco appeals to families using Clubcard Points
Which Should You Choose? Real-World Scenarios
New Driver (Age 18-25)
First-time driver looking for affordable coverage with good support
Based on pricing for young drivers, available discounts, and customer support quality
Family with Multiple Cars
Two adults with 2-3 vehicles needing comprehensive coverage
Considering multi-car discounts, family-friendly features, and overall value
Senior Driver (65+)
Experienced driver seeking reliable coverage with excellent customer service
Based on senior-specific benefits, claims handling, and service quality
Business Vehicle
Commercial use requiring business insurance coverage
Evaluating business coverage options, commercial claims handling, and fleet discounts
UK Car Insurance Market Context
Understanding how Tesco and AA fit within the broader UK car insurance market helps contextualize this comparison. The following statistics provide insight into current market conditions.
Average Claim Settlement Time
15 days
Source: Financial Conduct Authority
Young Driver Premium Increase
+127%
Source: Confused.com Price Index
Percentage of Drivers Switching Insurers in 2024
39%
Source: GoCompare Switching Trends Survey
UK Car Insurance Market Size
31 million policies
Source: Statista UK Insurance Report
Average UK Car Insurance Premium 2024
£694
Source: Association of British Insurers
Average Cost of Car Insurance Fraud Per Case
£1,150
Source: Insurance Fraud Bureau, 2024
Customer Satisfaction Average
72%
Source: Consumer Intelligence
Black Box Policy Uptake Among Drivers Under 25
51%
Source: Compare the Market, 2024 Telematics Report
Detailed Real-World Analysis
A 28-year-old driver in Bristol could pay £345 with Tesco versus £410 with AA for similar cover (breakdown optional). Families may prefer Tesco's Clubcard rewards integration.
Our Final Recommendation
After analyzing pricing, coverage, customer service, and claims handling, here's our recommendation for different customer profiles:
Choose Tesco if:
- You prioritize comprehensive service and support
- You value additional benefits and coverage options
- You don't mind paying extra for premium service
Choose AA if:
- You're focused on getting the best value for money
- You're comfortable with essential coverage levels
- You prefer straightforward, no-frills insurance
Important: The best choice depends on your individual circumstances, driving history, vehicle type, and personal preferences. We recommend getting quotes from both providers to compare actual prices for your specific situation.
Comparison Methodology
This comparison is based on comprehensive analysis of policy documents, customer reviews, claims data, pricing information, and independent research. We maintain editorial independence and regularly update our analysis to reflect market changes. Last updated: 8/1/2025
Making Your Decision
When comparing Tesco and AA, consider how each provider's strengths align with your specific vehicle and driving needs. Tesco's average premium of £373.33compared to AA's £383.33 should be weighed against the coverage and benefits each provider offers.
Key Differences:
- Premium range and pricing structure
- Coverage limits and exclusions
- Available policy types
- Claims process and service features
Next Steps:
- Review detailed policy documents
- Check for vehicle-specific coverage
- Consider your no claims bonus
- Compare excess options and limits
Remember that the best choice depends on your individual circumstances, including your vehicle's age, make, model, your driving history, and your budget. Consider getting quotes from both providers to make a fully informed decision.