51 year old Tony Costello was completely taken aback by his motor car insurance premium, as it rocketed from £630 to £861 after he informed Tesco, his insurers, that he had been made redundant. The insurer informed him that since he was now looking for work, he would be clocking up more miles on the road, which prompted the insurer to increase his premiums.
A former electronics manager, Mr Costello was earning £40,000 a year until last month, when his company switched to Poland for its production needs. He rang up Tesco to inform them of the change, only to be hit with a massive hike in the cost to cover his nearly ten year old Volvo.
Mr Costello reports that Tesco told him that since people who are looking for jobs drive around in order to attend interviews, he had to pay an increased premium, even though his policy’s annual mileage is capped at 12,000 miles. The former electronics manager was incensed that those who have been made redundant need to pay extra just in order to keep their cars on the road.
Mr Costello has been a loyal Tesco customer for around a decade, uses them to do all his shopping, and all his insurance is with them. A motorist for nearly a quarter of a century, the 51 year old has a full no claims bonus and by all accounts is far from a liability, he added.
Tesco would refund the premium increase if he found a new role, Mr Costello was told. However, for each change, the insurer would charge an administrative fee of £15.