Millions of Tesco shoppers may be sitting on an unexpected way to cut holiday costs.
The supermarket has introduced a new £1 Clubcard rule that allows customers to turn every £1 in vouchers into £1 off Tesco Travel Insurance — potentially reducing the upfront cost of cover ahead of the busy 2026 holiday season.
With travel bookings already surging, the move could come at exactly the right time.
What the new £1 Tesco Clubcard rule means
For the first time, Clubcard members can exchange vouchers at a simple 1:1 rate to pay for or part-pay for travel insurance policies.
That means:
- £5 in vouchers = £5 off your policy
- £20 in vouchers = £20 off your policy
- No complicated boost rates — just full face value
A minimum of £5 in vouchers must be exchanged, and customers receive a Reward Partner code to apply at checkout.
The offer can be used on:
- Single Trip travel insurance
- Annual Multi-Trip policies
- Backpacker cover
If you have enough vouchers saved, you could even cover the full cost.
Why Tesco launched the rule now
The change follows new research from Tesco Insurance showing:
- 70% of Brits have already booked a holiday for 2026 or beyond
- 38% have booked two or more trips
- 24% plan to book two holidays this year
- 28% expect to book three or more
- With many households planning multiple trips, travel insurance costs can quickly add up — especially for families or frequent travellers.
- By allowing Clubcard vouchers to be used directly against policies, Tesco is giving customers another way to stretch loyalty points further.
Ban Mahsoub, Partnerships Director at Tesco Insurance and Money Services, described the move as a “milestone” in delivering better value to Clubcard members, adding: "This initiative is a first for Tesco Insurance and Money Services, and represents a milestone in how we deliver value for our Clubcard customers."
Why travel insurance shouldn’t be left until the last minute
Alex Cross, Chief Customer Officer at Tesco Insurance, urged holidaymakers to book cover early — particularly those planning multiple 2026 trips.
"Whether you’re finally planning that bucket list trip, arranging a revisit of your favourite cities, or looking forward to a relaxing beach holiday, it’s easy for travel insurance to fly under the radar as you focus on organising the sites and bites of your upcoming trip," says Alex.
"Booking your travel insurance well in advance means you can get a vital task ticked off your list, and if you’re planning multiple trips in 2026, then getting an annual multi-trip policy in place can save you money in the long run.”
With travel demand already high, locking in insurance sooner rather than later could also help avoid price rises closer to peak season.
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How to use Clubcard vouchers for travel insurance
To redeem the offer, shoppers must:
- Get a quote via the Tesco Insurance website
- Exchange at least £5 in Clubcard vouchers
- Receive a Reward Partner code
- Apply the code at checkout
- The scheme is only available online.
With more than 24 million UK households signed up to Clubcard, millions could now have an easy way to turn loyalty points into real savings.
For anyone planning a 2026 getaway, it may be worth checking your voucher balance - those forgotten Clubcard points could now help pay for peace of mind.
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