Not upheld: Motor insurance, claim handling complaint against U Drive Cover Limited

Decision detail

Summary

Mr D complained about U Drive Cover Ltd's service regarding his motor insurance policies purchased in 2016 and 2017. Key issues included delays in confirming his no claims discount following a claim, inability to contact U Drive on a weekend to add a new car to his policy, and being told he owed £818 upon cancellation. U Drive negotiated with the insurer to reduce this to £329. The ombudsman found that U Drive, as a broker, was not responsible for insurer decisions on claims, NCD, premiums, or cancellation terms, and that the firm dealt with Mr D fairly and reasonably. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman distinguished between U Drive's responsibilities as a broker and those of the insurers. Claims processing, NCD decisions, premium adjustments for mid-term changes, and cancellation charge policies were all determined by the insurers (S and X), not U Drive. U Drive was acting as the insurer's agent in many instances and therefore not responsible for those decisions. The ombudsman found that U Drive's limited opening hours were a commercial decision and the information was publicly available. The ombudsman concluded that the outstanding amounts after negotiation represented services already provided (insurer cover and credit interest) rather than charges for services no longer being received.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website