Upheld: Motor insurance, total loss valuation complaint against Trinity Lane Insurance Company Limited

Decision detail

Summary

Mr H claimed on his quad bike insurance after it was stolen in September 2024. Trinity Lane offered a settlement of £6149 based on a USA comparable advert, but Mr H disputed this, claiming the bike was worth £10,000 as a special edition. The ombudsman found that while Trinity correctly applied a market value policy approach and Mr H's £10,000 claim was unsupported, Trinity should have used the UK comparable advert at £6595 rather than the USA price, as UK valuations are more reliable. The complaint was upheld and the settlement was increased to £6595 with 8% simple interest on the difference.

The Ombudsman's reasoning

The ombudsman determined that while the valuation of used vehicles is not an exact science and Trinity's use of market value methodology was correct, Trinity's reliance on the USA valuation was less reliable than using the UK comparable. The ombudsman found that Trinity had two comparable adverts available (UK at £6595 and USA at £6149) and should have used the UK comparable as more reliable, since prices abroad are less reliable than UK valuations and Mr H could not have actually purchased the bike from the USA without export costs. The ombudsman rejected Mr H's claim of £10,000 as unsupported by reliable evidence, but upheld the complaint regarding the valuation methodology applied.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website