Not upheld: unfair premium increase at application stage complaint against Admiral Insurance (Gibraltar) Limited

Decision detail

Summary

Mr G complained that Admiral unfairly increased his motor insurance premium by approximately 30% (from £1,360 to £1,800) at application stage after he disclosed a motoring offence on the named driver's licence. Mr G argued the offence had expired and should not be considered. The ombudsman found that although the associated penalty points had expired, the motoring endorsement remained unspent and fell within the five-year disclosure period Admiral asked about. The ombudsman determined Admiral acted fairly by applying its underwriting rules and pricing algorithms consistently to all customers, and that Mr G retained the option to shop around for alternative quotes. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman determined that although penalty points had expired, the motoring endorsement remained unspent and fell within the five-year period Admiral asked about in its application question. Insurers have commercial discretion in assessing risk and weighting information, and Admiral's consistent application of its pricing algorithms to all customers in similar circumstances constitutes fair treatment. The ombudsman noted that customers retain the option to shop around for alternative quotes after receiving a revised premium.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website