Upheld: Home insurance claim disputes complaint against Motors Insurance Company Limited
Financial Ombudsman decision DRN-6083958 of 2026-01-16T00:00:00+00:00. Home insurance claim disputes complaint against Motors Insurance Company Limited. Outcome: Upheld.
Decision detail
| Reference | DRN-6083958 |
|---|---|
| Decision date | 2026-01-16T00:00:00+00:00 |
| Firm | Motors Insurance Company Limited |
| Product | GAP / warranty insurance |
| Claim type | Home insurance claim disputes |
| Outcome | Upheld |
| Remedy | Motors to pay: (1) £1,612.46 for repair costs; (2) 8% simple interest on repair costs from date of claim decline to date of payment; (3) £200 compensation for distress and inconvenience. |
Summary
Mr A claimed on his motor warranty for a corroded coolant pipe that leaked in March 2025, shortly after renewing the policy in February 2025. Motors declined the claim citing wear and tear exclusion. The ombudsman upheld the complaint, finding that the garage evidence showed the pipe failed prematurely for its mileage and age, constituting sudden and unexpected failure under the policy definition rather than normal wear and tear. Motors was directed to pay the repair cost of £1,612.46 plus interest and £200 compensation for distress and inconvenience.
The Ombudsman's reasoning
The ombudsman distinguished between parts failing when worn out as expected versus failing sooner than expected. The garage evidence indicated the coolant pipe failed prematurely given the vehicle's mileage, age, and storage conditions. This constitutes sudden and unexpected failure under the policy definition, not excluded wear and tear. No maintenance issues were identified that would justify declining the claim.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Motors Insurance Company Limited, all decisions | 54 | 29% |
| Home insurance claim disputes, all decisions | 25,317 | 38% |
| GAP / warranty insurance, all decisions | 915 | 39% |
Source
Read the original decision on the Financial Ombudsman Service website