Not upheld: claim settlement dispute - adequacy of cash settlement and causation of damage complaint against Advantage Insurance Company Limited
Financial Ombudsman decision DRN-6118600 of 2026-04-29T00:00:00+00:00. claim settlement dispute - adequacy of cash settlement and causation of damage complaint against Advantage Insurance Company Limited. Outcome: Not upheld.
Decision detail
| Reference | DRN-6118600 |
|---|---|
| Decision date | 2026-04-29T00:00:00+00:00 |
| Firm | Advantage Insurance Company Limited |
| Product | car insurance |
| Claim type | claim settlement dispute - adequacy of cash settlement and causation of damage |
| Outcome | Not upheld |
| Remedy | Advantage Insurance Company Limited must pay Mr M £150 compensation for distress and inconvenience caused by delays in providing settlement breakdown and handling the complaint, within 28 days of acceptance of the decision, plus interest at 8% per annum if paid later. |
Summary
Mr M claimed his car's 'AdBlue' system was damaged in a rear collision and sought full repair costs, but Advantage settled by cash settlement excluding the 'AdBlue' repairs. Advantage's in-house engineer concluded the minor collision could not have caused the 'AdBlue' damage, particularly given previous poor repairs and existing fault codes in that area. Mr M disputed the adequacy of the settlement and claimed he never received a breakdown. The ombudsman found Advantage's approach reasonable, noting the prior structural weakness and lack of persuasive evidence linking the 'AdBlue' damage to the incident, and confirmed Advantage had provided a settlement breakdown. The complaint was not upheld, though Advantage was required to pay £150 compensation for delays.
The Ombudsman's reasoning
The ombudsman found that Advantage's decision to settle by cash settlement rather than repair was reasonable given the prior structural weakness and poor repairs to the same area. The in-house engineer's assessment that the minor collision could not have caused the 'AdBlue' damage was persuasive. The ombudsman considered Advantage's offer for Mr M to obtain an independent engineer report to evidence incident-related damage to be a fair resolution. The ombudsman was satisfied that Advantage provided a breakdown of the cash settlement despite Mr M's claim otherwise.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Advantage Insurance Company Limited, all decisions | 1,748 | 40% |
Source
Read the original decision on the Financial Ombudsman Service website