Not upheld: unfair application of policy excess to claim settlement complaint against esure Insurance Limited

Decision detail

Summary

Mr H complained that esure unfairly applied a £695 excess (£195 compulsory plus £500 voluntary) to his car insurance claim after his vehicle was damaged when he hit a deer in November 2025. Mr H argued he should not have to pay the excess as he was not at fault for the incident. esure maintained it had acted fairly in deducting the required excess from the claim settlement. The ombudsman found that policy excesses are standard industry practice and are contractually required on all claims regardless of fault, that esure clearly communicated the excess amounts in the policy documentation, and that esure was entitled to deduct the excess from the claim settlement. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that policy excesses are standard industry practice and are contractually required to be paid on any claim regardless of fault. The excess is an 'uninsured' loss that cannot be recovered from a third party when no third party is involved. esure was entitled under the policy terms to deduct the excess from the claim settlement. The ombudsman acknowledged Mr H's difficult situation but concluded he was contractually bound to pay the excess.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website