Not upheld: claim settlement valuation and claims handling procedure complaint against Advantage Insurance Company Limited

Decision detail

Summary

Ms S claimed on her car insurance policy after her vehicle was stolen in October 2025. Advantage settled the claim in November 2025 by paying £17,942 as market value, but Ms S disputed the valuation and wanted Advantage to wait for potential recovery of her car instead. Ms S complained that the valuation was too low and that Advantage should not have closed the claim while she disputed it. The ombudsman found that Advantage's valuation was reasonable, based on four trade guides and supported by market evidence, and that it was fair for Advantage to settle the claim promptly rather than hold it open indefinitely. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that Advantage's use of multiple trade guides was a reliable and reasonable approach to valuation. The valuation of £17,942 fell within the range of trade guide valuations (£16,640 to £18,195) and was supported by retail advert examples. While Ms S's car had advantageous features (single ownership, full service history), an insurer need only show the valuation is sufficient for reasonable replacement, not that an identical vehicle with identical history is available at that exact price. The ombudsman also found it reasonable for an insurer to settle a stolen vehicle claim promptly rather than hold it open indefinitely pending uncertain recovery, and that accepting interim payment did not prejudice Ms S's right to dispute the amount.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website