Partially upheld: claim settlement valuation and service quality in motor insurance claim complaint against Admiral Insurance (Gibraltar) Limited

Decision detail

Summary

Mr P claimed on his motor insurance policy with Admiral after a collision in October 2025, six months after purchasing his car for £12,990. Admiral valued the car at £12,182 for settlement and paid £250 compensation for poor service, which Mr P disputed. The ombudsman found that Admiral's service was variable with inconsistent communication about repair versus write-off status, but upheld the £250 compensation as fair. However, the complaint was partially upheld because the ombudsman required Admiral to increase the valuation to £12,848 (the highest of four valuation guides) with 8% simple interest, finding this more appropriate given Mr P's recent purchase price and lack of evidence of significant deterioration.

The Ombudsman's reasoning

The ombudsman applied the service's standard approach of using the highest valuation guide figure as market value when neither party provides persuasive evidence to the contrary. Given Mr P paid £12,990 six months before the collision with no evidence of significant deterioration, the highest guide value of £12,848 was deemed fair and reasonable. Regarding service quality, while Admiral's communication was variable and caused some distress, much of Mr P's distress stemmed from the unexpected collision itself rather than Admiral's actions. The letters were businesslike and standard, and evidence did not support repeated call disconnections with failure to callback. The £250 compensation was considered fair given the relatively short period of disruption and the guidelines on compensation.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website