Not upheld: claims handling delays and refusal to cover storage costs and injury liability complaint against Advantage Insurance Company Limited

Decision detail

Summary

Mrs Y claimed that Advantage Insurance caused delays, an injury to her grandchild, and storage costs following a motor accident claim. After Advantage wrote off her vehicle and paid a settlement of £2,777.74 on 31 March 2025, the salvage agent did not contact her about the retention payment until 12 May 2025 - a six-week delay. Mrs Y placed the damaged car in storage to prevent further injury and later arranged repairs. Advantage offered £200 compensation for the delay but refused to cover storage costs or accept liability for the injury. The ombudsman found the compensation fair redress for the delay but rejected claims for storage costs and injury liability, finding Mrs Y should have proactively contacted the business and had funds available to repair the vehicle herself.

The Ombudsman's reasoning

The ombudsman acknowledged that a six-week delay for the salvage agent to contact Mrs Y was unreasonable and that Advantage should have liaised with its salvage agent to confirm the retention fee before providing the settlement payment. However, the ombudsman found the £200 compensation already offered was fair redress for this delay. The ombudsman rejected liability for storage costs, finding that Mrs Y made the decision to store the vehicle without notifying Advantage in advance, and that she should have contacted the business to query the retention figure within days of receiving the settlement. The ombudsman also rejected liability for the injury to the grandchild, noting that Mrs Y had funds available from the settlement to repair the car and prevent it remaining damaged on her driveway.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website