Not upheld: Motor insurance, total loss valuation complaint against Advantage Insurance Company Limited

Decision detail

Summary

Mr W claimed on his motor insurance policy with Advantage after his car was damaged in a collision in late 2025. Advantage declared the car a write-off and valued it at £1,375, which Mr W felt was insufficient to replace the vehicle. Mr W provided adverts for similar cars but Advantage maintained its valuation. The ombudsman reviewed the complaint and found that Advantage's valuation of £1,375 matched the highest figure from industry valuation guides for a vehicle with the same specification and mileage. The adverts Mr W provided were not persuasive as they showed vehicles with different specifications and lower mileage. The ombudsman concluded that Advantage acted fairly and reasonably and did not uphold the complaint.

The Ombudsman's reasoning

The ombudsman's role is to determine whether the firm acted fairly and reasonably, not to provide valuations. The FOS approach is to use valuation guides to establish whether an offer is fair. Advantage paid the highest valuation guide figure (£1,375) for a vehicle with the same specification and mileage. The adverts Mr W provided were not persuasive as they showed vehicles with different specifications, age and lower mileage. Maintenance and consumables do not necessarily add value to a vehicle. In the absence of evidence showing the valuation guide figures are wrong, Advantage acted fairly and reasonably.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website