Upheld: unfair total loss valuation settlement and service failures (delays, lack of communication, failure to provide courtesy car) complaint against Admiral Insurance (Gibraltar) Limited
Financial Ombudsman decision DRN-6188451 of 2026-06-11T00:00:00+00:00. unfair total loss valuation settlement and service failures (delays, lack of communication, failure to provide courtesy car) complaint against Admiral Insurance (Gibraltar) Limited. Outcome: Upheld.
Decision detail
| Reference | DRN-6188451 |
|---|---|
| Decision date | 2026-06-11T00:00:00+00:00 |
| Firm | Admiral Insurance (Gibraltar) Limited |
| Product | Motor insurance |
| Claim type | unfair total loss valuation settlement and service failures (delays, lack of communication, failure to provide courtesy car) |
| Outcome | Upheld |
| Remedy | Admiral must: (1) Increase settlement offer to £149,930 less policy excess (an increase of £14,670) with 8% simple interest from date initial settlement was paid to final settlement; (2) Reimburse £313.34 for car hire costs with 8% simple interest from 13 August 2025. |
Summary
Mr C claimed on his motor insurance policy after a branch damaged his car, resulting in a total loss. Admiral valued the car at £135,260 (average of two valuation guides) less excess, but Mr C disputed this, believing it was worth more based on similar cars for sale. The FOS investigator obtained three valuation guide quotes with the highest being £149,930 and recommended Admiral increase its offer to this amount. Admiral also failed to provide a courtesy car immediately as required by policy terms, causing Mr C to incur £313.34 in car hire costs. The ombudsman upheld the complaint, requiring Admiral to increase the settlement to £149,930 with 8% interest and reimburse the car hire costs with interest, finding that insurers should pay the highest valuation guide figure to ensure fair replacement value.
The Ombudsman's reasoning
The ombudsman found that Admiral's valuation was unfair because it paid the average of two valuation guides (£135,260) rather than the highest, contrary to FOS expectations that insurers should pay the highest valuation guide figure to ensure fair replacement value. The investigator obtained an additional valuation of £149,930, which was higher than Admiral's figure. While Mr C's evidence of cars for sale at £165,000-£185,000 was considered, most were enhanced models or newer cars with less mileage; similar cars of the same year and mileage were advertised between £134,950-£149,950, supporting the highest valuation guide figure. The ombudsman also found Admiral should reimburse the car hire costs of £313.34 as the courtesy car should have been provided immediately under policy terms. The £425 compensation for service delays and lack of communication was considered fair and reasonable.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Admiral Insurance (Gibraltar) Limited, all decisions | 1,924 | 44% |
| Motor insurance, all decisions | 23,874 | 35% |
Source
Read the original decision on the Financial Ombudsman Service website