Not upheld: Motor insurance, claim handling complaint against Advantage Insurance Company Limited

Decision detail

Summary

Mr N complained that Advantage Insurance handled his motor insurance claim poorly following a serious motorway collision in March 2024. After his car suffered a blown tyre and became stranded in the middle of the motorway, a fourth vehicle collided with it. Mr N disputed Advantage's decision to accept liability for the third party's claim and raised concerns about inadequate investigation and poor communication. The ombudsman found that Advantage's liability decision was fair and reasonable given that Mr N's car was stationary without hazard lights in dark, low visibility conditions, making it an unavoidable hazard for other drivers. While acknowledging service failures in communication, the ombudsman determined the £100 compensation already paid was sufficient and did not uphold the complaint.

The Ombudsman's reasoning

The ombudsman found that while it is not the FOS's role to determine fault for an accident, it can assess whether the insurer treated the policyholder fairly in handling claims. Advantage's decision to accept liability for the third party's claim was reasonable given that Mr N's stationary car, without hazard lights, in low visibility motorway conditions, presented a significant hazard that other drivers could not reasonably avoid. The ombudsman noted Advantage's experience with court liability decisions and found the business's reasoning persuasive. Although there were service failures in communication, the £100 compensation was deemed sufficient to address these.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website