Not upheld: misrepresentation on insurance application and additional premium charges complaint against Admiral Insurance (Gibraltar) Limited

Decision detail

Summary

Mr H complained about an additional premium of £74.54 charged by Admiral Insurance after it discovered he had misrepresented his driving licence tenure on his motor insurance application. He had stated he held his licence for 10 years when he had actually held it for 9 years. Admiral conducted validation checks in November 2025 and recalculated the premium accordingly, offering Mr H the choice to pay the additional amount or cancel. The ombudsman found the misrepresentation was clear and qualifying under CIDRA, and Admiral's response was fair and reasonable, so the complaint was not upheld.

The Ombudsman's reasoning

The ombudsman applied the Consumer Insurance (Disclosure and Representations) Act 2012 (CIDRA), which requires consumers to take reasonable care not to misrepresent details. The question asked was clear and understandable, with helpful guidance to check the licence. Mr H's answer of 10 years was objectively incorrect as he had held the licence for 9 years. This constituted a qualifying misrepresentation because Admiral would have charged a different premium. While CIDRA does not permit insurers to charge additional premiums, Admiral's offer to either pay the additional amount or cancel was reasonable, particularly given the short remaining policy term and the modest additional cost relative to the total premium.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website