Upheld: Other regulated complaint complaint against Admiral Insurance (Gibraltar) Limited
Financial Ombudsman decision DRN-6215115 of 2026-07-03T00:00:00+00:00. Other regulated complaint complaint against Admiral Insurance (Gibraltar) Limited. Outcome: Upheld.
Decision detail
| Reference | DRN-6215115 |
|---|---|
| Decision date | 2026-07-03T00:00:00+00:00 |
| Firm | Admiral Insurance (Gibraltar) Limited |
| Product | Motor insurance |
| Claim type | Other regulated complaint |
| Outcome | Upheld |
| Remedy | Pay £588 (difference between £6,773 and £7,361) plus 8% simple interest per annum calculated from the date of interim payment to final payment date. Pay £200 compensation for distress and inconvenience caused by Admiral's handling of the claim. |
Summary
Mrs F claimed on her motor insurance policy with Admiral following a December 2025 accident that resulted in a total loss. Admiral valued the car at £6,773 using an average of three valuation guides, but Mrs F complained she could not replace her car for this amount. The ombudsman found Admiral breached good industry practice by not paying the highest valuation guide (£7,361) and upheld the complaint. Admiral was directed to pay the £588 difference plus 8% interest and £200 compensation for distress and inconvenience caused by the undervaluation and claim handling.
The Ombudsman's reasoning
The ombudsman applied the FOS's established approach that insurers should pay the highest of available valuation guides unless they can provide evidence to support a lower valuation. Admiral's use of an average of the three guides was not in line with good industry practice. The Northern Ireland-based advert did not provide sufficient evidence to justify paying below the highest guide. Mrs F's adverts were not comparable as they were for cars with different specifications. The policy required payment of market value, which is fairly determined by the highest valuation guide.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Admiral Insurance (Gibraltar) Limited, all decisions | 1,973 | 43% |
| Other regulated complaint, all decisions | 18,992 | 19% |
| Motor insurance, all decisions | 24,148 | 35% |
Source
Read the original decision on the Financial Ombudsman Service website