Partially upheld: claim handling, vehicle valuation, disposal of property without clear consent, loss of personal possessions complaint against Admiral Insurance (Gibraltar) Limited

Decision detail

Summary

Mr C complained about Admiral's handling of a motor insurance claim following an accident in January 2025, specifically regarding undervaluation of his car and disposal of it without clear consent, resulting in loss of personal possessions. Admiral valued the car at £7,335 (the highest trade guide valuation) and offered £200 for lost possessions plus £200 compensation for distress. The ombudsman upheld the valuation as fair based on trade guides and market evidence but upheld the complaint regarding disposal, finding Admiral failed to clearly communicate it would dispose of the car and contents. The ombudsman ordered Admiral to compensate Mr C for specifically evidenced items (designer sunglasses, wireless speaker, headphones) and documented costs (passport replacement £94, birth certificate postage £9.25) with 8% interest, subject to Mr C providing required evidence within specified timeframes.

The Ombudsman's reasoning

The ombudsman found Admiral's car valuation of £7,335 was fair as it was based on the highest trade guide valuation and supported by market evidence of comparable vehicles. However, Admiral failed to clearly communicate to Mr C that it would dispose of the car and contents when moving it to salvage agents, constituting an oversight. While Admiral advised Mr C early on that he could collect possessions himself, the lack of clarity about disposal meant Mr C may not have appreciated the urgency. The ombudsman rejected applying the policy's £200 limit for lost possessions as they were lost due to Admiral's lack of care rather than the accident itself. Mr C should be compensated for items he can evidence, with specific requirements for proof depending on the item's clarity.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website