Not upheld: service complaint - inappropriate communication and incorrect claim status notification complaint against Advantage Insurance Company Limited
Financial Ombudsman decision DRN-6276285 of 2026-04-22T00:00:00+00:00. service complaint - inappropriate communication and incorrect claim status notification complaint against Advantage Insurance Company Limited. Outcome: Not upheld.
Decision detail
| Reference | DRN-6276285 |
|---|---|
| Decision date | 2026-04-22T00:00:00+00:00 |
| Firm | Advantage Insurance Company Limited |
| Product | motor insurance |
| Claim type | service complaint - inappropriate communication and incorrect claim status notification |
| Outcome | Not upheld |
| Remedy | £100 compensation already paid by Advantage for the incorrect letter of 18 March 2025 (in addition to £100 previously paid for the adviser's threat). No further remedy ordered. |
Summary
Ms W complained that Advantage Insurance and its solicitors harassed her in January 2025 by contacting her about legal proceedings related to her 2023 motor accident claim, and that she was threatened with the claim being changed to a fault claim. Advantage upheld the complaint and paid £100 compensation. The ombudsman found that Advantage acted within its contractual subrogation rights and that the solicitors' letter adequately explained the situation. Although Advantage's subsequent letter of 18 March 2025 incorrectly threatening to close the claim as a fault claim was inappropriate, the ombudsman found the £100 compensation reasonable given Advantage's swift correction within three days.
The Ombudsman's reasoning
The ombudsman found that instructing solicitors to recover claim costs through subrogation is standard insurance industry practice and is permitted under the policy terms. The solicitors' letter of 3 January 2025 adequately explained what was happening and why Ms W's involvement was needed. While the 18 March 2025 letter was incorrect and inappropriate, Advantage quickly corrected it within three days and paid £100 compensation, which the ombudsman considered reasonable and in line with FOS compensation guidelines.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Advantage Insurance Company Limited, all decisions | 1,756 | 40% |
Source
Read the original decision on the Financial Ombudsman Service website