Partially upheld: unfair car valuation in claim settlement complaint against Admiral

Decision detail

Summary

Mr H claimed on his motor insurance policy after his car was damaged by a bird strike. Admiral's independent assessor valued the car at £15,000 based on four comparable vehicle adverts, but Mr H disputed this, arguing it did not reflect his car's low mileage and exceptional condition. The FOS investigator found a motor trade guide that valued the car at £17,833 and noted that three of Admiral's four comparable vehicles had materially higher mileage. The ombudsman partially upheld the complaint, finding Admiral's valuation was not supported by the most relevant evidence and directing them to pay the motor trade guide valuation of £17,833 plus interest. Other complaints regarding hire car removal, personal possessions, and fault claim recording were not upheld as Admiral acted in accordance with policy terms and standard insurance practice.

The Ombudsman's reasoning

The ombudsman applied the FOS approach to car valuations, which requires the insurer to reach a fair and reasonable amount supported by motor trade guides and other evidence, and to demonstrate the valuation allows the policyholder to purchase a like-for-like replacement. Although Admiral's valuation was supported by some evidence, the ombudsman found that a motor trade guide specifically covering Mr H's car model valued it at £17,833, and the comparable vehicles used by Admiral's assessor had materially higher mileage, making them less comparable. The ombudsman therefore directed Admiral to pay the higher motor trade guide valuation. The ombudsman upheld Admiral's other actions as compliant with policy terms and standard insurance practice.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website