Partially upheld: claim handling, vehicle valuation, personal belongings, communication failures, lost interest complaint against Admiral Insurance (Gibraltar) Limited

Decision detail

Summary

Mr H claimed under his motor insurance policy following an accident in August 2024 where his vehicle was declared a total loss. Admiral valued the vehicle at £19,563 and paid £200 for personal belongings (spare wheel kit), but Mr H disputed the valuation and claimed he lost his belongings due to poor communication. Admiral acknowledged failures in claim handling and paid £250 compensation. The ombudsman found the valuation reasonable based on industry guides, but upheld the personal belongings claim as Admiral failed to contact Mr H as it should have, preventing him from retrieving items. The ombudsman also awarded additional compensation for lost interest, finding Mr H would have earned interest had he been properly informed of the settlement payment.

The Ombudsman's reasoning

The ombudsman found Admiral's valuation reasonable as it was based on industry-standard valuation guides and fell within the range of four guides consulted. Mr H's sales examples were not sufficiently comparable (different age, mileage, transmission). On personal belongings, Admiral's failure to contact Mr H as it should have done meant he lost the opportunity to retrieve his spare wheel kit, so Admiral should pay for a replacement (excluding fitting costs). On lost interest, the ombudsman changed its provisional view, finding that had Admiral properly communicated the payment, Mr H would logically have moved funds to a savings account and earned interest, warranting £50 compensation. The multi-car discount charge was compliant with policy terms, though Admiral should have given Mr H opportunity to add a new vehicle first, but no loss occurred as the discount was later reapplied.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website