Not upheld: claim valuation dispute and claim handling complaint against Advantage Insurance Company Limited

Decision detail

Summary

Mr P claimed on his comprehensive motor insurance policy with Advantage after his car was damaged in an accident in August 2025. Advantage initially valued the car at £2,003, then increased it to £2,350 following Mr P's submission of comparable market adverts and an engineer review. Advantage paid the £2,350 as an interim settlement in October 2025 while the valuation dispute was being reviewed. Mr P complained about the valuation, the interim settlement being paid without his agreement, and poor communication. The ombudsman found Advantage acted fairly in its valuation (which aligned with the highest of three independent valuation guide values), in paying the interim settlement, and that the £300 compensation already paid for poor service was reasonable.

The Ombudsman's reasoning

The ombudsman found that Advantage's valuation of £2,350 was fair because it aligned with the highest value returned by three independent valuation guides. The comparable adverts Mr P provided were not persuasive evidence because many were for vehicles with significantly different specifications (different age, mileage, and body type). The interim settlement did not treat the matter as concluded since Advantage acknowledged the dispute remained logged. While there were instances of poor service and confusing information, the £300 compensation already paid was proportionate to the avoidable distress caused, particularly given that the final settlement was fair.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website