Upheld: unfair claim handling and misleading communications complaint against esure Insurance Limited trading as Sheilas' Wheels

Decision detail

Summary

Mr C claimed on his motor insurance policy with esure following a December 2024 accident. esure accepted the claim and sought to treat it as a total loss, proposing a salvage deduction that Mr C disputed. Mr C withdrew the claim and settled directly with the third-party insurer. The ombudsman found that while esure's total loss decision and salvage valuation were reasonable, esure acted unfairly by providing conflicting information about third-party details, vehicle inspection, repair options, and total loss treatment. The complaint was upheld and esure was directed to pay the £200 compensation they had offered.

The Ombudsman's reasoning

While esure's decision to treat the vehicle as a total loss was reasonable given the repair costs were 72% of market value, and the salvage deduction amount was reasonable based on standard industry arrangements with salvage agents, esure acted unfairly in their overall handling of the claim by providing conflicting information to Mr C on multiple occasions regarding third-party details, inspection requirements, repair options, and total loss treatment. This caused distress and inconvenience warranting compensation.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website