Upheld: undervaluation of vehicle in total loss claim settlement complaint against Acromas Insurance Company Limited
Financial Ombudsman decision DRN-6391405 of 2026-05-29T00:00:00+00:00. undervaluation of vehicle in total loss claim settlement complaint against Acromas Insurance Company Limited. Outcome: Upheld.
Decision detail
| Reference | DRN-6391405 |
|---|---|
| Decision date | 2026-05-29T00:00:00+00:00 |
| Firm | Acromas Insurance Company Limited |
| Product | Motor insurance |
| Claim type | undervaluation of vehicle in total loss claim settlement |
| Outcome | Upheld |
| Remedy | Revalue car at £1,362 (net of excess and interim payments); pay 8% simple interest calculated from one month after claim date to payment date; pay £100 compensation for inconvenience of extended valuation dispute |
Summary
Mr E claimed on his car insurance policy with Acromas after his car was hit from behind and declared a total loss. Acromas valued the car at £908 based on one industry guide using a 'fair' condition rating, but Mr E disputed this, arguing he could not replace the car for that amount. The FOS Investigator found the same guide returned £1,362 using a 'good' condition rating. The Ombudsman upheld the complaint, finding the 'fair' rating was unjustified given the accident photos showed no pre-accident wear and Mr E's evidence of meticulous maintenance since purchasing the car new in 1998. Acromas was ordered to revalue at £1,362, pay interest, and compensate Mr E £100 for inconvenience.
The Ombudsman's reasoning
The Ombudsman found that while using industry valuation guides is standard practice, Acromas incorrectly applied the 'fair' condition rating to the car. Reviewing the accident photos and Mr E's evidence of meticulous maintenance, the car's external condition (excluding accident damage) appeared to be in 'good' condition, not 'fair'. This condition rating directly affects the guide valuation returned. Using the correct 'good' condition rating with the same industry guide produced £1,362, which is the fair market value under the policy terms.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Acromas Insurance Company Limited, all decisions | 861 | 30% |
| Motor insurance, all decisions | 24,036 | 35% |
Source
Read the original decision on the Financial Ombudsman Service website