Upheld: claim handling — delays in repatriation, poor communication, partial liability for caravan damage, unfair reliance on repair estimate complaint against RAC Insurance Limited
Financial Ombudsman decision DRN-6400144 of 2026-06-03T00:00:00+00:00. claim handling — delays in repatriation, poor communication, partial liability for caravan damage, unfair reliance on repair estimate complaint against RAC Insurance Limited. Outcome: Upheld.
Decision detail
| Reference | DRN-6400144 |
|---|---|
| Decision date | 2026-06-03T00:00:00+00:00 |
| Firm | RAC Insurance Limited |
| Product | insurance — European breakdown cover |
| Claim type | claim handling — delays in repatriation, poor communication, partial liability for caravan damage, unfair reliance on repair estimate |
| Outcome | Upheld |
| Remedy | RAC Insurance Limited directed to: (1) Pay Mr M £3,000 towards repair of caravan damage (50% of £5,999 quote); (2) Pay Mr M £400 compensation for distress and inconvenience caused by avoidable delays and poor communication |
Summary
Mr M claimed under his European breakdown cover policy with RAC after his vehicle broke down abroad in June 2025 while towing a caravan. When the caravan was recovered in July 2025, it suffered extensive damage. RAC declined to cover car repairs (€6,000 estimate exceeded market value) but agreed to repatriate both vehicles and contribute 50% towards caravan repairs. The ombudsman found RAC caused avoidable delays in repatriation (from 9 July agreement to 1 October delivery), poor communication, and partial responsibility for caravan damage because the recovery agent should have verified proper attachment. RAC was directed to pay £3,000 (50% of £5,999 repair quote) and £400 compensation for distress and inconvenience.
The Ombudsman's reasoning
The ombudsman found RAC partly responsible for caravan damage because although Mr M likely attached the caravan, the recovery agent as the expert should have verified proper attachment rather than relying on Mr M's assurances without checks. RAC was responsible for ensuring the 50% contribution payment. The ombudsman found RAC caused avoidable delays in repatriation by: (1) waiting to obtain its own estimate before agreeing to repatriate; (2) delaying the request for a repatriation quote until 27 August despite agreeing on 9 July; (3) failing to explain the delay from 19 September (UK arrival) to 1 October (delivery to address). Poor communication about the 50% offer and recovery schedule added to Mr M's distress. While some delay was inherent to the repatriation process, RAC's actions caused considerable further avoidable distress over many months.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| RAC Insurance Limited, all decisions | 226 | 34% |
Source
Read the original decision on the Financial Ombudsman Service website