Upheld: Home insurance claim disputes complaint against UK Insurance Limited

Decision detail

Summary

Mr A claimed on his motor insurance policy in 2019 after his car was damaged. Repairs by UKI's approved repairer were inadequate and required multiple rework visits over seven years. In February 2026, the car was deemed a total loss following an independent inspection that found water damage. UKI offered £3,429 in settlement, but Mr A disputed this, arguing the valuation should be based on the 2019 incident date and that certain features were not accounted for. The ombudsman upheld the complaint, finding that while the 2026 valuation date was fair, UKI's settlement amount was not supported by evidence from the main valuation guides, and increased the settlement to £3,978 with interest.

The Ombudsman's reasoning

The ombudsman determined that using February 2026 as the valuation date was reasonable because Mr A had benefited from using the car for seven years, driven over 50,000 additional miles, and the car had passed annual MOTs, meaning the 2026 date reflected its true age and condition at the point of total loss. However, the ombudsman found that UKI's valuation of £3,429 was not supported by the evidence, as the investigator's valuations from the same three main guides showed a range of £3,872-£3,978, with the highest being £3,978. The ombudsman concluded that using the highest valuation would ensure Mr A could replace his car with one of similar make, model and specification. The ombudsman rejected arguments about the towbar and private registration as unsupported by evidence, though allowed UKI to review private registration transfer costs if receipts were provided.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website