Upheld: unfair vehicle valuation and claim settlement complaint against Tradex Insurance Company PLC

Decision detail

Summary

Mr F's campervan was stolen in September 2025 and declared a total loss by his insurer, Tradex Insurance Company PLC. Tradex offered £6,805 for the campervan and £889.94 for modifications, which Mr F considered too low given he had insured it for £15,000. The ombudsman found that while Tradex's reliance on motor trade guide valuations (averaging £6,805) was reasonable, the adverts provided by Tradex for comparable vehicles indicated higher replacement costs. The ombudsman upheld the complaint and ordered Tradex to settle based on the highest guide valuation of £7,488 for the campervan and £3,289.66 for modifications (with a 25% depreciation deduction), plus 8% simple interest. The ombudsman rejected Mr F's argument that the £15,000 insured value should be paid, as the policy is a market value policy rather than an agreed value policy.

The Ombudsman's reasoning

The ombudsman found that while motor trade guides are generally persuasive as they are based on nationwide sales prices, the adverts provided by Tradex indicated that comparable vehicles were available at prices above the average guide valuation. The adverts showed vehicles with similar mileage and condition being advertised at prices ranging from £5,988 to £8,386.80, suggesting the replacement cost was towards the upper end of the guide range. Therefore, the highest guide valuation of £7,488 was considered fair and reasonable to ensure Mr F could actually replace the vehicle. For modifications, a 25% depreciation deduction was appropriate given they were two to three years old and the policy operates on an indemnity basis. Mr F's claim that the £15,000 insured value should be paid was rejected because this is a market value policy, not an agreed value policy.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website