Not upheld: Motor insurance, total loss valuation complaint against UK Insurance Limited
Financial Ombudsman decision DRN-6445676 of 2026-06-25T00:00:00+00:00. Motor insurance, total loss valuation complaint against UK Insurance Limited. Outcome: Not upheld.
Decision detail
| Reference | DRN-6445676 |
|---|---|
| Decision date | 2026-06-25T00:00:00+00:00 |
| Firm | UK Insurance Limited |
| Product | Motor insurance |
| Claim type | Motor insurance, total loss valuation |
| Outcome | Not upheld |
| Remedy | UK Insurance Limited should pay Miss H an additional £189 (the difference between initial payment of £6,826 and revised offer of £7,015). Simple interest should be paid on this amount using a time-weighted average of the Bank of England base rate plus 1% from the date of initial payment until settlement. UK Insurance Limited should pay an additional £100 for poor service (on top of the £100 already paid). |
Summary
Miss H complained about UK Insurance Limited's valuation of her car following an accident claim. UKI initially valued the car at £6,909 (averaging four motor valuation guides) and paid £6,826 after deducting £83 for pre-existing damage. Miss H disputed this valuation and believed it should be £8,000-£9,000 based on advertised prices for similar vehicles. UKI subsequently increased its offer to £7,015 (the highest of the four guides). The ombudsman found UKI's valuation methodology and revised offer to be fair and reasonable, as motor valuation guides are more reliable than advertised prices and account for factors like mileage differences. The ombudsman upheld UKI's valuation and ordered payment of the additional £189 plus interest and compensation for poor service.
The Ombudsman's reasoning
The ombudsman applied the standard approach of using motor valuation guides to assess fair market value, finding them more persuasive than advertised asking prices as they reflect likely retail selling prices based on nationwide research. The ombudsman noted that advertised prices often differ significantly from actual selling prices and that mileage differences can materially affect value. The ombudsman examined Miss H's evidence of higher-priced similar vehicles but found most had lower mileage, and noted some comparable vehicles were advertised below UKI's valuation. The ombudsman concluded UKI's revised offer of £7,015 was fair and reasonable, and the £83 deduction for pre-existing damage was justified.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| UK Insurance Limited, all decisions | 3,739 | 33% |
| Motor insurance, total loss valuation, all decisions | 3,483 | 35% |
| Motor insurance, all decisions | 24,103 | 35% |
Source
Read the original decision on the Financial Ombudsman Service website