Poor car insurance payouts leaves Which? calling for the FCA to hold firms accountable
Which?
The research also shows that customers are feeling ripped off by their insurers. Eight out of 24 providers scored just two stars out of five for settlement values in Which?'s annual survey.
Providers only getting two stars for settlement values include: AA, Admiral, Bank of Scotland, First Central, Halifax, Quotemehappy.com, Sainsbury's Bank and Swinton Insurance.
Which? is concerned that some insurers may potentially be giving out much lower payments than they should be when customers make a claim after an accident.
Rocio Concha, Which?
“It's concerning to see that a third of firms analysed are rated poorly by customers for their payout values, despite repeated warnings from the regulator not to undervalue cars when settling claims.
“There is ample data available to firms and regulators on car values by age, and firms are obliged under the Consumer Duty to demonstrate fair value. The FCA must now insist that firms take action to assure customers they will get a fair price for their vehicle should they need to claim, without undue hassle or needing to complain to get a better offer.”
What should I do if I think my insurer’s offer is too low?
If you think your insurer’s offer on your claim is too low (within reason) you can use Which?’s template letter to reject the offer and ask for a revised offer.
If you’re not satisfied with what your insurer offers, you can complain using your insurers complaints process.
Lydia Bell-Jones
With a background in banking, Lydia has been writing professionally for over five years. She is passionate about helping people improve their personal finances and has a particular interest in the connection between money and mental health.
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