FOS hones in on high motor insurance complaints

“We continue to see a high number of complaints about car or motorcycle insurance,” the authority highlighted.

There were 2769 cases opened at the FOS in the third quarter, putting it fourth in the top five most complained about table (see box).

The FOS reported that in some instances people had complained that their car was worth more than their insurer had given them, following a theft or an accident where the car was written off.

“Where we upheld these complaints, it was often because we found the insurer’s offer was unfair. In some cases, we saw examples of insurers not considering all the available information, which tended to lead to offers that were less favourable,” the FOS stated.

In December the Financial Conduct Authority publicly warned insurers not to undervalue cars or other items when settling claims saying it had seen evidence the practice was happening.

The FOS continued: “We have also seen an increase in enquiries from consumers about insurers rejecting their claim for a vehicle theft by deception.”

Rulings

The FOS ruled in favour of consumers in 29% of motor insurance cases between October and December 2022, an uplift on the 27% rate in the previous quarter.

However, this was still below the average uphold rate of 35% for complaints resolved in the latest period.

Buildings

Buildings insurance complaints dropped out of the top five table in the second quarter.

It fell further in Q3 to eighth spot overall with 1,299 new cases, down from 1621 in the prior quarter. The uphold rate though increased quarter-on-quarter from 29% to 33%.

Overall the ombudsman received 41,303 new complaints in Q3, up from 35,342 new complaints in the same period in 2021/22.

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