Insurance companies have been told they must offer full value to settle claims relating to written-off and stolen cars after further “shortcomings” were found by an industry regulator.
A review by the Financial Conduct Authority (FCA) found that some firms were offering customers less than their vehicle was worth and, in some cases, only increased the offer when a customer complained.
The exercise followed up on previous warnings from the watchdog, the latest in 2022, about behaviour in determining claim values.
The FCA said it was engaging with the firms included in its review to ensure they made improvements.
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Insurers must handle claims promptly and fairly under its rules.
Following the introduction of the Consumer Duty in July last year, firms are also required to ensure consumers are at the heart of their business and must act to deliver good outcomes for them.
Customers who think their claim may have been undervalued can complain to their insurer and then to the Financial Ombudsman Service if their complaint is not resolved.
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Sheldon Mills, the organisation’s executive director for consumers and competition, said: “Having your vehicle written off or stolen can be intensely stressful and we expect firms to offer the right support to help their customers.
“We expect all motor insurers to take note of our findings and we are engaging directly with those that have issues that need to be addressed.”
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