Additional Insurance payouts for 270,000 motorists
Additional Insurance payouts for 270,000 motorists
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Original Poster:

45,191 posts

213 months


https://www.fca.org.uk/news/press-releases/over-27...

Drivers to receive £740 payouts after car insurance scandal

It seems that Insurance Companies were lowballing claimants and not taking into account the fact that some owners looked after their cars to a much higher standard than others (I'm guessing a lot of PHers would fall into this category)

Fully justified compo for once


InitialDave

13,710 posts

136 months

It's not clear to me from that what the metrics are for who gets a payout? Any further detail?

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Original Poster:

45,191 posts

213 months

InitialDave said:
It's not clear to me from that what the metrics are for who gets a payout? Any further detail?
Afaics if you had a mint-condition Rover 800 which was washed/waxed weekly with Unicorn cream and the oil changes done every 4 months and generally treated as one would treat a favourite child then if/when it was written off the Insurance company wouldnt take any of this love and affection into account. They'd only pay out the price of a 200,000 miles model where the bodywork was 98% rust and 2% body filler.

TL:DR the insurance companies underpaying claimants.

I'm guessing they have a record of what the real market value of the car was and what they actually paid out and now have to go back and handover the shortfall ?

119

13,865 posts

53 months

I suspect many might see their premiums rise to cover this.


Cold

16,178 posts

107 months

In other unrelated news, insurance premiums are set to rise for customers to offset unexpected costs incurred by insurance companies.

119

13,865 posts

53 months

Cold said:
In other unrelated news, insurance premiums are set to rise for customers to offset unexpected costs incurred by insurance companies.
hehe

Evercross

6,682 posts

81 months

Cold said:
In other unrelated news, insurance premiums are set to rise for customers to offset unexpected costs incurred by insurance companies.
Rather that than be under insured. What is the point in paying for comprehensive cover otherwise?

v8notbrave

89 posts

30 months

Interesting, I've been amused my 2005 S4 V8 always comes up at less than £1500 value whenever I insure, not bothered me. Any example with a working engjne is 2-3k, with good history I'd like to think mine is 5-6k on a good day. Some special ones are at dealers for 9k plus, but insurance would default to less than 1.5k???

JagLover

45,116 posts

252 months

I had a pay out on a write off in late 2022 that I thought was very fair. Mentions a warning being given in 2022 so maybe they had already started to change their ways.

LennyM1984

907 posts

85 months

Weirdly, I think I may already have benefited from this.

In 2019 my Porsche Boxster was squished by a winnebago driving on the wrong side of the road. After a bit of negotiation, the insurance company paid out what I felt was a fair price (it would have bought me another similar car albeit without some of the maintenance that had been done on mine - suspension arms, new water pump etc etc).

Fast forward to last year and I received a letter saying that they had under-valued my car and would be sending a cheque for the remaining amount (in my case about £2k). I thought it was a scam to begin with but lo and behold a few weeks later the cheque arrived. I mentioned it to a few people as a "hey you won't believe my luck" kind of thing but otherwise just assumed that I had benefited from some weird law/loophole.

The eventual amount paid out was £2.5k more than I had paid for the car back in 2017 and considerably more than the car cost + maintenance (which I did myself so only had to pay for parts).

Seems like Direct Line were perhaps just getting ahead of this ruling...

Inbox

415 posts

3 months

From the comments so far no one appears to be surprised at the behaviour of insurers, the surprise is something has actually been done about it!

Edited by Inbox on Friday 19th September 18:49

Mr Tidy

27,519 posts

144 months

Thanks for flagging this up. thumbup

My car got rear-ended in 2023 by a car insured by Hastings and they were very mean with their settlement, and totally unwilling to reflect market prices.