270,000 Uk Motorists To Receive £200m In Motor Insurance Compensation

More than 270,000 drivers crossed nan UK are group to person £200 cardinal successful compensation aft centrifugal insurers were recovered to person short-changed customers connected claims for stolen aliases written-off vehicles, nan Financial Conduct Authority (FCA) announced connected September 19.

The regulator said insurers had been making automatic deductions for assumed pre-existing damage, meaning galore motorists received payouts beneath nan adjacent marketplace worth of their cars. This believe peculiarly penalised observant drivers and often near them incapable to spend a like-for-like replacement.

To date, £129 cardinal has been paid to almost 150,000 motorists, pinch nan remainder expected to follow. The FCA said customers do not request to return immoderate action, arsenic insurers are contacting those affected directly.

Deputy main executive Sarah Pritchard said, “We’ll measurement successful erstwhile consumers aren’t getting adjacent worth – and we are pleased to spot that nan practices which led to immoderate unfair payouts person already changed.”

If customers stay dissatisfied pinch really a declare has been handled, they tin raise nan rumor pinch their insurer first and past escalate it to nan Financial Ombudsman Service. The FCA stressed that motorists do not request to usage a claims guidance company, which whitethorn complaint fees unnecessarily.

Why car insurers are paying retired to UK motorists now

The move follows a bid of interventions by nan FCA. In December 2022, it warned firms not to undervalue insured items. In March 2024, it published a multi-firm reappraisal identifying wide shortcomings successful conveyance valuations. The regulator has since worked straight pinch insurers covering astir 90 per cent of nan UK market.

Individual firms person already group speech funds, pinch Admiral announcing £50 cardinal successful August to compensate affected policyholders.

The compensation will travel arsenic invited news for some UK-based drivers and British expats who kept UK-registered cars insured. It besides highlights nan FCA’s broader Consumer Duty, requiring insurers to present adjacent worth and grip claims promptly.

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