Overview

• The regulator expects about £200 million in redress for roughly 270,000 drivers, with £129 million already paid to nearly 150,000 customers.
• The FCA found some firms made automatic deductions for supposed pre-existing damage on total-loss and theft claims, leading to unfairly low settlements.
• Insurers have revised claims processes to meet Consumer Duty standards, which the FCA says has stopped the practices that led to underpayments.
• Customers due money will be contacted by their insurer, and the FCA advises against using claims management companies and directs disputes to the Financial Ombudsman Service.
• The action follows a 2022 warning and a 2024 multi-firm review of vehicle valuations, while firms such as Admiral have set aside funds, including a £50 million provision, to cover liabilities.