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FCA Orders £200m Payout to 270,000 Drivers After Insurers Undervalued Write‑offs and Thefts

Insurers have revamped claims valuations under the regulator’s Consumer Duty, with affected customers to be contacted directly.

Overview

  • The regulator says £129 million has already reached nearly 150,000 motorists, with payments continuing across the industry.
  • Investigators found some firms made automatic deductions for assumed pre‑existing damage, breaching fair‑claims rules.
  • The practice particularly penalised careful owners and left many unable to afford like‑for‑like replacements.
  • The FCA estimates about 120,000 customers are still due roughly £71 million after process changes by insurers.
  • Admiral has set aside £50 million for redress and Direct Line previously reviewed five years of claims, while consumers are told to complain to their insurer first and avoid fee‑charging claims firms.