FCA says insurers undervaluing cars and other items at claims stage
The Financial Conduct Authority has warned insurance firms not to undervalue items when settling insurance claims, especially during the cost of living squeeze, saying it has seen evidence the practice is happening.
In a strongly worded statement the FCA said it has seen consumers being offered prices lower than fair market value when making a claim to their insurance provider.
In some cases the offer to the consumer was increased to fair market value by the claims staff only after the consumer made a complaint.
The statement mentioned evidence of consumers having cars written off after a motor accident and then offered a price lower than fair market value when making a claim, which is against FCA rules.
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