FCA warns insurers, again, on undervaluing total loss motor claims

Cars in car park

The Financial Conduct Authority has confirmed finding evidence that suggests motor insurers are offering customers less than the full value of written-off or stolen vehicles and, in some cases, only increasing offers when a customer complains.

The watchdog previously warned insurers in December 2022 not to undervalue cars and other insured items when settling insurance claims.

It surveyed 12 firms, making up around 70% of the market, to get information about claims-handling processes and assess oversight and control in monitoring total loss cases.

The process included a data request to assess how settlement amounts compared with initial guide valuations.

Improvements

While it acknowledged that there were examples of good practice in the

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