MSE News: Car Insurers to pay £200m in compensation after short-changing 270,000 motorists

MSE_Sal

The FCA’s found some insurers underpaid claims on written-off or stolen cars. Around 270,000 drivers will share £200m – with nearly 150,000 already paid. If you’re due money, your insurer will contact you. You don’t need to do anything – just watch out for scams.

Read the full story:
Car written off or stolen? Insurers to pay £200m in compensation after short-changing 270,000 motorists

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Este365

Will the insurance company of the third party who was at fault contact me if there is a further payment due, as my car was considered a category N write off. My insurer was not involved.

brizzlegirl

We had a 14 yo car written off as not worth repairing (after minor dent on wing) about a year ago. We didn’t challenge the offer given at the time. Churchill was the insurer. Should I ask for evidence that it was a fair price and how they arrived at it or do you think their processes would have improved by August 2024? Thanks 

XRS200

brizzlegirl said:

We had a 14 yo car written off as not worth repairing (after minor dent on wing) about a year ago. We didn’t challenge the offer given at the time. Churchill was the insurer. Should I ask for evidence that it was a fair price and how they arrived at it or do you think their processes would have improved by August 2024? Thanks 

The article says if you're due compensation the insurer will contact you.

MyRealNameToo

Este365 said:

Will the insurance company of the third party who was at fault contact me if there is a further payment due, as my car was considered a category N write off. My insurer was not involved.

The review stems from Consumer Duty legislation which is between an insurer and its customers, it doesnt impact third parties. As such the scope of their investigations were likely to be limited to insurers total losing their clients vehicles not third parties - though there has been no definitive statement of scope that says if TPs were in or out. 

As a third party you have significantly lower protections, hence why you can use the Financial Ombudsman etc. 

brizzlegirl said:

We had a 14 yo car written off as not worth repairing (after minor dent on wing) about a year ago. We didn’t challenge the offer given at the time. Churchill was the insurer. Should I ask for evidence that it was a fair price and how they arrived at it or do you think their processes would have improved by August 2024? Thanks 

Churchill is a sub brand of Direct Line Group (now Aviva). They've already been through their audit and done corrective actions. 

As the article states, a large number of the cases have already been reviewed. For those that haven't the insurers have to proactively review the cases matching the FCAs instructions and will automatically contact those that have a problems. 

There was a flurry of posts a while back here as people were receiving unsolicited cheques from DL brands and were concerned it was some weird fraud or such. 

bglincs

The FCA statement mentions motorists and vehicles, does this investigation cover all motorists and vehicles (motor cycles, vans, campers, etc) or was it just limited to motor cars. 

medievalbiker

Will this also affect motorcycles as well as I had a motorcycle stolen that was only 3 months old but only recieved 2/3 of it's value