⚠️ Direct Line / Motability Insurance Complaint - Financial Ombudsman

mgg1971

I'm a disabled Motability scheme user (enhanced PIP, DLA recipient) and cancer patient who has taken my case to the Financial Ombudsman after Direct Line denied my insurance claim in a deeply shocking way.

What happened: In May 2025, when I added two named drivers to my policy, Direct Line's system automatically removed ME — the policy holder — from my own insurance. I received zero notification. I continued paying premiums for 8 months believing I was covered. In February 2026, I was involved in a minor single-vehicle accident (under 5mph, no third parties, no injuries). When I reported it, I discovered for the first time that I wasn't on my own policy.

Direct Line then denied my claim entirely.

Despite being the policy holder, driving my own vehicle, having paid every premium, and having a clean licence — they refused to pay because of a system error they never told me about. I've raised this with the Financial Ombudsman on grounds of FCA Consumer Duty breaches, failure to notify, unjust enrichment (taking premiums for coverage they now say didn't exist), and failure to protect a vulnerable customer.

If you're on the Motability scheme, please check your Certificate of Motor Insurance to make sure YOU are listed as a named driver on your own policy.

Can anyone suggest anything else I could do to put pressure on Direct Line to reconsider their decision, including putting pressure on social media platforms please (especially since I cannot afford to pay for the car which is a right-off and all of the associated costs of transporting the car to a garage, which is what Direct Line have stated that I am liable for)?

Woodstok2000

The car got written off in a crash below 5mph? Who made that decision - not direct line if they're claiming you're not insured....

When you got the updated insurance certificate, were you still named alongside the 2 additional drivers?

Try Facebook, twitter (X), LinkedIn and Trustpilot. Also try newspapers consumer rights columns...

Isthisforreal99

Not sure what else you can do beyond going to FOS but dare I suggest you cut back on the hyperbole of unjust enrichment etc. It is perfectly possible for the policyholder and the insured persons to be different. Not sure what relevance a clean licence has.

Is it possible that instead of just adding the 2 named drivers you inadvertently removed yourself from the cover? You do not seem to be denying this possibility and looking for a get out from your own mistake. Why would they tell you you were no longer insured if it was indeed yourself that made the changes.

luci

Does Motability have any restriction on the number of people who could drive or be insured to drive the vehicle?

dunstonh

Despite being the policy holder, driving my own vehicle, having paid every premium, and having a clean licence — they refused to pay because of a system error they never told me about. I've raised this with the Financial Ombudsman on grounds of FCA Consumer Duty breaches, failure to notify, unjust enrichment (taking premiums for coverage they now say didn't exist), and failure to protect a vulnerable customer.

how did you do the change? - online or phone.

What did the revised policy schedule say after your changes?

Why did Direct Line reject your complaint? (an error on their part wouldnt normally be rejected)

If you're on the Motability scheme, please check your Certificate of Motor Insurance to make sure YOU are listed as a named driver on your own policy.

Being with motbility doesnt matter. Its common sense to check any motor policy you set up or amend. Indeed, the insurer tells you to do so.

Can anyone suggest anything else I could do to put pressure on Direct Line to reconsider their decision

Not until we know why they rejected your complaint. You are accusing them of making a mistake and having a system error. So, we have your side of the story. Now, tell us what they said when they rejected your complaint, as it seems a bit strange that an error on their part wouldn't be corrected. It would suggest something else is going on with respect to the reason for the complaint rejection.

The people here can be helpful, but for any meaningful help, we need to know why they rejected their complaint, as it would explain their decision and reasoning.

The comments above about the number of drivers could be in play as you are restricted to three at any one time.

MyRealNameToo

If it's already gone to the ombudsman there is little anyone can suggest. As you've already found here, by using ridiculous terminology you will often get peoples backs up so hopefully you didnt do the same with them.

As others have said, on what grounds did DL reject the complaint?

You say you added two named drivers, did you have any others before those two? The Mobility policies I believe allows a maximum total of three people including the policyholder.

born_again

https://forums.moneysavingexpert.com/discussion/comment/81896906#Comment_81896906

Rule of thumb, 3. But you can get a open policy if it is someone that that a lot of different carers.

https://www.mobilityinmotion.com/motability-insurance-in-2025/

mgg1971

Thank you for your collective messages above.

To give context to the issues I have experienced, I put my friends in Leeds that I was staying with after my separation from my estranged wife and two young boys (aged 9 and 13 years; whom I have not seen or had any contact with for over 14 months). As such, my mental health was very poor, constantly feeling suicidal!

When I was staying with my friends in Leeds, I had put them onto my insurance policy, so that they could utilise the hire car; especially since they allowed me to stay without paying them rent and I was also charging my car at their property. When I placed my two friends (husband and wife) on my policy, my name was removed (without any notification that I was no longer insured by Direct Line, which is what I had assumed since I was the policy holder on the policy).

The external Company (RGI) that Direct Line used to investigate my claim even stated in their report the following: "I was informed by Direct Line Mobility on reporting this accident that my name had been removed by them on 22 May 2025, when I added Neil and Chidambara on. No one informed me that this was the procedure and I was driving in good faith all this time believing that I was eligible to drive the vehicle. I would have expected a call or a communication from Direct Line to inform me of this, and I would have remedied the situation to have my name reinstated as a named driver." Direct Line did not take any notice of the findings of the independent investigation report and stated that I was not insured because I was no longer a named driver on the policy."

So, to summarise, since I was no longer a named driver on the insurance policy, I was no longer insured on the insurance policy on the accident that occurred on 04.02.26; despite the conclusions made by the independent Company (RGI) that Direct Line had appointed to investigate my claim.

Despite both RGI and I stating that there was no maliciousness in me removing myself from the named drivers on the insurance policy, and that Direct Line should have informed me that I was no longer insured on the insurance policy. Any extenuating circumstances have not been considered by Direct Line, as was suggested by the external agency (RGI).

It is easy to make assumptions, when we don't understand all of the facts. I wonder how many of us would have assimilated all of the small print in any insurance policy, when their entire world has fallen part; and they have lost their family, and specifically access or any contact with their two young children); their family home; and had to move to their friends home in Leeds (since they had nowhere to stay); and were in a financial mess because of the solicitors and barristers involved; to make a balanced and constructive stance….

Thank you once again for your collective thoughts :)).

chrisw

Whilst I have every sympathy with your situation, it is really irrelevant - you were driving uninsured. There is a section on your Motability account which says persons insured to drive, and they will be listed under that.

All the RGI report does is confirm that you were uninsured = it doesn't matter whether it was malicious, you forgot or whatever.

MyRealNameToo

Despite both RGI and I stating that there was no maliciousness in me removing myself from the named drivers on the insurance policy, and that Direct Line should have informed me that I was no longer insured on the insurance policy. Any extenuating circumstances have not been considered by Direct Line, as was suggested by the external agency (RGI).

It is easy to make assumptions, when we don't understand all of the facts. I wonder how many of us would have assimilated all of the small print in any insurance policy, when their entire world has fallen part; and they have lost their family, and specifically access or any contact with their two young children); their family home; and had to move to their friends home in Leeds (since they had nowhere to stay); and were in a financial mess because of the solicitors and barristers involved; to make a balanced and constructive stance….

Intent is irrelevant, most people dont intend to have a car crash but they are still liable when they drive into the back of someone because they were distracted.

Did you do the change over the phone or online? If the former have you gotten a transcript of the call? Presumably if its the later than RGI will have already commented on the screen flow and what it would have shown.

Must admit that I dont know the operational aspects of Mobility, dealt with RSA many times when they were the underwriter but that was in a claims situation. I would have assumed they still send out a revised schedule showing who's entitled to drive but can't say with absolute certainty.

Very few people read the small print, not many more read the large print either but thats why the Financial Ombudsman is full of cases that it doesnt uphold because the person bought the wrong thing and the insurer has applied the terms fairly. The fact it's a common issue with people doesnt mean the law gives you a free pass… ignorance is generally not an acceptable defence.

dunstonh

Despite both RGI and I stating that there was no maliciousness in me removing myself from the named drivers on the insurance policy, and that Direct Line should have informed me that I was no longer insured on the insurance policy. Any extenuating circumstances have not been considered by Direct Line, as was suggested by the external agency (RGI).

The problem is that Direct Line Motability only allows up to three named drivers on a Scheme vehicle at any one time.

It is also very common for the person qualifying for the Motability lease not to be a driver. So, having the insurance in their name but not as a driver is quite normal. It sounds like you needed an open insurance policy that allows for multiple carers rather than DLM which restricts to 3.

It is easy to make assumptions, when we don't understand all of the facts. I wonder how many of us would have assimilated all of the small print in any insurance policy, when their entire world has fallen part; and they have lost their family, and specifically access or any contact with their two young children); their family home; and had to move to their friends home in Leeds (since they had nowhere to stay); and were in a financial mess because of the solicitors and barristers involved; to make a balanced and constructive stance….

The insured drivers are not in the small print. They are listed on the short policy schedule in normal text. They are also listed online when you make changes.

With DLM you do the following:

Online account route
You (or the appointee) log in to your Motability Scheme online account and go to the Insurance / Insurance cover section, which takes you into the Direct Line Motability portal. From there you select the existing named driver you want to remove, confirm their removal, then choose the option to “add a new driver” and enter the new person’s details (name, date of birth, licence details, claims/convictions, and whether they’re permanent or temporary, and whether they live at your address).

If the new driver meets Direct Line Motability’s eligibility criteria, they’re added straight away and can drive immediately, and you’ll get updated insurance documents in the post and in your online account. If you already have three named drivers on the policy, you must remove one first, as the system will not let you add a fourth.

Phone route

If you prefer, you can call Motability’s insurance line (currently 0300 037 3737) and ask them to remove one named driver and add another; the new driver needs to be present on the call to answer Direct Line Motability’s questions. Once approved, the change is effective immediately, just as it would be if done online.

I would have expected a call or a communication from Direct Line to inform me of this, and I would have remedied the situation to have my name reinstated as a named driver." Direct Line did not take any notice of the findings of the independent investigation report and stated that I was not insured because I was no longer a named driver on the policy."

If you did it online, then you would not expect a call as they would have followed your instructions (or the person you nominated to do it) and confirmed it online. They then give you confirmation online and send it by post.

—-Basically, this looks like you or your nominated appointee decided to remove you to make space for the extra drivers and stay within the 3-driver limit

Did you input the details online or by phone?

Or did someone else input them for you?