If a car is written off in a road traffic accident or is stolen then you would expect the motor insurance companies to offer motorists a fair price for the vehicle. After all, motorists have been paying for the cost of insuring their cars. Well, according to some recent research by the Financial Conduct Authority (FCA) this is not always the case.
The above regulatory body carried out a survey of 12 insurance companies that apparently make up around 70% of the motor insurance market. It discovered that some offers of recompense made to motor insurance policyholders were of an unfair value.
The FCA also found that in some instances some insurance companies offered a lower amount as compensation initially in the knowledge that if the customer complained about the initial offer or challenged the amount they were being offered for their written off car or stolen vehicle it would increase the offer. Apparently, if this happens then it could be viewed as the insurer breaching its regulatory requirement.
The Financial Conduct Authority is liaising with motor insurance companies to ensure that their findings are addressed.
The above survey carried out by the regulatory body will no doubt concern a lot of motor insurance policyholders. One would expect insurance companies to treat all policyholders fairly when it comes to assessing such insurance claims. After all, we are sure that you will agree, it is a stressful time for motorists when they are involved in a road traffic accident or have their car stolen.
Of course, there will no doubt be a number of motorists who will not bother to question a valuation made by a motor insurance company such as those considered to be more vulnerable.
Let us hope that all motor insurance companies start to treat motorists fairly when it comes to assessing the amounts they are prepared to pay out when someone claims on their policy due to their car being stolen and never seen again or being written off in a serious road traffic accident.
