Their Insurer Offered 30% Less Than the Car Was Actually Worth
How independent valuations uncovered a £3,638 shortfall — and why this happens more often than you think.
What Happened
A couple — referred to as Mr and Mrs J in the ruling — owned a premium-brand sports utility vehicle, first registered in late 2009. It featured a powerful engine, automatic transmission, and all-wheel drive.
In June 2023, their car was damaged in an accident. Their insurer, Admiral, declared it a total loss. Under their policy, they were entitled to the pre-accident market value of the vehicle, minus their £500 excess.
What followed is a textbook example of why you should never accept an insurer's first offer without checking it against independent valuation evidence.
The Insurer's Offer: Only Two Valuation Sources
Admiral obtained valuations from just two of the four recognised trade guides:
Admiral averaged these two figures and offered £8,900. After deducting the £500 policy excess, they sent the couple a cheque for £8,400.
The problem?
Admiral only checked two out of four recognised valuation sources. And they used the average rather than the highest figure — a method the Financial Ombudsman no longer considers fair.
The Missing Valuations That Changed Everything
When the case was referred to the Financial Ombudsman Service, the investigator checked all four recognised trade guides. The two sources Admiral had not checked told a very different story:
What Admiral Checked
What Admiral Missed
The two missing valuations were over £3,500 higher than Admiral's offer. The Ombudsman's investigator also found comparable vehicles advertised for between £10,999 and £12,500 — supporting the higher valuations.
What the Ombudsman Decided
The Ombudsman's ruling was clear. They referenced a key policy change:
"From December 2023, we will usually regard the highest of the four trade guide figures as fair unless there is enough evidence to the contrary." — Financial Ombudsman Service, Decision DRN-4573969
The Ombudsman valued the car at £12,538 — the highest of the four trade guide valuations — and ordered Admiral to pay:
What This Means for You
This case isn't unusual. It highlights three things every policyholder should know:
Insurers don't always check all four guides
Admiral only used Glass's and CAP. If they had checked AutoTrader and Percayso, they would have found the car was worth £3,638 more. You cannot assume your insurer has done a thorough valuation.
The "average" method is no longer fair
Admiral averaged their two figures. The Ombudsman now regards the highest of the four guides as the fair value. If your insurer is averaging, they could be significantly underpaying you.
Having the right evidence changes the outcome
Without access to all four valuation sources, the couple would have had no way to know they were being underpaid by £3,638. The independent valuations were the only reason the Ombudsman ruled in their favour.
How to Protect Yourself
If your car has been written off or stolen and your insurer has made you an offer, here's what you should do:
Don't accept the first offer
As this case shows, the first offer can be 30% below what your car is actually worth. Once you accept, you generally cannot go back.
Get valuations from all four recognised sources
The Financial Ombudsman uses AutoTrader, Glass's Guide, CAP HPI, and Percayso Vehicle Intelligence to settle disputes. A Car Value Report gives you all four in one professional PDF, ready to send to your insurer.
Challenge your insurer with the highest valuation
Since 2023, the Ombudsman regards the highest of the four trade guide figures as the fair value. Present this to your insurer and ask them to match it. See our step-by-step dispute guide for exactly how.
Don't Leave Money on the Table
In this real case, the couple nearly lost £3,638 because their insurer only checked two out of four valuation sources. Get all four valuations in one report and make sure your payout is fair.
One-off fee • Instant delivery • Ombudsman-ready format
Get Your Valuation ReportUses the exact same four sources the Financial Ombudsman relies on