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The Guardian - UK

Business

Hilary Osborne

Car insurers to pay 270,000 drivers share of £200m compensation

Car crashed into tree — The FCA warned insurers not to undervalue cars and other insured items when settling claims. Photograph: Kzenon/Alamy

An estimated 270,000 drivers are receiving a total of £200m compensation from car insurers after the regulator found they were short-changed when their vehicle was stolen or written off.

The money is being paid out after a review by the Financial Conduct Authority (FCA) which found insurers had undervalued vehicles when paying out on claims.

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