Insurers must clean up their act after it emerged they have been breaking rules by undervaluing customers’ cars when vehicles are written off, the City watchdog warned.
The Financial Conduct Authority (FCA) said it had evidence that some consumers were being shortchanged by their insurance provider as when their car was scrapped they were offered a figure below the vehicle’s “fair market value”. In some cases staff only increase offers when a consumer complains, it said, adding that it was particularly important that people were paid fairly while the country grapples with a cost of living crisis.
