How to Win a Motor Insurance Complaint as Ombudsman Cases Hit a Five-Year High

Car and motorcycle insurance complaints reaching the Financial Ombudsman Service climbed to 3,519 in the first three months of 2026, up from 3,145 in the same period last year, a rise of almost 12 per cent according to analysis of the regulator's own data. Motor insurance remains the single most complained about financial product in Britain, generating more than twice the volume of the next largest category, buildings insurance.

The figure that should worry every driver with an open claim sits alongside that rise: only 34 per cent of motor and travel insurance complaints referred to the Ombudsman were upheld in the driver's favour. Two out of every three drivers who take a dispute all the way to the Ombudsman still lose. Car and motorcycle insurance has generated more than 61,700 complaints to the Ombudsman over the past five years, accounting for 32 per cent of every general insurance complaint referred to the service in that time.

Buildings insurance complaints climbed alongside motor cover too, and travel insurance has followed a similar upward path in recent years, suggesting the pressure sits across the whole general insurance market rather than motor policies alone. Even so, motor remains the product every driver is legally required to hold, which makes a mishandled claim far harder to simply walk away from than a dispute over a holiday policy or a home insurance excess.

Why Complaints Keep Rising

The rise is not evenly spread. Complaints most commonly relate to how long insurers take to settle a claim, disputes over the value an insurer puts on a written off or stolen car, and disagreements over which party was at fault following a collision. Rising repair costs sit behind much of the friction: the average accidental damage claim now costs insurers £3,699, up 8 per cent in a single quarter, driven by pricier parts and the sensors and cameras fitted to modern cars. Insurers facing higher costs have an obvious incentive to challenge a claim's value before paying out.

None of that context makes a wrongly handled claim acceptable. Every driver who has paid their premium in full is entitled to a decision that reflects the actual terms of their policy, decided within a reasonable time and communicated clearly, regardless of what is happening to the insurer's costs elsewhere.

Write Off Valuations Are a Recurring Flashpoint

A regulatory review of how insurers value stolen and written off vehicles found firms sometimes offering settlements below a fair market estimate, and only raising that figure once a customer pushed back with a formal complaint. The same review found most firms applied a standard 20 per cent deduction to any car that had previously been recorded as a total loss in any category, applied automatically rather than after any look at the individual vehicle's actual condition. Some firms could not even say how often their own initial offers were later increased: they had never collected the data needed to check.

That pattern helps explain why valuation disputes make up such a large share of Ombudsman motor complaints. A driver offered a settlement that looks low has every right to ask the insurer to justify the figure against an independent trade guide, rather than accepting the first number offered as final.

The Two Stage Process Most Drivers Skip

A large number of drivers who feel let down by an insurer never make a formal complaint at all, and of those who do, many stop after the insurer's first response rather than escalating further. The Ombudsman is a free, independent service of last resort, not a first port of call, and a complaint can only reach it once the insurer has been given a fair chance to put things right first.

How to Fight Back

Complain to the insurer directly and in writing first, whether that is by letter, email, or the online form most insurers now provide. Set out exactly what went wrong, what outcome is wanted, and attach any supporting evidence such as photographs, repair quotes, or written correspondence.

Ask for a final response letter. Insurers must issue one within eight weeks of receiving a complaint, and that letter must explain how to take the complaint to the Financial Ombudsman Service if the driver remains unhappy. If eight weeks pass without a final response, the complaint can be referred to the Ombudsman regardless.

Escalate to the Financial Ombudsman Service within six months of receiving the final response letter. The service is free for consumers, does not require a solicitor, and can be started online at financial-ombudsman.org.uk.

Gather independent evidence of a car's value before disputing a total loss settlement. Insurers must offer a fair market value, and trade guides, alongside adverts for comparable cars for sale locally, can support a case that an offer is too low.

Keep a written timeline of every call and email, including dates, names, and what was said. Ombudsman investigators assess evidence from both sides, and a driver with a clear record has a stronger case than one relying on memory alone.

Do not assume a rejected complaint is the final word. The Ombudsman upholds more than a third of the motor complaints it investigates, and each case is decided on its own facts rather than by precedent, so a case that looks weak on paper can still succeed with the right evidence attached.

Name the specific outcome wanted in the original complaint letter, whether that is a higher settlement figure, a reversal of a fault decision, or compensation for distress and inconvenience caused by delay. Ombudsman investigators can only decide what has actually been asked for, and a vague complaint tends to receive a vague resolution.

Ask the insurer directly whether third party engineer or repairer reports used to assess a claim can be shared in full. Drivers are entitled to see the evidence an insurer relied on to reach a decision, and a report that turns out to be incomplete or inconsistent with the vehicle's actual condition can be challenged on its own terms.

A Free Route That Few Drivers Use to Its Full Extent

Fewer than half of drivers who lose a first round dispute with an insurer go on to lodge a formal complaint, and fewer still take that complaint all the way to the Ombudsman once it is rejected. The service costs nothing to use, carries no legal risk for the person complaining, and reviews each case fresh rather than simply rubber stamping the insurer's original decision.

Hire purchase complaints linked to motor finance sit close behind car and motorcycle insurance among the products drivers complain about most, and both categories have grown year on year. That pattern points to a wider strain across the whole cost of running and financing a car, not a single insurer or product having a bad quarter. A driver disputing a claim decision is rarely dealing with an isolated problem, and complaints data suggests plenty of other drivers are working through the exact same process at the exact same time.

The Ombudsman's own leadership has been clear that rising complaint numbers reflect real problems in how claims get handled, not simply more drivers becoming aware of their rights. Until settlement times and valuation practices improve across the industry, the complaints process remains the only formal route drivers have to hold an insurer to the terms it originally sold them, and a 34 per cent uphold rate shows that route works often enough to be worth using.

A driver who wins at the Ombudsman stage typically receives the difference between the insurer's original offer and a fair settlement, plus interest, and in some cases an additional payment for distress and inconvenience where an insurer's handling fell well short of a reasonable standard. None of that compensation arrives automatically. It only exists for drivers willing to put a complaint in writing and see the two stage process through to the end.

Sources:

• https://www.insurancedatalab.com/2026/06/29/latest-ombudsman-data-suggests-promising-signs-despite-increase-in-motor-insurance-complaints/
• https://www.financial-ombudsman.org.uk/consumers/complaints-can-help/insurance/motor-insurance
• https://www.fca.org.uk/publications/multi-firm-reviews/motor-insurance-claims-analysis-multi-firm-review-2025.pdf