Some car insurers are significantly faster than others when it comes to handling claims, according to new research by consumer group Which?, which highlights the fastest and slowest firms.
Car insurers generally accept a higher proportion of claims compared to other insurance sectors. Data from the Financial Conduct Authority (FCA) shows that car insurers accepted 99 per cent of claims last year, either fully or partially, compared to just 63 per cent for buildings-only cover.
However, the claims process is not always smooth. Delays in handling claims were a major factor behind rising customer complaints about car insurers, according to the Financial Ombudsman Service (FOS). Which? research into FOS insurance complaint decisions found that delays caused more distress and inconvenience than any other issue.
A Which? survey of over 4,700 car insurance claimants found that nearly 40 per cent (39%) had to chase their insurer to progress their claim. When asked to rate their insurer on claims speed, LV and NFU Mutual were awarded five stars by customers. In contrast, six of the 19 firms assessed received just two stars: 1st Central, Admiral, Age Co, Ageas, Esure, and RAC.
Speed was not the only concern. On settlement value – how much insurers paid out – most providers received low ratings, with only NFU Mutual earning five stars. The FCA has previously warned insurers against offering unfairly low settlements for total loss claims, yet Which?’s findings suggest that some firms continue to disappoint policyholders.
Communication was another issue, with most insurers receiving just two stars for providing regular updates. Only NFU Mutual scored four stars, while Aviva, Direct Line, Lloyds Bank, and LV earned three. Similarly, most firms were rated poorly on how well different parties – including insurers, repairers, and claims handlers – coordinated to resolve claims.
Access the most comprehensive Company Profiles
on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Company Profile – free
sample
Thank you!
Your download email will arrive shortly
We are confident about the
unique
quality of our Company Profiles. However, we want you to make the most
beneficial
decision for your business, so we offer a free sample that you can download by
submitting the below form
By GlobalData
Four firms – Ageas, Age Co, Esure, and RAC – received two stars across all key service areas. They also ranked lowest on the overall claims score, which measures claimant satisfaction and likelihood to recommend the insurer.
The findings build on Which?’s previous research, which highlighted widespread difficulties across motor, home, travel, and pet insurance. Nearly half (48%) of policyholders surveyed last year reported experiencing at least one problem during the claims process, such as repeatedly submitting documents or chasing for updates.
Which? has called on insurers to improve efficiency, including clearer communication on claims stages and timelines, regular progress updates, and better explanations for rejected or partially accepted claims. Under the FCA’s Consumer Duty, insurers are required to deliver good outcomes for customers. The regulator is currently reviewing firms’ claims handling processes and has the authority to take action against those consistently underperforming.
Jenny Ross, Editor of Which? Money, said: “Consumers only find out how good their insurer is when making a claim, and delays can make an already stressful situation worse. Our research shows that some firms are stuck in reverse. It’s crucial that the regulator monitors claims handling closely and takes action against insurers that are falling short.”
