Stuck in reverse: Which? reveals the fastest (and slowest) car insurers for dealing with claims

Car insurers are generally more reliable than other sectors for accepting customer claims: data from the Financial Conduct Authority (FCA) found that car insurers accepted 99 per cent of claims last year, fully or partially, versus just 63 per cent of claims for buildings-only cover. However, digging deeper, the experience of some customers is not such a smooth journey. 

Delays during the process were one of the main drivers of a rise in customer complaints about car insurance firms, according to the Financial Ombudsman Service (FOS), which mediates complaints firms have not been able to resolve with customers. This echoes Which? research into FOS insurance complaints decisions, which found that more distress and inconvenience was caused in complaints related to claim delays than any other type, highlighting the impact these delays cause.

Now, a Which? survey of over 4,700 car insurance claimants found that nearly two-fifths (39%) of respondents had to chase their insurer to progress their claims. Customers were asked to rate their provider for the speed at which they dealt with their insurance claim. While LV and NFU Mutual received five stars from claimants, around a third of the 19 firms rated (six) were awarded just two stars out of five. This suggests many firms are prolonging the ordeal of making a claim for motorists. The six insurers finishing bottom of the pile with two stars were: 1st Central, Admiral, Age Co, Ageas, Esure and RAC.

To make matters worse, the speed of handling claims was not the only issue for poorly-rated firms. 

For settlement value - how much the insurer settled claims for - many insurers earned just two stars, with only NFU Mutual receiving five stars. Worryingly, the FCA has repeatedly warned car insurers not to make unfairly low settlement offers in claims where a cash settlement is offered to replace the vehicle in total loss claims. Based on the results of Which?’s survey, it unfortunately may be the case that some insurers have yet to up their game and offer claimants settlement sums that they feel satisfied with.

The majority of insurers also fell down when it came to providing regular communication updates on how claims were progressing. Again, NFU Mutual led the way (with four stars), and Aviva, Direct Line, Lloyds Bank and LV managed three stars. However, the rest (14) received just two stars for this. The majority of insurers also received two stars when claimants fed back on how well different parties (e.g. insurers, repairers, claims handling companies) had worked together to resolve their claim. Ageas, Age Co, esure and RAC had the dubious honour of managing two out of five stars in each of these individual service areas. They were also the four worst according to our analysis by overall claims score - which rates how satisfied claimants are overall with their insurer, and how likely they would be to recommend it - based on how it handled their claim.  

The survey builds on Which?’s research last year into the insurance industry, which found that many customers across motor, home, travel, and pet insurance were experiencing difficulties when making a claim. Nearly half (48%) of those policyholders experienced at least one problem during the claims process, including having to repeatedly upload supporting documents and chasing their insurer for a decision.

Which? believes that many firms need to up their game and deal with claims in a much more efficient way that does not needlessly cause customers delays and inconvenience. That could include clearly explaining the different stages of the claims process and expected timelines, updating customers about the progress of their claim, including how they are addressing any issues that have arisen and informing customers of why they have rejected or partially rejected a claim. Insurers are subject to regulatory requirements under the FCA’s Consumer Duty, which means they must deliver good outcomes to their customers. The regulator is currently reviewing firms’ claims handling arrangements and should not hesitate to take action against insurers consistently falling short.

Jenny Ross, Editor of Which? Money, said: 

“Consumers only find out how good their insurer is when it comes to making a claim. Delays during that process can make an often stressful situation worse. 

“Whether it’s a bump or scratch or completely written off vehicle, drivers will rightly expect to see their claim dealt with efficiently. However, our research shows that some firms are stuck in reverse. 

“It’s crucial that the regulator monitors how well firms handle claims, taking enforcement action against those found to be falling short.”

-ENDS- 

Notes to Editors 

Based on a survey conducted in November 2024 of 4,719 Which? Connect panel members and members of the public who have made a car insurance claim in the last two years (since November 2022).

Which? - Consumer harms in the insurance claims process

Which? - Complaint upheld: delay, distress and inconvenience caused by insurers

Tips on how to make a claim

1. Check our car insurance tables

Sometimes prevention is better than cure. You can use our online tables to find the insurers that excel in the eyes of their customers generally and specifically when it comes to claims handling. We only survey customers who have made a claim within the past two years 

2. Get detail about what happened

When you report a claim to your insurer, the more detail and evidence you can supply about the circumstances of the incident, the more efficiently and effectively it can handle your claim. This is especially true if the incident involved multiple parties, and there's a potential dispute around how an accident occurred.   

3. Keep your own records 

From repairers to claims handlers to legal advisors, lots of different people and companies can become involved in processing a claim - meaning there's always a chance of confusion. Try to keep records of correspondence between you and people involved in claims. This might make it easier to clear up misunderstandings where they've happened or to flag any mixed messages before they become problems.   

4. Make sure the settlement offer is fair 

If your claim becomes a total loss claim - meaning the car is beyond economic repair and must be replaced, the insurer is likely to make a cash offer. This will reflect the trade-in value of the car immediately prior to the accident or theft - so if it's lost value (as is likely) since you bought it, you'll probably be offered less than what you paid for it.However, if you think the insurer's offer seems unreasonably low, ask it to explain the figure it's arrived at. And if you can provide evidence that the car has a higher value than the insurer's estimate, it may be prepared to reconsider. Check trade quotes for similar models in a similar condition to yours to see how they compare. And if you can, getting an expert to value your vehicle can also add weight to your case. 

5. Complain 

If something goes wrong in your claim - whether it's a decision it's made or how the claim has been handled - a powerful tool that can help put things right is a complaint. Tell the insurer in writing why you're unhappy with the service you've received, and would like to complain, and try to outline what you think it should do to put things right. Once it's received a complaint the insurer must respond within eight weeks. Complaints are often resolved in far less time than this and in the majority of cases, the insurer accepts some fault.However, if by this deadline, the insurer hasn't responded - or if you're not satisfied with how it proposes to resolve the situation - you can escalate it to the Financial Ombudsman Service, which will independently review the complaint.

About Which?

Which? is the UK’s consumer champion, here to make life simpler, fairer and safer for everyone. Our research gets to the heart of consumer issues, our advice is impartial, and our rigorous product tests lead to expert recommendations. We’re the independent consumer voice that influences politicians and lawmakers, investigates, holds businesses to account and makes change happen. As an organisation we’re not for profit and all for making consumers more powerful.

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