A new survey by consumer group Which? suggests there are some big differences between car insurers on everything from handling customer claims to how much they pay up
Car insurers Esure and Admiral are among the slowest at dealing with customer claims, according to a survey. The two industry heavyweights were named and shamed in research by consumer group Which?
Motor insurers are generally better than others in the industry at accepting claims by customers. Data from the Financial Conduct Authority found car insurers accepted – fully or partially – 99% of claims last year, compared with just 63% for buildings only cover.
But the experience of those questioned by Which? suggests big differences between firms. A Which? survey of more than 4,700 people who had made a car insurance claim in the last two years found nearly two-fifths (39%) had to chase their insurer to progress their claims. The minimum sample size for an insurer to be included was 40. Customers were asked to rate their provider for the speed at which they dealt with a claim.
LV and NFU Mutual were the only two out of 19 included that received five stars for speed of claim handling. NFU Mutual got an overall claims score of 87%, and LV 76%.
At the bottom were six that got just two stars out of a possible five for speed of dealing with claims.
Esure’s overall score was lowest, at 53%, with Which? giving it just two stars for how regularly it updated customers on the progress of claims, coordination of different parties involved, and the settlement value. Admiral’s customer score was better, at 61%, but the only area it got three stars for was “clarity of communication on claim progress”.
Both Esure – whose score was based on 56 customers – and Admiral – 534 customers – questioned the findings.
Motor insurers have to adhere to the Financial Conduct Authority’s Consumer Duty, which means they must deliver good outcomes to their customers. The regulator is currently reviewing firms’ claims handling arrangements and Which? says it 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.”
Esure said: “Which?’s research sampled historic claims over a two-year period from November 2022. “Our more recent data from December 2024 shows that 88% of our motor claims customers rate their post-repair satisfaction as four or five out of five, giving us confidence that we’re keeping customers happy and getting them back on the road.”
Admiral said: “Like much of the insurance industry, we experienced some challenges with capacity and lead times for car repairs in 2022 and 2023, however over the last year this has improved considerably.
“We deal with tens of thousands of claims every year, and in 2024, nine out of 10 Admiral customers said they were likely to renew their policy based on their claims experience. We value all customer feedback and are constantly looking for ways we can improve our service. We always try to settle claims as quickly and fairly as possible and our data shows that both total loss settlements and car repairs have improved significantly across 2024.”
