11:28 am, August 15, 2025
Insurance firm Admiral revealed this week that it has set aside approximately £50m to compensate its customers who didn’t receive a fair settlement payment if their car was written-off or stolen.
In its half year results that came out yesterday (August 14), it said that volatility in the used car market in recent years had lead to these shortfalls in settlements with ‘certain internal processes failing to respond swiftly enough’.
The Financial Conduct Authority (FCA) has been looking into 12 insurers, who are responsible for 70% of the motor insurance market, when it comes to these insufficient payments. It is expected that other car insurers will also look to make things right for customers.
For Admiral, the affected settlements were between 2019 to 2025. There’s been no information about whether customers can contact their insurer to find out if they were affected, and Admiral has said it aims to contact those affected before the end of the year.
In its half year results, Admiral downplayed the impacted, writing: ‘The estimated incremental claims cost of this action to Admiral (excluding statutory interest) is approximately £50m (around half of which has been accounted for in H1 2025, the remainder in the previous financial year).
‘For context, the cost represents approximately 3% of motor total loss claims over the relevant period. Admiral expects to begin contacting impacted customers during H2 2025, and whilst noting uncertainty remains, does not expect the final cost of the action to vary materially from that noted above.’
Speaking to the Times, a spokesperson from the FCA said: ‘We’re pleased that Admiral is acting on our findings to put things right for its customers.
‘Customers should wait to be contacted by Admiral and we’re working with the firm to make sure that those affected get compensation if they’re due it.’
