Admiral Sets Aside £50 Million for Car Claims Redress August 2025 – Allegiant Finance Saw This Coming

Admiral admits failures in processes and has now put aside £50m for Car Claims Redress.

The UK insurance industry is facing a significant reckoning as Admiral Group, one of the country’s largest motor insurers, announced it has set aside £50 million to compensate customers who received inadequate settlements for stolen or written-off vehicles. This landmark decision comes following an investigation by the Financial Conduct Authority (FCA) and validates what Allegiant Finance has been telling customers for months now – insurers have been systematically undervaluing vehicles.

FCA Investigation Exposes Widespread Undervaluation

The Financial Conduct Authority’s investigation into motor insurance claims revealed concerning practices across the industry. The regulator found evidence that some insurers were offering customers less than their written-off or stolen vehicles were worth, and crucially, were only increasing those offers when pressed by policyholders.

Admiral’s CEO Milena Mondini de Focatiis acknowledged the company’s shortcomings, stating that certain internal processes had failed to respond swiftly enough to volatile used car market conditions, particularly during the pandemic when second-hand car prices soared. The affected settlements span from 2019 to 2025, with the insurer estimating that approximately 3% of motor total loss claims during this period were impacted.

However, Allegiant’s research across all insurers is that much more than 3% of customers may be due compensation for an under-valued vehicle upon insurance settlement.

The FCA’s review examined 12 major insurers responsible for 70% of the UK motor insurance market, making Admiral the first to publicly quantify its car claims redress exposure. This suggests other insurers may face similar compensation requirements in the coming months.

Allegiant Finance: Ahead of the Curve on Vehicle Undervaluation

While Admiral’s announcement may come as a surprise to some, Allegiant Finance has been fighting these unfair practices for months. The company has been helping customers challenge inadequate vehicle valuations and secure the compensation they deserve through its specialist car claims redress services.

Back in 2024, Allegiant wrote on its website, “As a Claims Management Company, Allegiant Finance analyses decisions made by the Financial Ombudsman Service to deepen our understanding of claim resolutions. This insight has revealed that many car insurers do not treat customers fairly, which can lead to rightful compensation being withheld.” Allegiant goes on to explain how their expert team has verified that insurers have been making unfair offers that fall short of realistic replacement costs. https://allegiant.co.uk/unfair-car-insurance-policy-terms

Real Customers, Real Results

Allegiant Finance’s proactive approach has already delivered tangible results for customers affected by Admiral’s undervaluation practices securing them car claims redress:

Ms P approached Allegiant Finance for assistance in February 2025 regarding her Ford, which was badly damaged and written-off in 2021. With Allegiant’s expert support, Ms P successfully secured over £1,500 in compensation from Admiral.

Mr D came to Allegiant earlier in 2025 concerning his vehicle that was written-off in 2019. Through Allegiant’s specialist knowledge and negotiation skills, he recovered over £1,200 from Admiral.

These cases exemplify how Allegiant Finance has been successfully identifying and challenging unfair vehicle valuations long before Admiral’s public admission of wrongdoing.

The Scale of the Problem

The undervaluation issue extends far beyond Admiral. Financial Ombudsman Service records show numerous cases where customers have successfully challenged insurer valuations, and customers have received compensation where they would struggle to replace their damaged car with a like-for-like vehicle.

The FCA’s broader warning to the industry in December 2022 highlighted that offering prices lower than fair market value is not permitted under FCA rules. The regulator specifically cautioned that some insurers were making low initial offers, only increasing them to fair market value when customers complained.

With economic factors such as Brexit and the pandemic, second hand car prices have increased and the Financial Ombudsman has observed for several years now that cars are tending to be sold increasingly at their advertised asking price. It means that to identify the true market value of a vehicle, insurers must make careful use of industry guides in addition to monitoring car adverts – of the same car model and similar mileage to the vehicle written-off.

With approximately 60% of vehicle values changing throughout the course of a month, insurers must carry out a careful and accurate assessment when valuing a vehicle, to ensure that the customer does not lose out. But with Admiral’s admission that it will need to compensate some of its customers, serious questions are being asked whether loose practices are leaving customers short.

Understanding Car Claims Redress

The redress process typically involves:

• Challenging the insurer’s initial vehicle undervaluation
• Providing evidence of fair market value using industry guides
• Negotiating with insurers or escalating to the Financial Ombudsman Service
• Securing compensation for the difference between what should have been paid and what was actually received

Allegiant Finance offers its car claims redress services on a “No Win, No Fee” basis, with success fees ranging from 18% to 36% including VAT. This approach means customers only pay when compensation is successfully recovered, removing the financial risk of challenging their insurer.

Looking Ahead

Admiral expects to begin contacting affected customers during the second half of 2025, though the exact identification process remains unclear. However, customers don’t need to wait for their insurer to act. As Allegiant Finance’s success stories demonstrate, proactive action can secure compensation long before insurers publicly acknowledge their mistakes.

The FCA has made it clear that it’s “pleased that Admiral is acting on our findings to put things right for its customers” and is working to ensure affected customers receive appropriate compensation. However, for those who suspect they may have been affected by vehicle undervaluation, specialist claims management companies like Allegiant Finance offer an immediate pathway to potential compensation.

With over £108 million reclaimed across all claim types and more than a decade of experience in the financial services industry, Allegiant Finance has established itself as a leader in helping customers secure fair treatment from financial firms like insurers. As more insurers face scrutiny over their vehicle valuation practices, Allegiant’s early recognition of these issues positions the company as a trusted advocate for customers seeking car claims redress.

The Admiral case serves as a stark reminder that insurers don’t always get it right the first time – but with the right expertise and determination, customers can secure the compensation they deserve.